VBX Ltd. has taken a step toward developing its Wuudagu bauxite project in Western Australia after signing a non-binding framework agreement with a Hong Kong subsidiary of a major Chinese aluminium industry group.
Under the agreement, VBX and the Chinese group will negotiate on a non-exclusive basis to secure funding for the construction, commissioning, and operation of the mine.
In return, the partner would purchase between two and three million tonnes per annum (Mtpa) of Wuudagu bauxite product under a long-term offtake arrangement.
The agreement also leaves room for broader regional collaboration, outlining potential joint investment and product offtake across other VBX exploration assets in Northern Australia, including its Takapinga bauxite project in the Northern Territory.
The Wuudagu project is being positioned as a strategic, low-silica bauxite supply source for global markets.
VBX Founder and Managing Director Ryan de Franck said: “Wuudagu’s attractive low-silica product quality, short and efficient logistics, expanding scale and northern Australian location are highly desirable attributes for a bauxite supply source in the global aluminium industry.
“This framework agreement with a major Chinese aluminium industry group provides a pathway to finalising a material funding solution for Wuudagu once the DFS is completed.”
The Chinese group’s investment is intended to cover a material component of the cost of constructing and commissioning a mining operation at Wuudagu.
The exact size of the potential investment will be determined following the completion of Wuudagu’s definitive feasibility study (DFS).
Both parties anticipate finalising and executing binding full-form agreements within 90 days of the study’s release.