Australian Bauxite’s board has approved the lodgement of a mining lease application and project strategy for the Binjour bauxite project in central Queensland.
Project partner, India’s Rawmin Mining, has agreed to fund all pre-production and working capital costs for the Binjour project and will be entitled to a 50 per cent joint venture interest in the project.
The two companies have reviewed project plans, financial assessments, bauxite market developments and risk-factors over three days, naming Australian Bauxite as the project operator.
Australian Bauxite has spent the last nine years working closely with landholders, government, specialists and customers to develop an optimum strategy for the Binjour project.
The companies plan to target the Indian market with the project. India’s current mining decline has left additional room for the Binjour project, Australian Bauxite noting that regulatory constraints and global competition shows the mining industry in India will face uncertainties.
With bauxite production in India having fallen from 28 million tonnes in 2015 to almost 19 million tonnes in 2018, it is possible that Binjour bauxite can be sold into the expanding bauxite refining and aluminium production industry in the country.
With Tianshan Aluminium onboard for up to 1.5 million metric tonnes per year of Binjour bauxite starting at the end of 2020, the mined product is slated to be delivered to the firm’s new low-temperature refinery in southern China.
The Binjour project’s initial 10 to 15 years will focus predominantly on high-grade zones that require little processing.
The strategy outlines production of high-quality metallurgical-grade bauxite exported in large bulk carrier ships from the Port of Bundaberg, and also plans to leave the land better than it was initially found.