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VBX has moved a step closer to developing its flagship Wuudagu Bauxite Project after signing a framework agreement with a major Chinese aluminium group that could deliver both project funding and a long-term bauxite offtake arrangement.
{alcircleadd}The non-exclusive agreement, signed with the Hong Kong subsidiary of the Chinese aluminium producer, establishes a pathway for the parties to negotiate investment in the development and operation of the Western Australian project.
Under the proposed arrangement, the Chinese group would purchase between 2 million and 3 million tonnes of bauxite per year, while also providing funding expected to cover a significant portion of the project's construction and commissioning costs.
Funding linked to project development
Investment commitments will be determined following completion of the project's Definitive Feasibility Study (DFS) and subject to mutual agreement between the two parties. Bauxite pricing would be based on an agreed reference price index, with adjustments reflecting product quality.
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VBX Managing Director Ryan de Franck said the Wuudagu project's low-silica bauxite, efficient logistics, expanding resource base and strategic location in northern Australia make it an attractive supply source for the global aluminium industry.
Broader collaboration planned
Beyond Wuudagu, the framework agreement also opens the door for the companies to explore investment and offtake opportunities at VBX's Takapinga Project in northern Australia, including potential advance payment arrangements to support future development.
De Franck said the company had deliberately retained ownership of future production rights at Wuudagu to help secure an attractive funding solution while maintaining long-term value from the project.
The DFS is scheduled for completion in mid-2026, with both parties aiming to negotiate definitive agreements within 90 days.
VBX is advancing the Wuudagu Bauxite Project in Western Australia's North Kimberley region while also exploring its Takapinga Bauxite Project.
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