MELBOURNE, Jan 14 (Reuters) - Australian Bauxite (ABX) said it...

MELBOURNE, Jan 14 (Reuters) - Australian Bauxite (ABX) said it has suspended production at its operations in the southern state of Tasmania after failing to lock in a buyer for its first shipment of the aluminium-making material.

"ABx is taking steps to conserve cash until a sale of its maiden shipment is achieved," it said in a filing to the Australian Stock Exchange on Thursday.

"This includes a temporary suspension of production and haulage of bauxite products from its Bald Hill Bauxite Project at Campbell Town, Tasmania at the end of this week until sales commence."

Australian Bauxite said its negotiations in China have been frustrated by large inventories of cheap Malaysian bauxite stockpiled by Chinese refineries over the past five months, and particularly over the last fortnight in the lead up to Chinese new year in early February.

China is the world's top producer of aluminium, and it has ramped up imports the world over since former top supplier Indonesia banned exports of the raw material in early 2014.

As Chinese producers began a global search for new suppliers, Malaysia jumped in to fill the gap. Its shipments to China surged nearly fourfold in November, and were up by nearly 50 percent in the first 11 months of last year on the year before.

Australian Bauxite said on Dec. 8 that its first shipments had been delayed due to low bauxite prices after Malaysia ramped shipments ahead of its rainy season.

Malaysia this month imposed a three-month ban on bauxite mining, following alarm over its environmental impact, in a move that could dent China's stockpiles.

The Australian company said it welcomed the suspension but uncertainty over future volumes from Malaysia remained "a confusing issue" in the Chinese bauxite market.

The company and its marketing partner are continuing negotiations with potential bauxite customers in China, India, the Middle East, Australia and elsewhere, it said.

Keyword AUSTRALIA BAUXITE/SUPPLY