Photo by: Bloomberg
PERTH (miningweekly.com) – The share price of ASX-listed Australian Bauxite increased by nearly 10% on Monday, on news of cost reductions at the Stage 1 Alcore project to refine aluminium fluoride from bauxite.
An engineering and cost study, completed in February, reduced the cost estimates for the Stage 1 plant by more than 50%, to between A$5.5-million and A$6.5-million, compared with the A$12.5-million to A$16-million previously estimated.
Further cost reductions were also possible, and were being pursued aggressively, Australian Bauxite told shareholders.
“Alcore is looking more exciting at every stage, and would increase the profits from our very clean type of bauxite by a factor of 10 to 30 times. It’s a game-changer,” said CEO Ian Levy.
Stage 1 of the Alcore project, in New South Wales, consists of an engineering evaluation plan, while the Stage 2 operation will consist of a 50 000 t/y production plant, which will cost about A$50-million to develop.
The Stage 1 plant is set to start construction by mid-2018, and work has already started.
Australian Bauxite reported that financing plans would also be finalised before the end of June, noting that A$1.2-million has already been offered by sophisticated investors and a party that would supply services to Alcore, subject to documentation of the final plans.
The company has also received expressions of interest for the Stage 2 project financing, with one party also expressing interest to provide part-finance for the Stage 1 plant, should it be required.
Furthermore, Australian Bauxite has also received expressions of interest in two of the major co-products to be produced from the Alcore plant, namely Corethane and Silica Fume.
Australian Bauxite's stock jumped from A$0.11 to A$0.12 a share on Monday.