Queensland Bauxite looks at freight options in NSW

ASX-listed Queensland Bauxite has started discussions with freight project developer Australian Infrastructure Developments (AID) regarding transport options for its New South Wales bauxite deposits.

AID was proposing to build a national freight infrastructure network providing a direct and unconstrained link connecting the western inland corridor at Moree with the Great Northern Railway at Glen Innes, and from there to the Port of Yamba. The company’s New South Wales bauxite tenement lies close to a section of the proposed new rail line.

Queensland Bauxite said on Thursday that the proposed Pacific West rail link was anticipated to create a viable bauxite export operation from the New South Wales bauxite project.

Meanwhile, Queensland Bauxite has told shareholders that the Queensland Department of Natural Resources and Mines was in the final stages of assessing an application for a mineral development licence at the company’s flagship South Johnstone bauxite project.

Although the application process had taken longer than initially anticipated, Queensland Bauxite was certain that the granting of the mineral development licence would help the company determine its ability to enter into the international bauxite market in the short term.

The South Johnstone project covers an area of about 400 km2 and has an exploration target of between 193-million tonnes and 405-million tonnes.

A December scoping study estimated that the project would require a capital investment of A$5.14-million to deliver about 800 000 t/y of product, at an operating cost of A$20.87/t.

The project was expected to generate yearly gross revenue of A$42.2-million and would have an internal rate of return of 223%.

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