
Metro Mining Ltd has signed a new binding contract with a major state-owned Chinese Aluminium Group. The agreement with the Group covers 420,000 WMT (wet metric tonnes) of bauxite to be delivered in the H2 of 2019. It means the company has sold approximately 90% of its planned 2019 production of 3.3 to 3.5 million WMT.

Metro’s Managing Director Simon Finnis said; “We are delighted to have finalised a new off-take agreement with a major State-Owned Chinese Aluminium Group whom, we believe, has the capacity to be another long term off-take partner. We have now successfully sold approximately 90% of Metro’s planned 2019 production.
This agreement highlights the particular interest being seen from refineries located in the inland provinces where supply of domestic bauxite has been hindered by recent mine closures and environmental audits.”
The Group owns alumina refineries in the provinces of Shanxi, Shandong, Guangxi and Guizhou. The bauxite will be delivered to the Shanxi Province Refinery, which is currently operating at below capacity due to reduced bauxite availability.
The Shanxi Province Refinery is planning to modify its refining conditions at the plant to match the processing requirements of the material from Metro’s Bauxite Hills Mine.
The agreement is based on market pricing with typical bonus and penalty clauses associated with the agreed product specifications.
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