AUSTRALIAN BAUXITE LIMITED1
AUSTRALIAN BAUXITE LIMITEDSymposium Resources Road Show 24‐25 July 2012
Developing Three East CoastBauxite Projects
Bauxite is the ore for aluminium and alumina
ASX Code “ABZ”
Level 2 Hudson House 131 Macquarie StSydney NSW 2000 Australia
Phone: +61 2 9251 7177Facsimile: +61 2 9251 7500E: [email protected]
Ian Levy, CEOMob: 0407 189 122E: [email protected]
AUSTRALIAN BAUXITE LIMITED2
Market Fundamentals: New Industry StructureChina, India
Russia, China, India, Middle East, Iceland
Australia, Indonesia
1 tonne
Figure: Alumina Limited
Stronger bauxite demand
Seaborne trade to China
Aluminium hi productionnew, giant modern smelters
Especially China, Middle East
AUSTRALIAN BAUXITE LIMITED3
South America
Asia
ABx bauxite deposits Other bauxite depositsAlumina Refineries
West Pacific Dominance
Australia will supply China’s 38 huge refineriesIndonesia will supply less from 2014
EuropeAmerica
NorthEurope
Africa
Russia
Australia
Australia will start replacing Indonesian bauxite in 2014
AUSTRALIAN BAUXITE LIMITED
Alumina Refineries are huge investments China has largest, newest refineries – won’t slow down. China becoming increasingly reliant upon imported bauxite.
4Photo from Hydro presentation
Bauxite
AUSTRALIAN BAUXITE LIMITED
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China Bauxite Import Panic Over Indonesian Bans
Sources: C&M, MBC & China Customs
China’s Imports Rising Strongly to + 50Mtpa. Indonesian supply is “doubtful” after 2014 AUSTRALIA’S OPPORTUNITY IS NOW !
Australian
(Weipa)
bauxite pri
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Indonesian ba
uxite prices
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in Indo
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AUSTRALIAN BAUXITE LIMITED6
Alumina Refineries (8)
Australia Will Increase Bauxite SuppliesForecast
World’s largestalumina refineries
Aluminium Smelters (6 or less)
World’s largest bauxite &alumina production
Gove
Rio Investing $1.5 Billion to Export Hi‐Temp Bauxite to Chinese Hi‐Temp Refineries
DarlingRanges
MitchellPlateau(Dormant)
Others’ Bauxite Projects (6)ABx bauxite deposits (36)
Eastern AustralianBauxite Province
Binjour Project: Big Province
Goulburn ProjectTaralga etc FIRST PROJECT
Marubeni 35% of JV
Mainly too low grade to export.
Rio will export high temperature bauxite to China. ABx will supply sweetener, low temperature bauxite
30Mtpa
5Mtpa from ABx Lo‐Temp Bauxite to Lo‐Temp Refineries
??
Tasmanian ProjectsOfftake partner being approached
AUSTRALIAN BAUXITE LIMITED7
ABZ’s JORC Resources are Growing Strongly 1
MORE COMING: Target is 200 to 300 Million Tonnes. 1All deposits drilled to date produce premium quality DSO export bauxite
1. See JORC Statement Slides
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Cumulative Resources (M
illion Tonnes)
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nage
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Inverell maiden
Inverell update
Taralga maiden
Taralga update
Taralga update
Guyra maiden
Binjour maiden Inverell update
Taralga update
Binjour update
106Mt @ $60/t = $6.4 billion gross in‐ground
AUSTRALIAN BAUXITE LIMITED8
Corporate Details
12 mths ABZ shares A$ Board of DirectorsJohn Dawkins Non-executive ChairmanPeter Meers Exec & Vice ChairmanIan Levy CEO & Managing DirectorJacob Rebek ** Executive DirectorWei Huang Non-executive DirectorHenry Kinstlinger Company Secretary
** Chief Geologist Jacob Rebek is ex CRA (Rio) Chief Geologist, Led discovery team Century Zinc '93 & Eastern Australian Bauxite '06-09
ASX Code : ABZ Listed 24 Dec'09 at $0.20 Major Shareholders Shares %Shares 106.1 million Hudson Resources 45.6 million 43.0%Options 10.3 million State One Capital 7.4 million 7.0%Market Cap ($0.40) $42.4 million Soul Pattinson 3.7 million 3.5%Cash (mid Jul'12) $3.2 million = 1yr budget Top 20 Holders 76.4 million 72.0%Share range $0.30 to $0.84Avg Daily Volume 132,000 Shareholders 900
AUSTRALIAN BAUXITE LIMITED9
• Reach 100 million tonnes JORC Resources DONE106Mt already 1
GOULBURN BAUXITE PROJECT• Announce Pre Feasibility Study results End Aug 2012
• Mining Lease Application Process Commenced Feb‐Apr 2012
• Decision to Proceed to Bankable Feasibility? 3rd Qtr 2012
BINJOUR• Binjour Resource Upgrade DONE 29Jun’12
• Commence Pre Feasibility Studies 2013 ?
