Abx Large Sale Concluded and New Opportunities Initiated
Sydney, June 30, 2016 AEST (ABN Newswire) - Australian Bauxite Limited (
ASX:ABX) (ABx) is selling bauxite into fertiliser and cement markets at prices higher than the currently over-supplied metallurgical bauxite market. ABx's maiden shipment of 5,557 tonnes occurred on 28 April and a second sale of 5,000 tonnes was announced on 31 May.
ABx is pleased to announce it has concluded a large new sale contract for 35,000 tonnes of bauxite from ABx's Bald Hill mine - the first new bauxite project in Australia for more than 35 years. This sale replaces the second 5,000 tonne sale and payment is to be within 7 days. Shipping dates are to be organised to suit the customer's requirements in due course.
The sale price is satisfactorily profitable and commercial-in-confidence.
Two other small-tonnage sales of fertiliser grade bauxite have been concluded for August and December at similarly profitable prices.
New Customers In Discussions & Signs of Growth ABx is preparing two joint offers with its more experienced marketing partner, RawMin to jointly ship large tonnages into both the Middle East and European markets for up to five years.
ABx has also been approached for samples of cement-grade bauxite from several international customers.
ABx's CEO Ian Levy commented; "This is a great way to end the financial year and we have more positive developments emerging over the coming few months.
"Cement-grade and fertiliser-grade demand is strong and growing but we endured 8 months of negative trends in the aluminium-related metallurgical bauxite markets until recently. Over the last 5 weeks, several customers have approached ABx seeking metallurgical-grade bauxite in significant tonnages.
"In response to these early signs of a strengthening market, ABx has increased its testing of the TasTech technology that separates ABx's bauxite into 3 products: metallurgical-grade, cement-grade and fertiliser-grade bauxite. Once the robustness of TasTech technology is confirmed, ABx will commence large-scale field trials."
To view the full release including tables and figures, please visit:
http://abnnewswire.net/lnk/1Y3ZIJ25
About ABx Group Limited
ABx Group Limited (ABx) (ASX:ABX) is a uniquely positioned Australian company delivering materials for a cleaner future.
The three priority projects are:
- Heavy rare earths: Supplying light and heavy rare earths from Tasmania into Western supply chains
o Processing Options Analysis conducted in partnership with external experts
- Clean fluorine chemical production: Producing industrial chemicals from aluminium smelter by-product (ALCORE)
o Continuous pilot plant under construction in Bell Bay, Tasmania
- Near-term bauxite production: Mining bauxite resources for the aluminium, cement and fertiliser industries
o Agreements executed with Good Importing International for bauxite projects in Queensland and New South Wales, and $2.7 million initial payment has been received
o Approvals well advanced for DL130 bauxite project in northern Tasmania
ABx endorses best practices on agricultural land and strives to leave land and environment better than we find it. We only operate where welcomed.
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