Bauxite Resources Ltd (BRL) primary focus has been on the acquisition, exploration and development of bauxite minerals deposits in Western Australia with the aim of capitalising on developing markets in China.
The key to commercial success in the mining sector is to have long term sustainable demand for your commodity. The Company is well positioned to take advantage of favourable market conditions.
To support the fundamentals BRL has recognised the importance of being ready to move and is now focussing on the commercial development of its bauxite resources to supply into the direct shipment ore (DSO) export to international customers.
Aluminium prices have been depressed due to a persistent global oversupply and high stocks of aluminium. However strong aluminium demand, rising costs of energy (accounting for ~40% of production costs) and raw materials (such as carbon and alumina) are forecast to lift the aluminium price in the medium term.
Growth in aluminium demand is expected to be driven mainly by a strong demand from China with Chinese aluminium demand forecast to grow. The constraints in May 2012 by the Indonesian government on export of unprocessed bauxite is forecast to increase bauxite prices, resulting in higher alumina and aluminium prices.
Aluminium has now become the second most used metal in the world after steel. Its unique combination of properties makes it suitable for many applications, especially in the automotive industry, due to its high strength-to-weight ratio. It is also unique in that it is 100 per cent recyclable, with nearly three-quarters of all aluminium produced still in use today.