30 MAY 2017Metro Mining Press Release
Metro strengthens sales agreements for its Western Cape York Bauxite Hills Mine
Edited by : Beethika Biswas
2 min read
<p>Metro Mining has significantly strengthened sales agreements for its Western Cape York Bauxite Hills Mine with the signing of an Oftake Letter-of-Intent with Lubei Chemicals - China’s fifth largest bauxite importer.</p>
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<p>In an announcement to the ASX today, Metro confirmed Lubei has signed the Letter-of-Intent for an initial 0.5 to 1.0 million tonnes per annum for 3 years commencing next year. A Binding Offtake Agreement is currently under negotiation. (See further details below)</p>
<p>Metro already has a four-year, 7 million tonne Binding Offtake Agreement with Xinfa Group. Xinfa is one of the largest integrated aluminium companies in China.</p>
<p>Metro’s Bauxite Hills Mine, 95 kilometres north of Weipa, is one of the largest independent projects within the internationally acclaimed Weipa Bauxite Region.</p>
<p>Existing environmental approvals and mining leases allow for early construction works to commence in July. Final environmental approvals are expected mid-year with mining operations and first shipment planned for April, next year (2018)</p>
<p>Metro Mining Managing Director Simon Finnis said the Lubei Letter-of-Agreement was yet another important milestone for Metro.</p>
<p>“Native Title and Land Access Agreements have been finalised. Our Bankable Feasibility Study released in March estimated an Ore Reserve of 92.2 million tonnes and total Mineral Resource of 144.8 million tonnes. The BFS estimates a 17-year life-of-mine revenue of A$5.7 billion and life-of-mine Earnings Before Interest Tax Depreciation and Amortisation (EBITDA) of A$2.5 billion.</p>
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<p>“Pre-commitment contracts including transshipping, barge loading facility and conveyors, new camp accommodation and marine piles and some vehicles have been let.</p>
<p>“Basic infrastructure including airstrip, haul roads, camp and port location are already in place,” Mr Finnis said.</p>
<p>Once fully operational, The Bauxite Hills Mine is expected employ up to 200 people with a 30% indigenous workforce target.</p>
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