VBX (ASX:VBX) has signed a framework agreement with a major Chinese aluminium group for potential investment and bauxite offtake at its Wuudagu project in Western Australia.
The company entered a non-exclusive bauxite offtake and investment framework agreement with a Hong Kong subsidiary of a Chinese aluminium industry group.
The parties will negotiate terms for the Chinese group to provide investment for developing and operating a bauxite mining and export operation at Wuudagu.
The Chinese group would purchase between two and three million tonnes per annum of bauxite product. The intended investment will cover a material portion of construction and commissioning costs.
“Wuudagu’s attractive low-silica product quality, short and efficient logistics, expanding scale, and northern Australian location are highly desirable attributes for a bauxite supply source in the global aluminium industry,” VBX Managing Director Ryan de Franck says.
The framework also includes collaboration to explore, develop, and operate other bauxite projects in Northern Australia. This framework includes VBX’s Takapinga Project through potential investment, product offtake, and advance payment arrangements.
Investment amounts will be determined based on results from the Definitive Feasibility Study (DFS) and mutual agreement. Bauxite product pricing would be based on an agreed reference price index including quality adjustments.
“VBX has made a conscious decision to retain all rights to future products produced at Wuudagu and to seek to use these rights to provide an attractive funding solution to construct and commission the project,” de Franck adds.
The DFS is due for completion in mid-2026, with negotiation of full form agreements expected within 90 days.
VBX is a Western Australian bauxite explorer and developer advancing its flagship Wuudagu Bauxite Project in the North Kimberley region, with additional exploration tenure at the Takapinga Bauxite Project.
Write to JC Villarba at Mining.com.au
Images: VBX
