Tasmania's bauxite miner has entered a potentially game-changing agreement relating to supplying a new Chinese aluminium refinery.
Australian Bauxite Limited (ABx), which mines near Campbell Town and has other deposits in Tasmania, New South Wales and Queensland, said it had executed a memorandum of understanding for the sale of 0.5-1.5 million tonnes of bauxite per year to refinery builder Tianshan Aluminium.
Australian Bauxite's marketing partner, Rawmin, was the other party involved in the MOU.
Some of the bauxite would be expected to come from Australian Bauxite's potential mining operation at its Binjour Project, south-west of Bundaberg, in Queensland.
"Subject to satisfactory results from the planned trial mining and processing test work at Binjour, ABx ... and (Rawmin) are planning to commit to project development in late 2019, commencing with a mining lease application," Australian Bauxite said.
The company suggested the low-temperature refinery would also be supplied from Tasmania and by Rawmin's mines in India.
"Coordinated production and shipments from all three sets of mines will achieve a reliable, year-round delivery to the customer of bauxite at a consistent specification," Australian Bauxite told the ASX.
Sales slowed for Australian Bauxite in 2018.
It managed just $177,000 in revenue for the calendar year, compared to $1.98 million in 2017.