Metro Mining updates on Bauxite Hills environmental approval process

Metro Mining may be required to submit a full Environment Impact Statement for its Bauxite Hills project at Cape York, Queensland.

On 10th August, the company lodged its Site Specific Environment Authority Application for the project with the Queensland Department of Environment and Heritage Protection (DEHP). After some discussion and minor modifications, it was formally received on 17th August 2015.

The company has now being verbally advised by DEHP officers that they considered a full EIS would now be required for the project. While no formal advice has being received from the department that this is in fact its final position, Metro will now seek a formal inter-departmental review through the established process.

It is seeking specific justification for the heightened level of environmental scrutiny, the important considerations being:

- The Bauxite Hills Project does not trigger any of the legislated specific criteria that would require an EIS;
- Metro Mining commenced formal discussion with DEHP Officers in July 2014 and has never previously been advised that an EIS would be required;
- It is a very simple project with minimal environmental impact; and
- It is an important project for Far North Queensland and local communities.

Metro Mining is now reviewing its alternative timing strategy for the project and will provide further information as it becomes available.

Bauxite Hills Project

The Bauxite Hills Project has an Ore Reserve of 48.2 million tonnes with high grade total alumina of 50.2% and reactive silica of 6.3%. Metro has forecast total annual production of up to 2 million tonnes.

In August, the company signed a non-binding bauxite off-take Memorandum of Understanding with Xinfa Group - one of the largest integrated aluminium companies in China. The agreement contemplates a minimum contract tonnage of 1 million tonnes a year up to a maximum of 1.2 million tonnes a year over the initial five-year term.