Bauxite Resources Limited (ASX:BAU) Recieves Approval To Commence Mining Operations At North Bindoon Project Area
Perth, Aug 3, 2009 AEST (ABN Newswire) - West Australian, Perth based bauxite explorer and developer, Bauxite Resources Limited (ASX:BAU)(PINK:BXRDF) has now received approval for the Company's inaugural Extractive Industries Licence (EIL) at North Bindoon. Further the Company's Project Management Plan (PMP) has also been approved by the Western Australian State Government Department of Mines and Petroleum (DMP) allowing for the commencement of mining operations.
The grant of the Company's first EIL and PMP allows for the commencement of bauxite quarrying and processing operations, scheduled for commencement later this week, at the Company's initial site in the North Bindoon project area.
The approvals to commence mining have come in less than 21 months since the listing of Bauxite Resources Ltd on the ASX.
BRL has entered into 'trial spot sample' shipment sales arrangements with several groups as a 1st stage in its ramp up to developing its initial 1million tonnes per annum (mtpa) Direct Shipping Ore (DSO) bauxite business scheduled to commence by first quarter 2010. Ultimately BRL aims to be producing 3mtpa of bauxite as well as downstream value added products.
The Company's planned spot shipments will represent a new era for DSO from the Darling Range, Western Australia, which is the largest bauxite and alumina producing region in the world, home to four alumina refineries supplying approximately 18% of the world's alumina which is the feedstock for aluminium smelting.
Exporting DSO bauxite from Western Australia enjoys the benefits of proximity to Asian markets, reduced shipping turnaround as well as the availability of existing rail and port infrastructure at Kwinana and Bunbury.
The DSO of bauxite by BRL will put the Company at the forefront of the rapidly growing trade in bauxite supplies to Asian alumina refineries which rely upon bauxite feedstock. Bauxite imports into China have grown significantly in recent years with China forecast to run out of bauxite within 10 years.
BRL now controls the largest tenement land holding in the Darling Range, Western Australia, for bauxite with over 15,000km2 of ground holdings throughout the south west of Western Australia exceeding the combined Darling Range landholdings of bauxite miners and alumina refinery operators ALCOA and BHP.
The North Bindoon operations will supply the bauxite ore for BRL's planned Stage One DSO program.
About Bauxite Resources Limited
Bauxite Resources (ASX:BAU) (OTCMKTS:BXRDF) was established with a substantial tenement holding in Western Australia to develop new bauxite supply for the global alumina/aluminium industry. The Company listed on the Australian Securities Exchange (ASX) in October 2007.
The Darling Range in the south-west of Western Australia (WA) is the world's largest bauxite mining and alumina refining region producing around 20% of the world's alumina. This area has mined bauxite and refined alumina since the 1960s. These industries are leaders in sustainable resource development and represent the fifth largest sector of WA's resource industry.
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