TASMANIA – NEW FOCUS
• Resource drilling & estimation Aug‐Dec 2012
• Scoping Study & ML Application Dec 2012 onward
Indicative Milestones Ahead
1. See JORC Statement & Exploration Target Statement Slides
AUSTRALIAN BAUXITE LIMITED10
• 135km rail to Port
• Goulburn Bauxite ProjectPrefeasibility StudyCompleted: positive
DSO Hi Grade: + 40% Al2O3
‐ 2.5% SiO2
Taralga Resources Increase 50% to 38m tonnes 1
Near Port Kembla
Wingello
TaralgaGoulburn
• Goulburn Bauxite JV with Marubeni: PFS Completed• New +30m thick bauxite zones discovered
1. See JORC Statement Slides
AUSTRALIAN BAUXITE LIMITED11
BAUXITES OF SOUTHERN NSW
2 to 3 m layer of “PDM‐DSO Bx” or emery‐bearing pisolithic bauxite.
Comprises 15% to 30% of 5 to 50mm pisoliths of “PDM” which are nodules of dense fused alumina & maghemite‐hematite dust in low‐density, high quality DSO bauxite.
2 to 4 m layer of DSO bauxite.
Gibbsite plus moderate levels of iron minerals, mainly hematite and limonite (little or no goethite).
Needs no processing – direct shipping bauxite (“DSO”) – see Definitions.
1 to 3m layer of white bauxite in places.
Gibbsite plus low iron (3% to 8% Fe2O3). May be refractory grade bauxite.
TERTIARY QUARTZ SAND OR CLAY BELOWPenrose NSW – old quarry. 14 December 201111
AUSTRALIAN BAUXITE LIMITED
Australia’s Thickest Bauxite Ever Found38 metres thick & still in bauxite
ABx discovered exceptionally thick bauxite at Mt Rae near Taralga in southern NSW in February 2012. The bottom of the bauxite has not yet been reached – the drill rig ran out of drill rods and a new, more powerful drill rig will be needed.
This thick zone has been carefully drilled and interpreted by ABx’s senior geologists. Potential extensions of this material have been identified and will be drilled, after intensive mapping.
12
>36metres
AUSTRALIAN BAUXITE LIMITED
Steel works
CoalTerminal
Pt Kembla Gateway
Car Jetty
Old Copper Smelter
Old Coal Terminal
Outer Harbour
GrainTerminal
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Port Kembla: major port capacity
Car Port
Coal Loader
Steel Works
Steel processing
Several Ports are competing for bauxite business
AUSTRALIAN BAUXITE LIMITED
Tellebang
Binjour ResourceUpgrade
Binjour project
Binjour South
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Excellent bauxite results at Binjour24.5 Million Tonnes 1
JORC Resource
High Grade 44% Al2O3Gibbsite 3% Rx SiO2
Easy production
Government‐industry study of rail & port upgrade
Leach conditions to measure available Al2O3 avl & reactive Rx SiO2 were 1g leached in 10ml of 90gpl NaOH at 143 degrees C for 30 mins. "Avl/Rx" ratio is (Available Al203)/(Reactive SiO2). "A/S" ratio is (Total Al203)/(Total SiO2). Values above 10 are excellent
1. See JORC Statement Slides
DSO Bauxite ResourcesResource category
Tonnes millions
Bauxite Thick-ness
Al2O3
Avl % 143o
Rx SiO2
%
Avl/Rx
RatioAl2O3
%SiO2
%A/S
RatioFe2O3
%TiO2
%LOI %
Yield %
Over-burden
m
Internal Waste
m
Inferred 9.0 3.9 m 38.0 3.8 10.0 43.7 4.5 9.7 22.4 3.6 24.2 59% 8.2 m 0.3 mIndicated 15.5 5.3 m 39.5 2.6 15.1 44.2 3.1 14.5 23.4 3.7 24.9 62% 9.4 m 0.3 mTOTAL 24.5 4.8 m 39.0 3.0 12.8 44.1 3.6 12.3 23.1 3.7 24.6 61% 8.9 m 0.3 m
Sieved at 0.26mm
AUSTRALIAN BAUXITE LIMITED
Large bauxite plateau at Binjour QLD
15
Layer
Bauxite
South Binjour Bauxite Plateau
AUSTRALIAN BAUXITE LIMITED
Large bauxiteplateau at Binjour QLD44 sq km ofbauxite layer is 15 times largerthan the 3 sq kmof JORC Resourceof 24.5Mt
Potential is massive
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7172000
7173000
7174000
7175000
7176000
7177000
7178000
7179000
7180000
3430
00
3440
00
3450
00
3460
00
3470
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3490
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Red = Indicated ResourcesOrange = Inferred ResourceMauve hatch = insufficient holes
Extent of bauxite layer over Binjour Plateau
Silica gel in the bauxite layer
Silica gel in the bauxite layer
AUSTRALIAN BAUXITE LIMITED
0 50
km
Exploration Licences
Rail lines
Major export port
Aluminium smelter
Coal mines
Port Latta
BurnieDevonport
Bell Bay
Launceston
Hobart
Legend
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Tasmania – the New Frontier.
