Australian Bauxite lodges first bauxite Mining Lease application

THE BOURSE WHISPERER: Australian Bauxite (ABx) (ASX: ABZ) has lodged an Application for a Mining Lease with Mineral Resources Tasmania.

The company has also submitted a Notice of Intent to the Environment Protection Authority.

ABx executed a Term Sheet earlier this year with major Chinese aluminium company, Xinfa Group, which is currently conducting due diligence at the project having already completed a site review.

In consultation with Xinfa, ABx christened the Bald Hill bauxite project as its first mine, the name being derived from the lack of trees on the site.

 

Aerial photo of the mining lease application area (red) and surrounds. Source: Company announcement

 

ABx’s first mining lease application is over 173 hectares off Macquarie Road, west of Campbell Town in the northern midlands of Tasmania.

“Our first Mining Lease Application has been submitted on schedule and without a hitch,” Australian Bauxite managing director Ian Levy said in the company’s announcement to the Australian Securities Exchange.

“We see the first new bauxite mine in Australia for more than 35 years responsible for creating some 140 to 225 new jobs, generating a total payroll in excess of $9.8 million per annum.

“This will provide a great boost for the local community.”

ABx said a critical aspect to the application process is a Development Proposal and Environmental Management Plan, which the company expects to be submitted mid-2013.

Mining is planned to commence in the second half of 2014.