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South Johnstone bauxite project, Australia

16th January 2015

By: Sheila Barradas

Creamer Media Research Coordinator & Senior Deputy Editor

  

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Name and Location
South Johnstone bauxite project, Queensland, Australia.

Client
Queensland Bauxite.

Project Description
A scoping study completed on the South Johnstone bauxite project indicates a technically low-risk, low-cost, highly profitable bauxite operation with significant free cash flows.

The study supports profitable bauxite production by initially mining higher-grade surface resources within the South Johnstone resource.

The project development plan envisages a staged production ramp-up starting at an 800 000 t/y operating scenario Stage 1 and then increasing production to between three-million tonnes and five-million tonnes a year in operating scenario Stage 2.

Net Present Value/Internal Rate of Return
The project has a net present value at a 10% discounted rate of A$75.67-million on the Stage 1 scenario and an internal rate of return of 278%.

Value
Capital expenditure is estimated at A$5.14-million.

Duration
Mine start-up is expected in the second half of 2015.

Latest Developments
The preparation of the report, relating to the upgrading of the South Johnstone resource underpinning the scoping study, is ongoing.

Drilling is under way, with the aim to upgrade as much of the inferred Joint Ore Reserves Committee-compliant resource to the indicated and measured category.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Queensland Bauxite, tel +61 2 9291 9000, fax +61 2 9291 9099 or email info@queenslandbauxite.com.au.


 

Edited by Martin Zhuwakinyu
Creamer Media Magazine Managing Editor

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