VBX signs bauxite offtake agreement with Chinese group

VBX has entered into a bauxite offtake and investment framework agreement with a Hong Kong-based subsidiary of a major Chinese aluminium industry group.

Under the framework, the two parties have expressed their intention to negotiate the terms of a potential investment by the Chinese group in the development and operation of the Wuudagu bauxite project, located in northern Western Australia.

The agreement also contemplates that the Chinese group will purchase an agreed volume of bauxite from the Wuudagu project, with annual offtake expected to range between two and three million tonnes.

Pricing for the bauxite products will be determined based on an agreed market reference price index, with adjustments applied to reflect product quality specifications.

VBX and the Chinese group have committed to using commercially reasonable efforts to negotiate, on a non?exclusive basis, the terms of the proposed investment and related arrangements.

Any final agreement will remain subject to the successful negotiation and execution of definitive full?form contracts, which are anticipated to be finalised within 90 days following the delivery of a completed definitive feasibility study for the Wuudagu project.