Sep 04, 2018

Metro has bauxite sales all sewn up for 2018

Metro has bauxite sales all sewn up for 2018

Metro Mining has announced a new offtake contract with China’s State Power Investment Corporation Aluminium and Electric Power Investment Co (SPIC), meaning 100 per cent of the expected Bauxite Hills mine production this year has been sold.

The contract is for 300,000 wet metric tonnes (WMT) of bauxite to be delivered in calendar year 2018 and follows a trial vessel previously delivered to SPIC.

“We are delighted to have finalised a new off-take agreement with SPIC, who have the capacity to be another long term off-take partner and to have successfully sold all of Metro’s planned 2018 production,” Metro managing director Simon Finnis said.

“This year shipments will be made to five different Chinese customers confirming strong demand for Metro bauxite in China. We are experiencing particular interest from refineries located in the inland provinces where supply of domestic bauxite has been hindered by recent mine closures and environmental audits. Our product specifications are well suited to their processing requirements.

“Production at the Bauxite Hills Mine is steadily increasing, and we are confident of reaching production guidance for this year.

“Given current demand we are actively looking at ways to increase 2019 production above the current planned rates.”

Metro said production at Bauxite Hills, 95km north of Weipa on Cape York, remained on track to meet 2018 calendar year guidance of 1.90-2.075 million WMT.

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