According to a report on Thursday, January 14, Metro Mining is planning to recommence its operations at the Bauxite Hills mine project, which was shut for the wet season from mid-September 2020. The operation is expected to resume in April 2021 for deliveries restarting under the existing 7 million tonnes bauxite offtake contract with China's Xinfa Group.
Metro Mining witnessed a strong operational performance in early 2020 and thereby a good financial output with cash on hand and other receivables of $45.8 million, as of September 30, 2020. Sales revenue in the September quarter stood at A$61.9 million, generating site EBITDA of A$9.5 million.
Bauxite mining in the quarter was 1.062 million wet metric tonnes, while the shipment was 1.23 million wet metric tonnes bringing the year-to-date shipment to 2.481 million wet metric tonnes. The average price received was A$49.87 per wet metric tonne, with an average site margin of A$7.72 per wet metric tonne.
With this result, the Australia-based miner is confident to operate at an annual rate of 4 million tonnes. The miner is also confident as the bauxite sector is showing signs of improvement with aluminium and alumina prices recovering from the COVID-19 pandemic and expects to see an improved trading condition in 2021.
Imported bauxite prices CFR China (as per the CBIX Bauxite Index) closed the September quarter at US$46.00 per dry metric tonne.
Metro’s stage 2 expansion plan for the Bauxite Hills mine project remains the core strategy for long-term development, depending on the outlook for global growth in 2021.
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