Bauxite resources finalises alumina agreement
Bauxite Resources has finalised its joint venture with China-based Yankuang Corporation, which will now proceed with planning to construct an alumina refinery in Western Australia.
The Australian company said it had signed an agreement with Yankuang to confirm that all of the conditions of its joint venture and alumina refinery had been satisfied.
The joint venture will officially commence on April 1.
The mining and refining joint venture with Yankuang is aimed at delivering a 1.1Mt/y alumina refinery in the south west of the Australian state by late 2015.
Bauxite said funding for all activities would be in accordance with the agreements signed in January.
Under the agreement, Yankuang will pay 91% of the refinery construction costs and receive 70% of the plant's output.
Bauxite Resources will fund the remainder of the costs and receive 30% of the plant's alumina output.
Also, Yankuang will provide 90% of the funds required for the project's bankable feasibility studies, and 70% of exploration costs, with Bauxite providing the balance.
Bauxite chief executive Scott Donaldson will become the joint ventures' management company's chief executive.