https://www.miningweekly.com

Moly Mines eyes Qld DSO bauxite project with Gulf Alumina deal

22nd September 2016

By: Mariaan Webb

Creamer Media Senior Deputy Editor Online

  

Font size: - +

JOHANNESBURG (miningweekly.com) – Perth-based Moly Mines has set its sights on a direct shipping ore (DSO) bauxite project north of Weipa, in Queensland, announcing on Thursday that it will buy Gulf Alumina.

Moly will offer Gulf’s shareholders a combination of A$0.46 in cash and 1.4 options for each share they hold.

The proposed acquisition, which the board of Gulf unanimously recommended, provides Moly with an opportunity to develop a low-cost operation at the Skardon River project, positioning itself as an independent supplier of DSO bauxite into the seaborne Asian market.

In late 2015, bauxite developer Metro Mining made a play for Gulf, but the transaction fell through earlier this year.

Gulf undertook a definitive feasibility study early this year, which has highlighted the potential for commercial extraction of the bauxite at Skardon River. Gulf has proposed mining at an initial rate of  three-million tons a year and later increasing it to five-million tonnes a year, subject to market conditions. The project operational life is expected to be ten years.

Moly reported that it would aim to progress the project into production “as soon as possible”, noting that environmental approvals were at an advanced stage.

The mining leases for the project included existing infrastructure and allowed for improvements.

Meanwhile, Moly said that it believed that the demand for seaborne bauxite in China was growing. “Moly believes that Gulf is well positioned to take advantage of this increased demand, especially in light of recent bans on the DSO exports from Malaysia, Indonesia and the Philippines,” the company said in a statement.

If the Gulf offer is successful, Moly plans to operate Gulf as a subsidiary, but does not plan any changes to the board or senior management.

The combined group is expected to have assets of A$88.5-million and total equity interests of A$71.8-million.

Moly owns the Spinifex Ridge molybdenum/copper project, in Western Australia, which is on care and maintenance.

Edited by Creamer Media Reporter

Comments

Showroom

Environmental Assurance (Pty) Ltd.
Environmental Assurance (Pty) Ltd.

ENVASS is a customer and solutions-driven environmental consultancy with established divisions, serviced by highly qualified and experienced...

VISIT SHOWROOM 
Goodwin Submersible Pumps Africa (Pty) Ltd
Goodwin Submersible Pumps Africa (Pty) Ltd

Goodwin Submersible Pumps Africa is sole distributors for Goodwin electrically driven, submersible, abrasion resistance slurry pumps.

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Hyphen, Eva mine, ferrochrome price make headlines
Hyphen, Eva mine, ferrochrome price make headlines
27th March 2024
Resources Watch
Resources Watch
27th March 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.153 0.187s - 88pq - 2rq
Subscribe Now