ABx signs Tassie offtake agreement
PERTH (miningweekly.com) – Bauxite project developer Australian Bauxite (ABx) has inked an offtake agreement with India’s Rawmin Mining and Industries over its Tasmanian output.
The offtake agreement covers all the 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.
ABx bauxite in excess of the contracted quantities would also be offered to Rawmin for first option.
Rawmin would be responsible for the shipping of the bauxite.
ABx said on Tuesday that the offtake agreement also provided for blended shipments of ABx and Rawmin bauxites on a profit share basis for any blending profits achieved.
“The synergies between ABx and Rawmin arise from the compatibility of our type of bauxite and will be of considerable benefit to our shareholders,” said ABx CEO Ian Levy.
“The offtake agreement provides us with certainty and enables us to confidently expand our operations.”
The Bald Hill mine, in Tasmania, went into production in December 2014 and ABx was targeting production of 440 000 t in 2016. Output would rise to two-million tonnes a year by 2017/18.
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