Metro Mining Limited has completed two binding offtake agreements from the company’s Bauxite Hills Mine in 2018 and 2019. The mine is located approximately 95 kilometres north of Weipa in Queensland.
Metro has stated that the two offtake agreements are for approximately 780,000 tonnes (give or take 10 per cent). Of this, approximately 580,000 tonnes are for shipments in 2018 and the remainder is, at the option of Metro, is scheduled for either 2018 or 2019. These two contracts are to be based on market pricing with typical bonus and penalty clauses associated with the bauxite specification. Alongside this announcement, word has been made that nearly 90 per cent of Metro’s planned 2018 production has now either been sold or is contracted for sale, along with 80 per cent of its 2019 production.
Sales have been made into Henan Province (inland China) where the supply of domestic bauxite has been hindered by recent mine closures. Despite these recent closures, Metro has commented that these sales confirm the rising demand for Metro bauxite in China, with shipments on track to head towards four Chinese customers (including foundation customer Xinfa).
“These agreements are particularly pleasing as 2018 is now largely covered to a number of different customers, and we’ve started to sell material for next year. It demonstrates the strong demand for our bauxite in the Chinese market and supports our growth and marketing strategy. The mine continues to perform well with all commissioning issues well and truly behind us, and production continues to increase month on month,” commented Metro Mining’s Managing Director, Simon Finnis.
The Bauxite Hills Mine plan is based on 92.2Mt reserves, which could equate to a 17-year mine life. The mine currently employs up to 200 people, with an indigenous workforce of approximately 30 per cent.
More information on this project and any other updates can be found here.