Bauxite Resources (ASX: BAU) and Chinese partner Yankuang Corporation have formed a joint venture company to mine bauxite and construct and operate an alumina refinery in Western Australia.
Ten detailed agreements have been signed by the Bauxite Resource Joint Venture to refine Darling Range bauxite into alumina.
The proposed refinery would produce 1.1 million tonnes per annum (Mtpa) of alumina and refine 3.5Mtpa of Darling Range bauxite.
Yankuang will pay 91% of the refinery construction cost and receive 70% of the alumina product, subject to all necessary approvals and the decision by the parties to proceed under the Bankable Feasibility Study.
Bauxite Resources will fund 9% of the refinery construction cost and receive 30% of the alumina product.
Work towards site selection for the refinery will commence immediately.
Shareholders voted in favour of the agreement at the Annual General Meeting on 25 November 2010. The agreement is subject to the Australian Foreign Investment Review Board.
Yankuang Corporation is based in Zhoucheng, China, and has coal mining, coal-based chemicals, machinery manufacturing, electricity generation and aluminium as its main businesses.