Metro Mining Ltd continues to watch closely the market situations forth deciding to formally proceed with stage-2 expansion at the Bauxite Hills Mine in Far North Queensland in Australia.
In April’20, the company was instructed by the Queensland Treasury that the Queensland State Government would not exercise its veto right regarding the Metro Mining Bauxite Hills Mine Expansion proposal and supports its progression to the loan documentation stage.
This is one of the last key milestones for the facility and Metro is now well advanced in satisfying all remaining CPs and reaching the financial close of the facility. The timing for the formal commitment to stage-2 is being influenced by the uncertainty over the outlook for global growth and associated weakness in aluminium and alumina prices due to COVID-19 epidemic.
Despite, with funding now secured and key supply contracts negotiated, Metro will continue to monitor market conditions before deciding to formally proceed, as completion of stage-2 is not expected to occur before the second half of 2021.
As per the expectation of Metro Mining Ltd., production next year will likely be 4-5 million wet metric tonnes depending on the specific timing of commitment to stage-2.
The largest component of the stage-2 expansion to 6 million wmt is the construction and mobilisation of a floating terminal which will facilitate faster loading of larger ocean-going vessels.
Metro commissioned Rocktree Consulting, an international company specialising in transhipping and has been instrumental in the design, engineering and construction of more than 20 floating terminals to determine which floating terminal design is best suited to the Bauxite Hills Mine.
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