Asian Metal visits AK, Spring Energy, Beibu Gulf and Golden Prosperous Resources

BEIJING (Asian Metal) 15 Sep 15 - On September 14, 2015, Mr. Friday Gao, Base Metals Department Manager of Asian Metal visited Aras Kuasa Sdn. Bhd., Spring Energy Sdn Bhd, Guangxi Beibu Gulf Int'l Port Group Kuantan Office and Golden Prosperous Resources Sdn Bhd in Malaysia.

In the morning, Mr. Gao firstly visited Aras Kuasa and shared ideas on the bauxite market with Mr. Teh Teck Tee, managing director of the company. According to Mr. Teh Teck Tee, the supply unwashed high grade Malaysian bauxite Al 40%min Si 5%max has been shrinking, as the bauxite exploration in Kuantan goes too fast. If Indonesia resumes bauxite export, Malaysian suppliers need to provide with washed high grade bauxite Al 45%min Si 5%max, but it is not easy. There are now around 3-4 suppliers providing washed high grade bauxite at the moment. Meanwhile, he pointed out that Malaysian bauxite costs rose by USD3-4/t because of higher taxes, transportaion cost and license fee.

Mr. Gao also visited Mr. Yap Teck Sing, assistant to managing director of Spring Energy on Monday morning. Mr. Yap said that they have already exported around 1.2 million tonnes of bauxite since early this year. Their mine sites are around 40 kilo meters away from the Kuantan Port with freight cost at around RM15/t. He agreed that bauxite grade in Malaysia is decreasing. They supply around 100,000tpm of washed bauxite Al 46-47% Si 5%max with price firm at USD47-48/t FOB Malaysia. Spring Energy develops bauxite complying with the relevant environmental protection policy strictly.

In the afternoon, Mr. Gao visited Beibu Gulf and Golden Prosperous Resources. Mr. Joe Lim, representative of Beibu Gulf Kuantan Office disclosed that they have 40% investment in Kuantan Port, covering oil, iron ore and bauxite. Port expansion is under progress. Until 2017, Kuantan Port will be able to handle ships of up to 200,000 deadweight tonnes.

Mr. Toh Hoi Thong, general manager of Golden Prosperous Resources pointed out that they supply around 400,000t of bauxite on average each month. Their mine sites are around 50 kilo meters to Kuantan Port with freight at around USD7/t. According to Mr. Toh, Malaysian bauxite prices lack momentum to climb up, as there are not so many consumers and the major consumers control the price.