May 24, 2010 - Bauxite Resources' transition into production may be delayed by two years, as it awaits a decision from Australia's Environmental Protection Agency (EPA), the company managing director said.
The Western Australian explorer has appealed a public environmental review on 1.2 million tonnes of bauxite to be mined on private farmland over six months from July this year. But the review process could take two and half years to complete, Bauxite Resources managing director Daniel Tenardi said. "The grounds for Bauxite Resources' appeal against the decision include that the level of assessment is irregular and disproportionate compared with the level set for other similar scale larger scale projects," he said.
The review may also jeopardise the timing of 6 million tpy of bauxite to be mined from 2011 as well as the construction of a refinery, aluminium smelter and extrusion plant. Development of the company's downstream plans were expected to start in 2013.
"The EPA decision appears to have been taken on the basis of [our] potential future projects, rather than by reference to the relatively small-scale minimal-impact mining project referred to the EPA for consideration," Tenardi said.
The environmental concerns at the proposed mine, north of Bindoon in Western Australia, are minimal, Tenardi argued. "There is minimal clearing and we have full support of the land owners. When we finish mining an area we will put it back to its original state or plant pasture; it's the farmers' decision," he added.
The company recently shipped trial cargo containing 128,000 tonnes of bauxite to customers in China's Shandong province. The material was well-received and Chinese consumers would like immediate supply of their bauxite. Tenardi said, "Our major importers are excited about the material and want it now. All of the material was on spec and some was better than expected."
"The demand is there but we don't know when we can give it to them," he added. China's Yankuang Corp had its 8.42% stake in the company, worth A$9.85 million ($9 million), approved by Australia's Foreign Investment Review Board in January.
Yankuang, based in eastern Shandong province, produces mainly coal and more than 140,000 tpy of aluminium. Meanwhile, exploration is ongoing. "Our work continues. We continue to explore and talk with the government about the overall project," said Tenardi.
Tenardi is not opposed to the new federal tax on profits but said the proposed 40% super tax was exorbitant. "I'm not against a mining tax if it's less arduous and watered down," he said. "Considering we are a mid-cap company, it's not going to affect us now but it's going to hurt us eventually," he added.
China's demand for bauxite has increased this year as more smelters restore idle capacity and put new capacity on stream. For January-April, China imported 8.72 million tonnes of bauxite, up 114% year-on-year, with 23% coming from Australia, according to customs data released last Friday.
The Western Australian explorer has appealed a public environmental review on 1.2 million tonnes of bauxite to be mined on private farmland over six months from July this year. But the review process could take two and half years to complete, Bauxite Resources managing director Daniel Tenardi said. "The grounds for Bauxite Resources' appeal against the decision include that the level of assessment is irregular and disproportionate compared with the level set for other similar scale larger scale projects," he said.
The review may also jeopardise the timing of 6 million tpy of bauxite to be mined from 2011 as well as the construction of a refinery, aluminium smelter and extrusion plant. Development of the company's downstream plans were expected to start in 2013.
"The EPA decision appears to have been taken on the basis of [our] potential future projects, rather than by reference to the relatively small-scale minimal-impact mining project referred to the EPA for consideration," Tenardi said.
The environmental concerns at the proposed mine, north of Bindoon in Western Australia, are minimal, Tenardi argued. "There is minimal clearing and we have full support of the land owners. When we finish mining an area we will put it back to its original state or plant pasture; it's the farmers' decision," he added.
The company recently shipped trial cargo containing 128,000 tonnes of bauxite to customers in China's Shandong province. The material was well-received and Chinese consumers would like immediate supply of their bauxite. Tenardi said, "Our major importers are excited about the material and want it now. All of the material was on spec and some was better than expected."
"The demand is there but we don't know when we can give it to them," he added. China's Yankuang Corp had its 8.42% stake in the company, worth A$9.85 million ($9 million), approved by Australia's Foreign Investment Review Board in January.
Yankuang, based in eastern Shandong province, produces mainly coal and more than 140,000 tpy of aluminium. Meanwhile, exploration is ongoing. "Our work continues. We continue to explore and talk with the government about the overall project," said Tenardi.
Tenardi is not opposed to the new federal tax on profits but said the proposed 40% super tax was exorbitant. "I'm not against a mining tax if it's less arduous and watered down," he said. "Considering we are a mid-cap company, it's not going to affect us now but it's going to hurt us eventually," he added.
China's demand for bauxite has increased this year as more smelters restore idle capacity and put new capacity on stream. For January-April, China imported 8.72 million tonnes of bauxite, up 114% year-on-year, with 23% coming from Australia, according to customs data released last Friday.
