Metro Mining Ltd (ASX:MMI) is continuing to make progress at its Bauxite Hills Mine in Cape York Peninsula, where all major marine infrastructure has reached practical completion.
These include the barge loading facility (BLF), marine offloading facility, cyclone moorings, navigational aids and tidal gauge.
Simon Finnis, managing director, said: “Our team and partners really need to be congratulated on a fantastic effort to get the major items of infrastructure complete, and commissioned in this timeframe.
“A special thanks must go to Transhipment Services Australia, who were the project managers for the BLF and marine infrastructure for a job well done.
“We are becoming increasingly excited about next year, and are confident we will be in production, as we have promised, early in Q2, 2018.”
Barge loading facility completed in 5 months
The BLF was recently wet commissioned with first product being loaded onto the conveyor system and into a barge.
The commissioning was a success with the BLF construction completed in only 5 months.
Project construction remains on budget and on track
The civils work package is progressing well and haul road construction is advancing.
The haul road to the BH6 deposit, where mining will likely commence, is complete. Work continues on the haul road to the BH1 deposit.
In the lead up to production, Metro will also commission the product sampling station and on-belt analyser which are used to support mining operations, specifically quality control.
The camp, fuel farm and other infrastructure remains on track for completion by the end of 2017.
Independent bauxite production in Cape York
Metro Mining is progressing towards becoming an independent bauxite producer in Cape York, a large remote peninsula located in Far North Queensland.
The company has already signed a binding off-take agreement with the Xinfa Group, one of China's largest integrated aluminium companies.
The agreement has a four-year term and provides for contract tonnage of 1 million tonnes of bauxite in 2018 and 2 million tonnes for each of the following three years.
SAB Mining is undertaking civil works during the mine construction phase, and have been awarded the bauxite mining and haulage contracts for the operational phase.
Metro Mining’s shares were last trading circa 6% higher intra-day, at $0.25.