Bauxite Resources MOU - Shandong Province needs Australian Minerals

Bauxite Resources Limited, (ASX: BAU) has signed a Memorandum of Understanding (MOU) with the Chinese‐based Shandong Provincial Bureau of Geology and Mineral Resources (“SDGM”). Bauxite Resources would contribute its knowledge, expertise and experience together with access to its 54 Exploration Licences (ELs) in the Darling Range covering approximately 11,000 square kilometres and databases of historical workings, while SDGM would pay for and carry out its own drilling and exploration in return for earning an interest in all mineral resources discovered other than bauxite, of which BRL retains exclusive rights. Chinese based Shandong Provincial Bureau of Geology and Mineral Resources (“SDGM”) have a State sanctioned mandate to actively source a variety of minerals throughout the world to support China’s, and in particular the Shandong Provinces industries and economic growth. The MOU essentially provides both parties with the framework to work together over the next three months to ascertain whether an agreement can be reached as to the suitable terms for a ‘farm in’ type arrangement. Ms Zheng Jinlan, Director-General of Shandong Bureau of Geology & Minerals, said, “As one of the fastest growing economies in China, Shandong Province has an enormous requirement for minerals to support its increasing strong economy." “One of the missions for this Bureau is to help find resources overseas for the factories in our province, including steel mills and alumina refineries. We have actually formed strong alliances with these companies and through this kind of alliance; we are able to raise funds for the future development of the resources we have found. Hence a win‐win situation for all parties,” said Ms Zheng. Earlier MOU signed by Bauxite Resources Earlier this month Bauxite Resources signed an MOU with Chinese alumina producer Shanxi Wusheng Aluminium Company for the supply of up to 2.8 million tonnes per annum of Direct Shipping Ore (DSO) bauxite. Bauxite is targeting a resource definition that will support an initial >2Mtpa DSO bauxite project in the highly prospective Darling Ranges, Western Australia. Darling Ranges is the largest producing alumina region in the world. This area supplies approximately 17.5% of the world’s alumina and is home to Alcoa’s (NYSE:AA) Huntly Mine, the largest producing bauxite mine in the world and the Pinjara Refinery the second largest refinery in the world. --www.proactiveinvestors.com.au