A mining lease application has been lodged for a bauxite project which will ship from the Port of Bundaberg if it goes ahead.
Australian Bauxite Limited, which operates mines in Tasmania, estimates 55 direct
jobs and up to 150 indirect jobs from pit to port.
The company (ABX) told the ASX today that ML100272 between Gayndah and Mundubbera covers 299 hectares.
The company said it's enjoyed strong support from landholders, who will be briefed individually after travel restrictions are eased.
“If and when approved, the Sunrise Bauxite operations will commence on the Binjour Plateau and, in time, bring smaller regional bauxite deposits into operation to develop a long-term supply chain for this gibbsite-rich type of bauxite which can be refined into alumina at lower temperature with significantly improved energy efficiency,” the company said.
The Sunrise Bauxite Project is designed to sell 500,000 tonnes per year and the resource is estimated at 37 million tonnes.
“The first 10 to 15 years of operation will focus on high-grade zones that require little processing,” the company said.
“Australian Bauxite has a memorandum of understanding with the Port of Bundaberg to investigate the opportunity to export bauxite in bulk tonnages through the Port.
“The plan is to produce high-quality metallurgical-grade bauxite exported in large bulk carrier ships from the Port of Bundaberg, which would increase economic activity and export capabilities around Bundaberg which lies south and outside the Great Barrier Reef.”
Bulk-screening test work in late September confirmed laboratory tests in mid 2019 that Binjour bauxite is ideal for dry-screening to remove fine fractions that must be minimised for safe shipping.
The company intends to maximise production during the Queensland dry season from April to November while the Tasmanian mines will focus on summer output from December to May.
Development costs of $15 million are fully funded by ABX's marketing partner, Rawmin Mining of India, subject to final due diligence when travel restrictions are lifted.
- Earlier report: Binjour bauxite mine a step closer