Tasmanian bauxite miner in maiden sale

Tasmania's newest miner has locked in its maiden shipment after losing $1.04 million last year. Australian Bauxite Limited has had its first 40,000 tonne shipment from its Bald Hill Mine, near Campbell Town, ready since early December. However, the price crashed and a sale deal did not proceed.

On Tuesday, it announced a maiden shipment, with an initial cargo of 5000 tonnes to go in the last week of April.

"The customer is seeking a second, larger shipment of 30,000 to 40,000 tonnes once stockpile sites in the receiving port are approved," the company told the ASX.

"This is planned to occur within two months." It said the sale price was ‘’satisfactorily profitable,’’ but the amount was ‘’commercial in confidence’’.

Australian Bauxite chairman and former Tasmanian premier Paul Lennon described the bauxite market’s struggles in the company’s annual report, released before the sale was announced.

"… in fact, no bauxite sales from any new independent suppliers of bauxite was achieved worldwide since early December 2015,’’ he said. "Since then, the metallurgical bauxite market has remained closed to new entrants and depressed for long-term, established suppliers, big or small. The depressed commodity cycle that began in 2014 has reached bauxite, largely driven by the slowing of growth in Chinese industrial production. The company has had to adjust to the tough times that world events have visited upon us."

Mr Lennon said the company had started bauxite sales, with small sales to the fertiliser and cement industries.

"From this low base, sales can grow steadily and our company can establish solid earnings by the second half of 2016," he said.

The company said it was negotiating with potential customers in various countries for the maiden shipment. "Once the maiden shipment is sold, the mine can immediately recommence full-scale production and haulage of the subsequent shipments of bauxite from Bell Bay port," it said.

Mining was suspended at Bald Hill in January until the first cargo was sold. The company aims to resume mining when it has certain sales contracts. It said, small tonnage sales would continue and the mine would be able to resume production without delay.

The company has 33 bauxite tenements in Tasmania, Queensland and New South Wales.