An Australian bauxite developer Metallica Minerals Ltd. reportedly announced today, on November 9, that it signed an agreement that would allow the construction of a haul road to link Metallica’s Urquhart Bauxite project and the barge loading facilities at the nearby Hey Point in Queensland.
This was standing as a barrier between Metallica and its efforts to secure a Mining Lease for the haul road. So, now when the agreement is signed, Metallica is believed to step on its road to success. It has now met all the requirements for the granting of the lease and is expecting to begin production in the first half of 2019.
The news came amid the growing demand for bauxite across the globe. China has been looking for supplies as its own supplies fall thanks to a crackdown on illegal and environmentally damaging operations. The country secures half of its bauxite from domestic sources and imports the rest.
According to CM Group, Chinese demand for bauxite will increase by 65 to 70 million tonnes annually in the next five to seven years because of the upcoming alumina refining capacities.
In this background, Australia is estimated to stand benefit.
Besides Urquhart Bauxite project, Metallica reportedly intends to merge with Canadian-listed Melior Resources that will expectedly make the company a diversified Queensland mining company with near-term production and a strong pipeline of future growth opportunities.
Responses
