Bauxite Resources has sealed a sales contract with Hongfan International for three 40,000 tonnes spot trial sample shipments of its premium run of mine Darling Range silica bauxite.

In response to the announcement, shares in Bauxite Resources jumped 5.3% to USD 1.19. Under the terms, Bauxite Resources will ship 3 loads of 40,000 DMT of bauxite with shipment expected to occur in November and December. The company announced that it had commenced operations to rail the material from its Darling Range mine to the Kwinana Port to meet the new contact. The shipments will enable BRL to showcase its wares to Chinese alumina companies.

The company believes the processing of its high grade bauxite with low reactive silica will be favorably received and the precursor for larger off take agreements with other mineral traders and refineries in China. Hongfan is part of a Chinese diversified group corporation integrating industrial investment, bulk commodity operations, mineral resource development, international investment and finance.

As a producer of aluminum, bauxite, alumina and other materials, Hongfan has interests in the manufacture of non ferrous metals and is seeking to expand its interests in those areas. Bauxite said that Hongfan intended to establish a long term working relationship with the company.

(Sourced from Proactiveinvestors.com)