FIRB approves Bauxite Chinese investment

The Foreign Investment Review Board has given the green-light for a Chinese entity to jointly own a proposed alumina refinery in the south west of WA with Bauxite Resources.

The FIRB also approved Yankuang Corporation to take an equity stake in Bauxite Resources valued at nearly $10 million.

The placement of shares to Yankuang comprised of 19.7 million shares priced at 50 cents each. Shares in Bauxite Resources were down six cents to 88c at 15:18 AEDT.

Both parties have also signed a memorandum of understanding over the proposed refinery, with agreements to be established relating to exploration, studies and development.

Under the proposed Alumina Refinery JV Agreement, Yankuang will contribute 75 per cent of the costs of the refinery to earn a 50 per cent interest. Bauxite Resources will receive a 25 per cent free carried interest and will fund a further 25 per cent to bring its interest up to 50 per cent.