Hey Point Bauxite Project
British Marine Group controls a Bauxite producer in Weipa, Queensland, Australia. The Group acts as financier to the project, and has responsibility for all aspects of the project.
The Hey Point Bauxite Project is a bauxite mine 10 km south of Weipa, adjacent to the Embley River, at Hey Point. The project will produce approximately 4 million tonnes of product bauxite in the first mining phase. The reserve sits in the Western Cape York area, which is renowned for its extensive deposits of high–quality, export grade bauxite. The mine has been active since 2016, with some production taken place and product already exported prior to the start of the rainy season at the end of the year 2016. All regulatory and operational approvals are in place and active.
The project benefits from a simple, effective and cost effective approach, and will be a small scale open cut mining operation, producing approximately 1.6Mt of bauxite product per annum with mining only occurring in the dry season. Bauxite product is transported from the product stockpile via articulated dump trucks to a recival hopper on Hey Point. From there the product is conveyed along a pontoon to a self propelled barge on the Embley River. The product is then trans-shipped to a bulk carrier for transport to market.
The Group controls the access point and the infrastructure which is integral to the success of other third-party owned bauxite projects in the surrounding area, with more substantial reserves.
During 2018, the Group recommenced the mining operations and, using its commodity trading expertise, successfully marketed, sold and delivered bauxite to a number of first tier buyers based in China, in the process establishing strong relationships for future sales. The Group has utilised its first-class ship chartering and operations proficiency to substantially add value to the Hey Point Bauxite Project, through managing freight and bunker price risk, as well as operational risks. Additionally, the Group has identified key areas of investment where further efficiencies can be realised into 2019 and beyond in order to minimise the freight costs and increase the throughput going forward.
The Group owns and operates all of its own equipment at the Hey Point Bauxite Project. This is true across the entire logistics process from dozers and screeners to trucks, conveyors and the self propelled barge ("Iron Clad 1").