Work to commence on Metro Mining’s Bauxite Hills Mine

<p>Metro Mining Ltd plans to commence construction of The Bauxite Hills Mine north of Weipa in July with mining operations and first shipment scheduled for April, next year.</p> <p><img style="vertical-align: middle; display: block; margin-left: auto; margin-right: auto;" src="http://www.alcircle.com/uploads/images/bauxite%20mine.jpg" alt="News" width="517" height="226" /></p> <p>Metro today released a Bankable Feasibility Study (BFS) confirming the Bauxite Hills Mine will become one of the largest independent operations within the internationally acclaimed Weipa Bauxite Region.</p> <p>The BFS highlights benefits Metro gained through its acquisition of neighbouring Gulf Alumina Limited late last year. Based on the now combined of Metro and Gulf Projects, the BFS has determined enhanced Reserves of 92 million tonnes (Mt) and Resources of 145Mt with a 17-year initial mine life.</p> <p>Existing environmental approvals and mining leases for the Gulf component of the project allow early works to commence with final environmental approvals expected by mid-year. Basic infrastructure including airstrip, haul roads, camp and port location are already in place.</p> <p>&ldquo;Once approvals are finalised we plan to commence mining at 2 million tonnes per annum (Mtpa) increasing to 6Mtpa over the first four years,&rdquo; Metro Managing Director Simon Finnis said.</p> <p>&ldquo;The BFS estimates 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,&rdquo; Mr Finnis said.</p> <p>The Feasibility Study which was completed by MEC Mining, is supported by a report from commodity research specialists CM Group which says total bauxite imports into China are forecast to increase from an estimated 52 million tonnes in 2016, of which 21.3 million tonnes came from Australia, to 136 million tonnes in 2026. Australia is well positioned to capitalise on risks facing other bauxite exporting countries.</p> <p>The CM Group Report says growth forecasts are driven by continuing solid demand from China&rsquo;s primary aluminium sector and emerging tightness in China&rsquo;s domestic bauxite supply. It confirms Metro&rsquo;s bauxite grades are likely to be attractive to Chinese refiners.</p> <p>Metro has secured a binding offtake agreement with China&rsquo;s Xinfa Group for 7Mt of bauxite to be delivered over the initial four years of mining. Transhipping, Native Title and Land Access Agreements were finalised last year.</p> <p>Metro&rsquo;s total tenement package on Cape York covers 2,505 square kilometres.</p> <p>{googleAdsense}</p> <p>Mr Finnis said there is potential to extend the mine through conversion of the existing Bauxite Hills resources to reserves, as well as from possible exploration success in the surrounding regional exploration tenements.</p> <p>Once fully operational, Bauxite Hills is expected employ up to 200 people with a 30% indigenous workforce target. Around 80 employees are expected to be on site at any one time.</p>