Expanding world and Chinese demand for bauxite means there is real potential for the development of a direct shipping operation of bauxite from the Darling Range in south-west Western Australia, according to Bauxite Resources (BRL) chairman Luke F Atkins.

The Darling Range is an area responsible for 17% of the world's alumina production and is known to host some large undeveloped bauxite resources. The largest producing bauxite mine in the world, Alcoa's Huntly mine, and three out of Australia's five bauxite mines are in the area.

BRL will use $5 million from an Initial Public Offering to fund an exploration program focused on defining economic bauxite resources across its two Darling Range projects as well as another in the north of the state.

The company has received approval from the Australian Securities and Investments Commission to open its Initial Public Offering of 25 million shares at $0.20 per share.

The Muchea and South Darling Range projects are in the Darling Range and the Kimberley project is in the north. BRL has applied for 25 tenements covering more than 5459sqkm in these regions which reportedly contain existing bauxite resources. Bauxite is the raw material for alumina which in turn is smelted into aluminium.

The Muchea project covers part of an area in the Darling Range that was the subject of major exploration work with more than $2 million spent in the late 60s and 70s by CSR and Pacminex in a joint venture with Hancock and Wright. Previous work included an extensive drilling program, metallurgical test work, resource estimations and plant feasibilities. Tenements held by BRL in the project region also cover other significant areas of bauxite laterites identified by BRL.

In 2001 China imported 1 million tonnes of bauxite, in January 2007 it is reported that China imported 1.6 million tones for the month and analysts now believe that the rate of 2 million tonnes per month has been exceeded.
"In 2006, annual aluminium production in China reached 9.2 million tonnes and this volume is set to multiply as consumption in the republic increased by 47% year on year in the first quarter of 2007 alone."