Metro Mining Ltd (ASX:MMI) has shipped one million tonnes of bauxite since beginning operations at its Bauxite Hills Mine north of Weipa in Far North Queensland on April 13, 2018.
The millionth tonne was loaded aboard the bulk carrier ISA OLDENDORFF as part of a 60,000-tonne shipment bound for Metro’s foundation customer Xinfa Group.
Metro’s managing director Simon Finnis said sales had been made to five different Chinese customers and 17 shipments had sailed since mining operations began.
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Managing director Simon Finnis.
“We have sold our total planned production for this year and have around 90% of next year’s production also covered,” he said.
“We are seeing particularly strong demand from refineries in inland Chinese provinces where supply of domestic bauxite has been hindered by recent mine closures and environmental audits.
“Our product specifications are well suited to the processing requirements of these refineries.”
Bauxite from the Bauxite Hills project.
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Brisbane-based Metro has a 4-year binding offtake agreement to supply Xinfa with 1 million tonnes this year followed by 2 million tonnes for each of the next three years.
Pricing under the agreement is linked to a well-established alumina price index.
Xinfa is one of China’s largest integrated aluminium companies with significant refining and smelting operations.
Production increasing
Metro is mining Bauxite Hills at an initial annual rate of 2 million tonnes and, subject to board approval and expansion capital, will ramp up to 6 million tonnes over the first four years.
The company has government approvals in place to mine up to 10 million tonnes per annum.
Loading bauxite onto a barge.
“Production at the Bauxite Hills Mine is steadily increasing and given current demand we are actively looking at ways to increase 2019 production above the current planned rates,” Finnis said.
The shipment of the millionth tonne is another milestone for Metro with the mine becoming a globally significant bauxite operation feeding the growing seaborne bauxite market in a relatively short timeframe.
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Last month Metro was recognised as Australia's leading Emerging Mining Company at the internationally recognised Diggers & Dealers Mining Forum in Kalgoorlie, WA.
Metro Mining’s Queensland projects.
Bauxite Hills has an estimated ore reserve of 92.2 million tonnes within a total resource of 144.8 million tonnes with an estimated 17-year mine life.