VBX Limited (ASX: VBX) has reaffirmed the mineral resource and ore reserve estimates bolstering its Wuudagu Bauxite Project in its October 2026 corporate presentation. The company confirmed that the material assumptions and technical parameters supporting the estimates, production targets and related forecast financial information remain unchanged.
Wuudagu's Measured and Indicated (M&I) Mineral Resource stands at 131.9 million tonnes, with a staggering 108 per cent surge from the 2025 drilling programme, while an expanded Definitive Feasibility Study (DFS) is targeted for completion in the first quarter of 2027.
China and Guinea shaping Australia's bauxite price structure
Australia remains a major bauxite exporter but has limited influence over global pricing, with China's import demand and Guinea's supply position playing a central role. Australia produced around 102.4 million tonnes of bauxite in 2025 and exported 44.23 million tonnes worth AUD 3.575 billion. Exports of about 45 million tonnes are forecast for 2025–26.
Australian bauxite was valued at USD 95 per tonne in Q2 2025, then dropped to USD 75 per tonne in Q3, USD 76 per tonne in Q4, and USD 75 per tonne in Q1 2026, according to IMARC's pricing series. Its Q2 2026 outlook is USD 78 per tonne, driven by demand from China and Southeast Asia.
Australian CIF bauxite prices climbed from USD 54 per tonne to USD 82 per tonne during 2024 before rising to USD 95 in Q2 2025. Subsequent estimates indicate further softening as Mysteel reported USD 66.5 per dry metric tonne on 12 August 2026, while Business Analytiq's August index stood at USD 58.53. The China CIF range of USD 59–65 per tonne for March 2026 falls within this broader band. As of 2025, Australia's annual average FOB stood around USD 391 per tonne.
The price weakness has persisted despite supply disruptions, as Chinese inventories approached 90 million tonnes by late May 2026.
Wuudagu moves towards the next development stage
VBX is finalising the expanded DFS, which is expected to incorporate project optimisation opportunities. Approvals are planned for 2027, with initial production targeted for 2028. The company also noted that 6.6 square kilometres of the Wuudagu G area remain undrilled.
The project aims to produce beneficiated bauxite grading 45.4 per cent Al2O3 and 3.6 per cent SiO2 through on-site beneficiation. The mining and beneficiation throughput rate under evaluation in the DFS is 8–9 million tonnes per annum (MTPA).
VBX's 2025 Preliminary Feasibility Study (PFS) highlighted low initial capital expenditure and first-quartile operating costs. The cited ore reserve estimate was prepared by Daniel Donald (MAusIMM), principal consultant at Entech, and included in the Replacement Prospectus lodged with ASIC on 16 May 2025. Production targets and forecast financial information were sourced from the May 2025 Independent Technical Report.
Resource assumptions remain unchanged
VBX referenced its Wuudagu mineral resource estimates in company updates dated 20 January 2026 and 5 February 2026. The company confirmed that no new information or data has materially affected the mineral resource or ore reserve estimates, and that the key assumptions and technical parameters supporting them remain valid.
Beyond Wuudagu, VBX owns the Takapinga Bauxite Project in the Northern Territory, covering 1,118 square kilometres and described by the company as a significant bauxite exploration opportunity.
Where VBX fits into Australia's bauxite outlook
VBX remains a potential future supply source of Australian bauxite prices. With its DFS targeted for Q1 2027, approvals planned for 2027 and first production expected in 2028, suggesting that the Wuudagu Bauxite Project would likely not affect Australia's 2026 market pricing.
Its significance is scale and timing. The 8-9 MTPA throughput under evaluation equals roughly 18-20 per cent of Australia's 2025 exports and about 4-4.5 per cent of China's 2025 imports.
The impact will depend on the 2028 market, if Guinean supply normalises and Chinese stocks stay high, the extra tonnes add to supply and cap prices. However, if Guinea bauxite export volatilities persist, the tonnes strengthen Australia's role as an alternative supplier.
Note: This article is published in accordance with an article exchange agreement between Mysteel and AL Circle.
