Metro Mining Limited has announced that it is moving into the planned 2020 wet season shutdown earlier than usual. The decision has been made given the ongoing pandemic of COVID-19 which continues to have an adverse impact on the market demand and price in the aluminium industry.
Mining at the Bauxite Hills Mine in Queensland has already started to ease off and shipping is expected to stop earlier than usual in mid-September until April 2021, said the company in a statement.
Metro reasoned that the travel restrictions hampered the company’s ability to finalise offtake contracts.
“We are extremely disappointed that despite a record performance from the teams on-site, and the efforts of our marketing team we have been unable to secure further sales that would have meant a very successful operating year for Metro,” company managing director Simon Finnis said.
“We live in very challenging times with many factors outside of our control. This decision has not been taken lightly and we will do all we can to assist our people and all stakeholders.”
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However, Finnis is optimistic about the market recovery. He cited that China is seeing a recovery across its aluminium supply chain. The aluminium and alumina prices are also returning to near pre-COVID-19 levels.
Meanwhile, negotiations for bauxite sales are continuing and if additional sales are secured for 2020 delivery then Metro can reopen the mine later in 2020.
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