CRU’s team of aluminium and raw materials expert, in London and Beijing have sent the Company its latest Insight piece, which looks at the major opportunities for bauxite producers in light of Indonesia’s unprocessed minerals export ban. The main points are as follows:
1. The ban is not temporary and import-based refineries in China are becoming increasingly worried about future bauxite supplies.
2. Major opportunities exist for bauxite projects, particularly in Australia.
3. CRU predicts strong bauxite price growth and additional value generation in both bauxite and alumina moving forwards.
4. The probability of Indonesia deregulating bauxite exports is small for a number of reasons as outlined in CRU’s analysis paper.
The analysis draws upon CRU’s range of market analysis and asset by asset cost services including CRU’s new Bauxite and Alumina Long Term Market Outlook. This is a unique service which examines bauxite and alumina supply, demand, prices and long run marginal costs to 2040 along with almost 400 bauxite and alumina asset profiles.
The team at Queensland Bauxite are most excited to be at the right place in the right time. The Company intends to apply for a mining lease without waiting until the entire tenement is explored, with the goal of bringing cashflow to the Company as early as possible, which should add to shareholders’ wealth.
Pnina Feldman
Chairperson
BAU Price at posting:
16.5¢ Sentiment: None Disclosure: Unspecified
QBL Price at posting:
2.1¢ Sentiment: Buy Disclosure: Held
