ABx Group (ASX:ABX) is in talks with several parties regarding offtake, direct investment, and the possible purchasing of an asset for its Binjour and Taralga bauxite deposits in Queensland and New South Wales, respectively.
The company has been approached by undisclosed third parties and is continuing to intensively evaluate options for both projects, with a data room established.
A data room has been established and the company will continue to assess its options for the projects.
Given the shortfall in global bauxite supply and the favourable quality and logistic settings of the ABx bauxite deposits, the company is actively pursuing several options for monetisation of these bauxite assets. This includes updating mine studies to prioritise an earlier commencement of production.
The plans for the Tasmanian bauxite resources remain unchanged. ABx plans to commence bauxite mining at the DL130 Bauxite Project, and assessment of the mine lease application by Meander Valley Council, the EPA and Mineral Resources Tasmania is in progress.
The primary products are likely to be cement grade and fertiliser grade bauxite. In September 2023, an agreement was executed with Adelaide Brighton Cement Limited (ABCL), a subsidiary of Adbri (ASX:ABC), for the supply of cement-grade bauxite to ABCL’s Birkenhead cement manufacturing operation in South Australia.5
The agreement forecasts supply of 90,000 to 120,000 tonnes of bauxite over a five-year term. In ongoing discussions with ABx, ABCL remains committed to the supply agreement.
The Binjour deposit, located 200km by road southwest of Bundaberg port, has a resource of 37 million tonnes of gibbsite-type metallurgical bauxite. Part of the resource is likely suitable as direct shipping ore with no beneficiation required.
ABx is assessing how quickly the project can begin production potentially during this year.
Meanwhile, the Taralga deposit, located 200km inland from Port Kembla, has a resource of 38 million tonnes of gibbsite-type metallurgical bauxite.
A Prefeasibility Study (PFS) was completed in 2012 which concluded that transport by road and rail was feasible. However, subsequent delays in the expansion of Port Kembla outer harbour were the main obstacle to the project.
The company notes recent changes in Port Kembla logistics have been positive and Taralga is now capable of delivering bauxite into the seaborne bauxite market and is being assessed.
Due to severe supply disruptions from Guinea and reduced production in China, global bauxite prices have increased.
The price of Guinea bauxite minimum 45% aluminium oxide cost, insurance, freight (CIF) China increased by almost 60% in less than four months from US$74 per tonne on 19 September 2024 to US$118 per tonne on 13 January 2025.
ABx says the bauxite market may be undergoing a transition similar to the iron ore market in the early 2000s. The iron ore market boomed in the early 2000s with companies such as Fortescue (ASX:FMG) making absurd share price gains and other mining giants like BHP (ASX:BHP) and Rio Tinto (ASX:RIO) cashing in on the generational uplift in the market.
ABx Group is an Australian company focused on bauxite, rare earths, hydrogen fluoride and aluminium fluoride.
Write to Aaliyah Rogan at Mining.com.au
Images: ABx Group
