Metro Mining signs binding agreement with Xiangsen Aluminium

Metro Mining Limited has signed a binding agreement for the supply of 790,000 Wet Metric Tonnes (WMT) bauxite for delivery in 2021 with Xiamen Xiangsen Aluminium Limited (Xiangsen Aluminium). The contract schedules tonnage from September through to December and is in addition to the company’s Offtake Agreement with Xinfa for 2.3 Million WMT in 2021.

“On 7 July 2021, Metro announced the signing of a Letter of Intent (LOI) with Shanxi Liulin Senze Aluminium for 1 Million DMT (approx. 1.1 Million WMT) in 2021 and the off-take of the first two shipments under that LOI. A further three 60,000 WMT shipments have been contracted and shipped during August, totaling 300,000 WMT to date,” Metro Mining said.

The agreement formalises the remaining volume under the LOI of 790,000 WMT. Both the companies are now in talks to expand the scope and volume of the 1 Million DMT LOI for 2022-2023 (plus a 1 year option to extend) announced on 7 July 2021.

“It takes the Bauxite Hills Mine to full capacity at the same time that the new Floating Crane arrives at site, allowing costs to be further optimised. Both parties have flexibility to defer 1 shipment depending on trial progress and performance of the new Floating Crane,” the company said.

Metro Mining Managing Director and CEO Mr Simon Wensley said: “Metro is delighted to have fully converted the LOI for 2021 into a binding off-take. Successfully working with Xiangsen Aluminium, Shanxi Senze and other refineries to convert to Metro product is a key part of our strategy to expand the market. It allows us to leverage our unique logistics position as the only supplier using Capesize vessels from Australia and deliver secure, quality, base-load raw materials to our customers. We look forward to finalising an expanded long-term LOI in the near future and then converting that to a binding contract to establish a long-term mutually rewarding partnership helping tounderpin our Stage 2 expansion.”