Mitsubishi Corporation (MC) has reached an agreement with Glencore Plc to acquire a 30% interest in the Aurukun Bauxite Project in Australia, currently wholly owned by Glencore.
In addition to MC's existing aluminium smelting and trading operations, this acquisition marks MC's first investment in the mining of bauxite, a raw material of aluminium.
MC's mineral resources group conducts business through investment and development of resources such as iron ore and aluminium, in addition to its core operations in metallurgical coal and copper, aspiring to improve global outcomes by contributing to the transition to a low-carbon/decarbonised society, and to create new values through digital transformation (DX). With its unique lightweight properties and ability to be endlessly recycled, aluminium plays an important role in reducing greenhouse gas emissions, of which a particular case is when it is used to manufacture electrical vehicles where the lightness of material is integral. As the metal commonly used in construction such as sashes, walls and roofing materials, as well as a lightweight material for automobiles to increase fuel efficiency, the global demand for aluminium has nearly doubled over the past 10 years and is expected to continue to rise in the mid to long term.
The project is an undeveloped bauxite mine located in Queensland, Australia. Glencore is currently assessing the feasibility of developing the mine, and MC believes that this is a promising asset with competitive resource volume and production costs. MC's view is that early stage development of the mine is feasible through joint operations with resources major Glencore.
Subject to the satisfactory regulatory process, including the approval from the Queensland Government, Mitsubishi Development Pty Ltd (MDP) – a wholly owned subsidiary of MC – will hold a 30% interest in the asset. By utilising its expertise in the mining business in Australia, and working together with Glencore to conclude the feasibility studies, MDP will aim to reach a final investment decision (FID) on development of the mine during 2022.
Read the article online at: https://www.globalminingreview.com/mining/22032021/mitsubishi-purchases-share-in-glencores-aurukun-bauxite-project/