ABx delays Tasmania shipment as market is flooded with ‘cheap Malaysia bauxite’
PERTH (miningweekly.com) – First bauxite shipments from the Bald Hill mine, in Tasmania, have been delayed owing to the decline of bauxite prices, owner Australian Bauxite (ABx) said on Monday.
The first shipment had been scheduled to leave the Bell Bay port in November this year.
The company said that low cost and opportunistic bauxite exports from Malaysia had flooded the Chinese and other markets
“ABx holds the same view as its Australian peers, that the current irregular exports of bauxite and predatory pricing are not sustainable,” ABx CEO Ian Levy said.
“We have accumulated stockpiles of our first two shipments and production is continuing, but we cannot sell into this depressed market while our customers’ stockpiles are full of cheap Malaysian bauxite.”
Levy noted that despite reports to the contrary, ABx had all the necessary export licences in hand, and that the first shipment of Bald Hill bauxite was already at the port in Bell Bay.
The Bald Hill mine entered production in December 2014. ABx was targeting production of 440 000 t in 2016, which would rise to two-million tonnes a year by 2017/18.
In November this year, the company signed an offtake agreement with India’s Rawmin Mining and Industries, which would cover all bauxite produced by ABx in Tasmania for a five-year period and provided for Rawmin to buy some 4.7-million tonnes of bauxite, starting with 200 000 t in March 2016 and ramping up to 1.5-million tonnes a year from April 2018.
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