14 OCTOBER 2016Metro Mining Ltd Press Release
Metro Mining signs Binding Off-Take Agreement with China’s Xinfa Group
Edited by :
2 min read
<p>Metro Mining Limited has signed a binding off-take agreement for China’s Xinfa Group to purchase around half the Bauxite Hills Project production for the first four years of operation.</p>
<p>Bauxite Hills is located 95 km’s north of Weipa on Western Cape York. Environmental approvals are currently under consideration with production planned to commence in May 2018.</p>
<p>Metro forecasts production of up to 4 million tonnes per annum from Bauxite Hills, with a mine life of 13 years. The binding off-take agreement with Xinfa includes one million tonnes in the first year and two million tonnes per annum for the following three years.</p>
<p>{googleAdsense}</p>
<p>The Xinfa Group is one of the largest integrated aluminium companies in China with significant refining and smelting operations in Shandong, Guangxi and Xinjiang Provinces. Xinfa is currently a 4.3 per cent shareholder in Metro.</p>
<p>Metro CEO Simon Finnis says the agreement guarantees sales during the most important part of the operation and will underpin project financing efforts.</p>
<p>"This agreement shows the strong relationship and exceptional good faith between Xinfa and Metro Mining. It is a strong endorsement of the quality of our bauxite and shows the confidence Xinfa has in our progress towards production.” Mr Finnis said.</p>
<p>Mr Finnis says signing the Agreement is the latest significant event in a year of great progress for Metro. Other major achievements have included:</p>
<ul>
<li>Receiving $8.9 million funding from UK based Greenstone Resources, with an additional US$20 million of follow-on equity support available for construction of the Bauxite Hills project.</li>
<li>Acquisition of 39 per cent of the shares of Gulf Alumina, who hold an adjacent bauxite project with a similar reserve size as the Bauxite Hills project;</li>
</ul>
<p>“Our focus is now on completion of the Definitive Feasibility Study (DFS), achieving permitting approvals and undertaking pre-development work,” Mr Finnis said.</p>
Previous article
Nalco reports 24% jump in bauxite mining during H1 of FY17
Next articleCBIX steady, alumina soars, freight rates up
Grow with
AL Circle
