THE BOURSE WHISPERER: Australian Bauxite (ASX: ABX) has struck up a business alliance with Rawmin Mining and Industries of Mumbai, India.
Australian Bauxite is currently targeting the shipment of 300,000 million tonnes of bauxite through to April 2016 for supply to Rawmin.
Rawmin Mining And Industries is an Indian-based, family-owned, professionally managed private company in the business of Mining, Beneficiation and Export of Metallurgical Grade and Cement Bauxite and Iron Ore.
According to Australian Bauxite, its associate companies own bauxite mines located in Jamnagar and Porbandar Districts of Gujarat State in India as well as a greenfield bauxite mining project being set up in the Maharashtra state.
ABX’s maiden shipment from Tasmania of 40,000 million tonnes is targeted for late September or in October 2015.
The two entities are cooperating to ramp up supply from Australian Bauxite’s Tasmanian projects to achieve 1.5 million tonnes annual bauxite production from mid-2017 onwards, with a 2016 target of 500,000 million tonnes.
The Alliance has an initial five-year term for supply of bauxite by ABX, while Rawmin will provide assistance with working capital finance, production and best practice quality control.
Bauxite is anticipated to be sold at market prices into China, India, the Middle East and Australia.
“Rawmin’s founders have been engaged in mining since 1951,” Australian Bauxite CEO Ian Levy said in the company’s announcement to the Australian Securities Exchange.
“Because of their growth from small beginnings, Rawmin clearly understands the needs of an emerging bauxite producer and is extremely generous in providing expertise and support to Australian Bauxite.
“Rawmin’s management are bauxite specialists with more than 60 years of delivering a quality-assured product to long-term customers.
“The business alliance with Rawmin will shorten the start-up period and accelerate ABX’s growth.”