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XINFA Aurum will continue bauxite mining to accumulate stock for later export
A drop in global bauxite price has slowed down bauxite shipment of XINFA Aurum Exploration in Fiji. However, the company says it will continue with its mining operation in Bua despite the price drop in order to accumulate its stock. Ministry of Lands and Mineral Resources Permanent Secretary Malakai Finau confirmed this saying that the company will continue mining and export the stock later when the commodity price improves.
He added that bauxite shipment last year declined due to low commodity price in China who is the primary buyer of the Fijian bauxite. Fijian bauxite which is not of premium quality has to compete with good quality bauxite from countries like as Australia, Mongolia and Indonesia.
According to the data from Bauxite Index, the Chinese domestic alumina prices have fallen from recent highs in the first quarter of 2017, as supply was ramped up to take advantage of the higher prices.
“Subsequently, it assumed that the bauxite export would be very similar to 2016 unless the price improves,” Mr Finau said.
Referring to the recent ASX announcement, he said that bauxite import will remain low in China as the country has suspended spot import for three months due to availability of cheaper DOM (Days on Market) supply and also because of the upcoming alumina capacity cut in Beijing during winter.
“One of the things that the company does is to wait for the right time to trade its bauxite so that it will have better returns,” He said.
“Mining is a high risk business and subject to volatile changes in prices as this and companies are well aware of such risks and do their assessment and preparation prior to applying for a Mining Lease,” he added.
He confirmed that there has been only one shipment of bauxite to China till date in March 2017.
He finally added that the low prices has not had much impact on the landowning community in Bua, who are involved in the pine business as well as in the mining project.Get fresh Aluminium data and insights
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