Metro Mining signs agreement with Transhipment Services Australia for floating crane barge at the Bauxite Hills Mine

Metro Mining Limited has signed a binding terms with its barging and transhipping partner, Transhipment Services Australia (TSA) for a floating crane barge at the Bauxite Hills Mine. The floating crane barge, which has been newly built and commissioned, will start operational in the 4th quarter of 2021.

Metro Mining Managing Director and CEO Mr Simon Wensley said: “Metro is pleased to have reached agreement with TSA for a floating crane barge to be added to the marine fleet servicing the Bauxite Hills Mine. Reducing shipping costs has been one of the major focus points for the incoming management team and conversion to Capesize vessels will significantly mitigate the risk that current ocean freight rates present. Metro greatly appreciates the initiative and support of TSA in helping to secure this opportunity and believe it will be an operational game changer and serve as a valuable asset to the company”.

The floating crane barge has a projected capacity of approximately 4.0 million WMT for the Bauxite Hills Mine operating season and conditions.

The company’s average freight rate using Ultramax vessels was US$24 per wet metric tonne (WMT) in Q2. By comparison Capesize vessels freight rates theoretically would have been US$12 – US$14 per WMT.

TSA will purchase the floating crane barge and is in the process of completing regulatory, technical and commissioning aspects in preparation for mobilization to the Bauxite Hills Mine.

“Metro’s expansion strategy to move to an annual production of 6 million tonnes and have the capability to load Capesize vessels remains unchanged,” Mtero said.