VBX Limited has announced significant enhancements to its Wuudagu Bauxite Project, increasing mining rates and securing $2 million in funding to support an expanded feasibility study.
- Mining rate increased from 6 Mtpa to 8-9 Mtpa
- Higher product mass recovery achieved through beneficiation improvements
- Preferred water solution shifted to a cost-effective bore field
- Co-location of barge loading and materials offloading facilities to reduce capital costs
- Managing Director provides $2 million in unsecured loan notes to fund DFS expansion
Enhanced Production Prospects at Wuudagu
VBX Limited (ASX, VBX) has revealed material improvements to the Definitive Feasibility Study (DFS) for its flagship Wuudagu Bauxite Project in northern Western Australia. The company is now targeting a mining rate between 8 and 9 million tonnes per annum (Mtpa), up from the previously planned 6 Mtpa, alongside a higher product mass recovery. These enhancements follow a substantial increase in the size and confidence of the Wuudagu Mineral Resource Estimate, underpinned by a 6,000-metre drilling program completed in 2025.
Such an increase in mining and beneficiation capacity is expected to optimise the use of existing surface mining equipment, improving operational efficiency and reducing capital intensity. The improved product mass recovery, reaching up to 80% at finer screen sizes, promises a significant uplift in annual production volumes, potentially exceeding 7 Mtpa of beneficiated bauxite.
Cost-Efficient Infrastructure and Water Solutions
VBX has also identified opportunities to lower capital and operating costs through infrastructure optimisation. The company plans to co-locate its barge loading facility (BLF) and materials offloading facility (MOF) at Guy Point, a strategic move that leverages deeper water access and reduces duplication of infrastructure.
In addition, hydrogeological studies and pump testing have supported the selection of a distributed bore field as the preferred water sourcing strategy. This approach is expected to be significantly more cost-effective than the previously considered seawater desalination plant, aligning with VBX’s commitment to responsible and efficient resource management.
Funding and Strategic Partnerships
To facilitate the expanded DFS scope and provide additional working capital, VBX’s Managing Director, Ryan de Franck, has personally provided $2 million in unsecured loan notes on favourable terms. This non-dilutive funding is designed to maintain the company’s tight capital structure during this critical phase of project de-risking and value creation.
Meanwhile, VBX is actively engaging with a leading global investment bank to finalise funding and offtake agreements with potential strategic partners. The company is attracting strong interest due to Wuudagu’s high-quality, low-silica bauxite, efficient logistics, and stable Australian jurisdiction; attributes that are increasingly sought after amid global supply uncertainties, particularly given the instability of bauxite supply from Guinea.
Outlook for Wuudagu and the Bauxite Market
With aluminium demand forecast to grow substantially over the coming decade, driven by decarbonisation and technological innovation, the timing of these project enhancements is notable. Wuudagu’s expanded scale and improved economics position VBX well to capitalise on rising global bauxite requirements, especially in key markets such as China, Southeast Asia, and North America.
The upcoming completion of the DFS in the first half of 2026 will be a pivotal milestone, providing further clarity on project viability and financing. VBX’s strategic moves to increase production capacity and secure funding underscore its ambition to become a significant player in the global bauxite supply chain.
Bottom Line?
VBX’s expanded Wuudagu DFS scope and strategic funding set the stage for a potentially transformative phase in its development journey.
Questions in the middle?
- How will the final Mineral Resource Estimates for Wuudagu D, E, and F deposits impact overall project scale?
- What are the terms and timelines for the anticipated funding and offtake agreements with strategic partners?
- How will the increased mining rate and infrastructure co-location affect the project’s capital expenditure and operating costs in detail?