chat with luke atkins

Just like to share some main points discussed and responses with Luke Atkins of Bauxite Resources.
China's forecast bauxite imports:
In 2007 China was forecasting that by 2012 they would require to import 30mill tonnes of bauxite. In 2008 , China has now indicated that the bauxite import requirements for this year,(that's right, this year)will be 31mill tonnes. Bringing the 2012 forecasted amount and more forward to this present year.
China has previously relied on their own sources of bauxite which are significantly inferior and have required benification.Even then the resulting product is inferior and significant operational problems arise from "mud" left over. Chinese producers of alumina and aluminium are only now realising the greater potential and benefits of using superior bauxite. Superior product needs to be imported.

Bauxite Resources currently have in granted tenements and pending tenement applications 6625km2 of land:
As we know this land is "highly prospective bauxite ground", how prospective? 1 km2 at average 3m depth will produce approximately 5.4mill tonnes of bauxite. Now according to Luke ,bauxite now have over 8000km2 of granted and pending tenements.

Let your mind play with various figures and ave depths and see what impressive figures turn up.

Current price of bauxite is around $75 - $80 per tonne and expected to reach $115 per tonne according to some analysts. According to Luke Atkins comparable costs of mining bauxite to shipping status is approx $16.50 per tonne. $16.50 per tonne. Thats to extract , treat and transport to port for Direct shipping.

In Fill Drilling to targeted areas will begin September to prove up resource to Jorc Compliancy. Drilling will move rapidly as only shallow surface drilling required.

Scoping study has moved in house in order to expediate study.

Production to begin within 2 years.

Roadshow that was meant to be in late June is postponed at moment in order to consider tandem presentations with other companies.

Anyway thats about the extent of our conversation. Hope has been of assistance. Cheers to all.