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Search for bauxite in Manjimup area

25th August 2008, 10:00 WST

Junior miner Bauxite Resources Limited is assessing the viability of a number of bauxite reserves in the Manjimup area as part of an ambitious exploration program in the State's South West.

The Perth-based company, which was established in May 2006 and listed on the Australian Stock Exchange in October last year, has applied for exploration licences at sites east of Manjimup and Greenbushes following similar efforts for sites west of both towns previously.

According to the company's website, the tenements cover "parts of areas which were previously explored for bauxite by Vam Ltd from 1969 to 1973", adding that "in 1970, Vam Ltd completed a resource estimation which had average grades of 34 per cent available alumina".

It is believed about 25 million tonnes of refinery-grade bauxite have been identified in previous studies in the area.

Bauxite Resources' foray into the world of bauxite exploration comes on the back of unprecedented demand for alumina - the commodity derived from bauxite ore - largely because of insatiable Chinese demand.

In its June quarterly results, the company said "BRL's exploration and business development strategy continues to be supported by the latest market data regarding the global, and in particular Chinese bauxite demand", citing Chinese Government figures putting bauxite import demand at an expected 31 million tonnes this year, up from 22 million tonnes in 2007.

Any possible future minesite in the Manjimup region would be developed on a direct shipping ore basis, where the company would export unrefined bauxite ore to Chinese refineries through the Bunbury port.

Company executive chairman Luke Atkins said the exploration plans for the Manjimup area were in their preliminary stages and he did not expect to have the licence application granted for at least the next six to 12 months.

However, he said the proximity of Manjimup and Greenbushes to rail and road infrastructure would loom large in considerations, acknowledging that the success of plans to reopen the Bunbury to Greenbushes railway line would be crucial.

The South Western Times has obtained correspondence from prominent lobbyist Neil Bartholomaeus in which he expresses concern about the development of a mine in the Warren-Donnelly catchment area.

"I am concerned strip mining for bauxite may impact on the interests of water users in these catchments by affecting the hydrology of tributaries which are the basis for surface water licences," Mr Bartholomaeus said in a letter addressed to Department of Water project officer Hazen Cleary.

DANIEL MERCER

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SOUTH WESTERN TIMES