Metro Mining to seize benefits of upgraded mining approvals

Metro Mining says a decision by the Queensland Department of Environment and Heritage Protections (DEHP) requiring a full Environmental Impact Statement (EIS) for its Bauxite Hills Project is a setback but will provide considerable side benefits.

Metro Mining had submitted a detailed application for a Site Specific Environment Authority (EA). Company CEO Simon Finnis says whilst the DEHP decision will delay commencement of planned mining operations by at least six months, the company will use the time to maximise the opportunities that accompany the EIS process. These include:

• Removal of the 2 million tonnes per annum production limit – potentially allowing production to be more than doubled;
• Provision for the ability to increase the scale of operations to improve market significance of the project; and
• Realising economies of scale to achieve superior financial returns

“Importantly, much of the work required for the EIS has been completed,” Mr Finnis said. “Considerable effort has already been devoted to Mining Lease applications, resource estimates, the Pre-Feasibility & Feasibility Studies, documenting Environmental Data, Financing and Off-take and Native Title Agreements.

“The Definitive feasibility study for a 2Mtpa operation is to be completed by early October and we believe it will indicate very robust economics. Native Title negotiations are also in the process of being finalised.

“In addition, our Off-take negotiations with Xinfa, one of China’s the largest integrated aluminium companies, are advancing and supported by a non-binding Memorandum of Understanding,” Mr Finnis said

The company is also undertaking ongoing positive engagement with a range of potential financiers. Metro says it will request an inter-departmental review of DEHP’s decision. However, the company has already commenced development of the Terms of Reference, the first step in the EIS process.