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- After extended COVID-related delays, ABx Group (ABX) and Alumin have signed a joint venture agreement to develop the Sunrise bauxite project in Queensland
- Alumin will contribute up to $18 million in development costs through staged payments in exchange for up to a 49.9 per cent maximum interest
- The mine is expected to operate for at least 20 years and will produce two million tonnes of metallurgical-grade bauxite per annum for end users
- ABx can now commence finalising the project approval process
- Company shares end the day 3.85 per cent in the red to close at 12.5 cents
ABx Group (ABX) has signed a joint venture deal with Alumin for the development of the Sunrise bauxite project in Queensland.
The Sunrise Bauxite Project comprises the bauxite mine at Binjour plateau and port operations at Bundaberg.
Under the agreement, Alumin has committed to contribute up to $18 million of the development costs. For each contribution of $3.65 million, Alumin will earn a 10 per cent interest in the Sunrise bauxite project, up to a maximum of 49.9 per cent.
Alumin is an Australian special purpose vehicle company associated with ABx’s marketing partner Rawmin, India. Alumin specialises in funding long term sustainable investments in projects involving mining and bulk-shipping of metallurgical-grade bauxite to end users.
ABx expects Alumin’s investment will fund all operations associated with mine and port
development.
The mine at Binjour will initially export 500,000 tonnes of bauxite in its first year of production, then scaling up to full operational capacity of two million tonnes. The product is then planned to be exported to customers in China and India.
ABx CEO Dr Mark Cooksey said he was pleased to sign this long-awaited agreement after experiencing a two-year delay due to COVID.
βItβs a great day to celebrate. We gratefully acknowledge how supportive the state and local governments, as well as the community, have been over the years,” Mr Cooksey said.
The mine is expected to operate for at least 20 years and will employ up to 50 direct staff which could also create other indirect employment opportunities.
“We are working closely with the local community groups to ensure engagement. This joint venture agreement allows us to progress the mine lease application process. Today is a momentous occasion for this project,” ABx Group State Manager – Queensland Mark Luca said.
ABx can now commence finalising the project approval process.
Company shares ended the day 3.85 per cent in the red to close at 12.5 cents.