• Cleared land – mainly plantation & grazing
• Landholder & localcommunity support
• New leases secure all viable deposits
• Heavy road & rail transport nearby
• Deepwater mineralexport ports at BellBay & Burnie
AUSTRALIAN BAUXITE LIMITED19
Tasmania – Good Resource Potential
50m
TASMANIAN BAUXITES Typical Cross‐sections From Small Part of Deposit Drilled
DSO Bauxite
DSO Bauxite
Clay‐Bauxite MixClay‐Bauxite Mix
? ? ?
DSO Bauxite
DSO Bauxite
Clay‐Bauxite
Mix
Clay‐Bauxite MixClay‐Bauxi
te Mix
Bauxite
? ?
10m
350m apart
AUSTRALIAN BAUXITE LIMITED20
JORC Code Compliant Public ReportsThe Company advises that this presentation contains summaries of Exploration Results and Mineral Resources as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (“JORC Code”). The following table references the location of the Code -compliant Public Reports or Public Reporting on which the summaries are based. These references can be viewed on the ASX website and the Company will provide these reports, free of charge, to any person who requests it.
Direct Shipping OreIn this presentation all references to direct shipping ore ( DSO ) refers to the company ’s exploration objective of defining DSO grade mineralisation. The potential quantity and grade of exploration targets is conce ptual in nature, there has been insufficient exploration to defi ne a Mineral Resource and it is uncertain if further exploration will result in the de termination of a Mineral Resource.
Reference Issue Date Title of Notice as lodged with ASX
1 12/10/2011 Binjour Maiden JORC Resource
2 15/08/2011 Guyra Maiden JORC Resource
3 12/05/2011 Taralga Bauxite Resource Doubled to 25 Million Tonnes
4 06/12/2010 Taralga JORC Resource Update
5 02/09/2010 Inverell JORC Resource Update
Reference Issue Date Title of Notice as lodged with ASX
1 12/10/2011 Binjour Maiden JORC Resource
2 15/08/2011 Guyra Maiden JORC Resource
3 12/05/2011 Taralga Bauxite Resource Doubled to 25 Million Tonnes
4 06/12/2010 Taralga JORC Resource Update
5 02/09/2010 Inverell JORC Resource Update
Forward Looking StatementWhilst based on information from sources considered reliable, Australian Bauxite Limited ( ABx), its directors, employees and consultants do not represent, warrant or guarantee, expressly or impliedly, that the information in this document and presentation is complete or accurate. Tothe maximum extent permitted by law, ABx disclaims any responsibility to inform any recipient of this document and presentation of any matter that subsequent ly comes to its notice, which may affect any of the information contained in this document and presentation.
JORC and Competent Person StatementInformation herein relating to Exploration Results, Resources and Resource Targets is based on information compiled by Ian Levy BSc MSc who is a Fellow of The Australasian Institute of Mining and Metallurgy and a Fellow of the Australian Institute of Geoscientists. Mr Levy is employed by ABx as Chief Executive Officer.Mr Levy has more than five years experience relevant to the style of mineralisation and type of deposit being reported and to the activity which he is undertakingto qualify as a Competent Person as defined in the 2004 Edition of the ‘ Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’ (the JORC Code). This report is issued with the prior written consent of the Competent Person as to the form and context in which it appears.
Exploration Target StatementABx has an exploration target of 200 to 300 million tonnes of bauxite, based on Mineral Resources announced in mid 2010 of 35 million tonnes of bauxite at Inverell 4,5 from 15% to 20% of the known bauxite deposits on Exploration Lea se EL 6997 in northern NSW and 25 million tonnes of bauxite at Taralga 1,2,3 from approximately 50% of the bauxite targets on Exploration Lease EL7357 in southern NSW . In accordance with the JORC Code, readers are advised that “the potential quality and grade is conceptual in nature, that there has been insufficient exploration to define full Mineral Resources and that it is uncertain if further exploration will result in the determination of a Mineral Resource”. As first‐ pass drilling has proceeded across most of its tenements, ABx has seen no reason to vary its exploration target.
AUSTRALIAN BAUXITE LIMITED22
Why Mine Australian Bauxite? We do it better
A mined area at Huntly prior to rehabilitation
The same mine pit after rehabilitation
Alumina‐Alcoa’s Rehabilitation in WA
ABx endorses best practices on agricultural land, strives to leave land and environment better than we find it.
We only operate where welcomed.
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