Australian Bauxite Limited has signed a 5-year offtake agreement with India’s Rawmin Mining and Industries over its Tasmanian bauxite output.
Under the terms of the agreement, Rawmin is to buy 4.7 million wet metric tonnes of bauxite from Australian Bauxite Limited starting with 200,000 WMT to 31 March, 2016 and then ramp up to 1.5 million WMT per annum from 1 April, 2018.
“Rawmin is pleased to have concluded this offtake agreement with Australian Bauxite and we are sure that the years ahead will be productive and profitable to all concerned,” said Manesh Thanki, Managing Director of Rawmin Mining and Industries in an ASX Announcement.
“The synergies between Australian Bauxite and Rawmin arise from the compatibility of our type of bauxite and will be of considerable benefit to our shareholders. The Offtake Agreement provides us with certainty and enables us to confidently expand our operations. Our first shipment is now port side and ready for loading,” added Australian Bauxite Limited CEO Ian Levy.
Australian Bauxite Limited’s Bald Hill bauxite mine near Campbell Town – the first bauxite mine to open in Australia for 35 years – is set to provide the region with enormous economic benefits amid favourable market conditions caused by the worldwide shortage for the commodity.
The company expects to mine around 1.5 million tonnes of bauxite, the main ingredient in aluminium, which will be shipped through Bell Bay for both domestic and international markets.
