BAU's Western Australian Project and Progress in Operation of China's Export Bauxite Project

On December 2nd, Bauxite Resources Limited (BAU) owns 16,950 square kilometers of bauxite prospecting prospects in southwestern Western Australia (approved and pending approval). About 5% of the mineral rights in the area where the mineral rights are located belong to the landowner (referred to as “the owner’s minerals”). Most of the mineral rights (95%) of the mineral rights on the land belong to the state (referred to as "the country's minerals"). Most of the approvals of the owner’s minerals are small projects, and their applications and approvals are usually managed by local governments according to planning procedures. The local government must make decisions based on the “town planning plan” that it only applies to the county. Minerals belonging to the country are managed by the state department in accordance with the "Mining Law."

Current approvals The first batch of 43,000 tons of export bauxite test cargo that was recently shipped to China by BRL was collected from a piece of “owner’s mineral”. The land was approved by the local government of Chittering County, and the mining of this area is still continuing.

BRL submitted to the local government of Chittering County an application for further mining on a nearby “owner’s mineral” land on Stephens Road in Bindoon, hoping to allow it to extract and ship up to 5 million tons of direct exports annually from next year. Bauxite. This application is based on earlier legal advice and discussions with the county of Chittering. This application also appears to be consistent with other mining paving applications.

The application area only accounted for 1.1 square kilometers, and its bauxite quality was fully explored and documented. On November 25, Chittering County decided that the application was classified as "Industry-Mining" and therefore did not meet the Town Planning Plan 6 of Chittering County. There are other subsidiary reasons for this decision.

The discussion on the merits of this decision has not yet commenced, but this decision may affect the timing of the direct export of bauxite in the first half of next year.

I hope to make a further report after meeting with senior government agencies in the coming weeks, after China’s trip shows more results, and after the next board meeting scheduled for mid-December.