Finance Jan 25--Bauxite Resources Ltd has formed a joint venture company with a Chinese group in another step towards its hopes of building a new alumina refinery in Western Australia.
Bauxite Resources and China's state-owned Yankuang Corporation have signed 10 detailed agreements and formed a joint venture for a proposal to mine bauxite and construct and operate an alumina refinery.
Shares in Bauxite Resources jumped on news of the deal, closing up three cents, or 12.5 per cent, at 27 cents.
The companies hope to build a refinery in the southwest part of Western Australia to convert Darling Range bauxite into alumina.
"Work towards site selection for the refinery will commence immediately," Bauxite Resources told the stock exchange.
Under the agreements between the companies, Yankuang will pay 91 per cent of the refinery construction costs and receive 70 per cent of the alumina product.
Bauxite Resources will fund the remainder of the costs and receive 30 per cent of the plant's alumina output.
Bauxite Resources chairman Barry Carbon said the agreements were a significant step forward towards the development of the proposed refinery.
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