Bauxite Resources grows Fortuna deposit in the Darling Range of WA
Bauxite Resources (ASX: BAU) shares are set to rise today after increasing resources at its Fortuna bauxite deposit in the Darling Range, Western Australia by 47% to 39.5 million tonnes at 37.3% AI2O3.
This comes as Chinese bauxite demand increases to 95 million tonnes by 2022 from the 38Mt in 2012, according to estimates by marketing group CRU.
Fortuna is located on a small number of large private landholdings located about 60 kilometres northeast of Perth and 10 kilometres from the town of Wundowie.
Notably, it is just 12 kilometres from existing railway infrastructure that provides a link to Kwinana Port.
The company added it is very encourage by the low total SiO2 of 5.2% observed in the deposit, and plans to investigate the impact of high temperature digestion, and the resultant available alumina achieved.
Fortuna lies to the southeast of the 147.3Mt Felicitas resource, confirming the northern Darling Range as a significant bauxite province.
The bauxite market is in the midst of a structural change that will see a number of new entrants into the market in the next decade, in the form of junior miners, according to CRU.
Australia is expected to dominate the group and become the largest exporter of bauxite to the Chinese import bauxite market which CRU forecasts reach 60 million tonnes in 2013 and 95 million tonnes by 2022.
This is up from the 38 million tonnes imported into China in 2012.
Indonesia is also expected to prevent increases to exports of bauxite from the country, leading to a likely drop.
Source: Proactive Investors