The board of Perth based bauxite explorer and developer, Bauxite Resources Limited announced that it has signed a MoU with JFE Shoji Trade Corporation for Bauxite Direct Shipping Ore supplies to Asia.
The MoU is non binding and the parties will later sign a Sale and Purchase Agreement. JFEST is a Japanese Trading House and will re-sell the bauxite to certain end users in Asia. The identity of the end users is commercially sensitive and will not be disclosed pursuant to the confidentiality clauses in the MoU.
The target quantity in the MoU is 500,000 tonnes of bauxite by the end of 2010 calendar year. The bauxite to be exported will be high total alumina content 48% to 49% and low reactive silica content 1% to 2%.The high quality bauxite is expected to substantially reduce the end user refinery reagent costs and other operating costs. BRL expects that these initial shipments will demonstrate the superior attributes of its bauxite, provide an excellent marketing opportunity and pave the way for long term off-take agreements for its DSO bauxite.
Bauxite Resources Limited is an Australia based company. During the fiscal year ended June 30th 2008, the Company carried out exploration on its tenements and applied for or acquired additional tenements with the objective of identifying economic bauxite deposits. The wholly owned subsidiary of the Company is Darling Range Pty Limited. The projects of the Company include North Darling Range Project, South Darling Range Project and Kimberley Project.
