Metro Mining’s Bauxite Hills Project aims to meet growing global demand for bauxite, particularly in China

Metro Mining's Bauxite Hills Project is located 5km south-east of the port at Skardon River and 95km north of Weipa in Western Cape Rock, North Queensland, Australia. The project is proposed to be developed with an estimated investment of A$33.9m (approximately $24m).

The pre-feasibility study (PFS) for the bauxite project was completed in February 2015, while the definitive feasibility study (DFS) was completed in November. The regulatory approvals are expected to be granted in late 2016, construction is scheduled to start in early 2017 and first production is anticipated in late 2017.

The project is estimated to produce 1.95 million tonnes per annum (Mtpa) of direct shipping ore (DSO) bauxite during its estimated production life of approximately 27 years. A scoping study for an improved 4Mtpa to 5Mtpa operation is currently being assessed.

The project will help meet the growing global demand for bauxite, particularly in China, as a result of the ban on bauxite export by Indonesia, the world's biggest bauxite exporter and one of the world's biggest bauxite producers.

Bauxite Hills Project geology and reserves

The project integrates two bauxite plateaus, namely BH1 and BH6, located adjacent to the Skardon River. The deposit type at the bauxite mine is lateritic bauxite derived from the weathering of aluminous sediments in a tropical to sub-tropical environment, with the mineralisation being flat lying and tabular in form at both locations.

The mineralisation at BH1 covers an area of approximately 6.7km², whereas BH6 covers a mineralised area of approximately 8.4km². The average thickness of the bauxite mineralisation is 2.2m in BH1 and 1.8m in BH6, whereas the average overburden thickness is 0.6m in the former and 0.2m in the latter.

As of June 2015, the mine was estimated to hold total resources of 53.6Mt at 50.6% alumina (Al2O3) and 6.3% reactive silica (SiO2), while the combined proven and probable reserves are estimated to be 48.2Mt containing 50.2% total Al2O3 and 6.4% SiO2.