Metro Mining (ASX:MMI) is set to further increase volume in 2026, through debottlenecking at its Bauxite Hills Mine in Far North Queensland.
Speaking to Mining.com.au, CEO Simon Wensley says within the company’s expansion fully in place, “investors can expect a strong finish to the year”, as well as an increase of shipments totalling 6.5 million tonnes of bauxite.
“With current geopolitical background, Metro’s market reputation and offtake agreements with our established customers significantly de-risks uncertainty and provides a secure investment for our shareholders,” Wensley tells this news service.
During 2025, Metro continuously achieved new records of bauxite shipments, as in August, the company increased its production rate by 6% – totalling 753,101 wet metric tonnes at Bauxite Hills.
In July 2025, the company had shipped 714,000 wet metric tonnes of product from Bauxite Hills. In June 2025, 589,000 wet metric tonnes were shipped, as Mining.com.au reported.
During Q3 and year-to-date, the company achieved another record shipment, totalling 2.3 million wet metric tonnes and 4.1 million wet metric tonnes, respectively.
Wensley notes in Q2 2025, the Bauxite Hills site earnings before interest, taxes, depreciation and amortisation (EBITDA) generated $32 per tonne.
“Which also gives a sense of the cash generation potential of the business moving forward,” he adds.
Metro Mining also delivered a record net-profit after tax for H1 2025 of $120 million.
“In the second half, Metro has also continued to pay down debt to improve the balance sheet,” Wensley says.
A crucial material
Bauxite Hills has been operating since April 2018 and as of the end of 2024 had an estimated reserve of 77.7 million tonnes and a resource of 114.4 million tonnes.
The mine employs more than 300 people and in 2022 exceeded its Traditional Owner employment target of 30% and maintained an indigenous workforce of 35%.
Bauxite is considered a crucial material as it is the primary ore for aluminium – a metal essential for the aerospace, automotive, construction, and renewable energy industries. Over 90% of bauxite is processed into alumina, which is then smelted to produce aluminium metal.
In late 2024 and early 2025, global bauxite prices spiked due to severe supply disruptions from Guinea and reduced production in China. This comes off the back of Emirates Global Aluminium terminating its bauxite mining operations in Guinea following the government’s expropriation of its mine.
As Mining.com.au reported, slow global growth reduced global primary aluminium demand by 1.8% year-on-year to almost 18 million tonnes in Q1 2025.
Over this period, primary aluminium demand in China fell 2.4% year-on-year to 11 million tonnes.
Meanwhile, Indian and US industrial consumers accelerated primary aluminium consumption ahead of rising US tariffs. Cost-cutting efforts by automotive makers led to greater use of recycled aluminium and helped push secondary aluminium demand, representing a 5.1% increase to 6.7 million tonnes in Q1 2025.
Australian bauxite producers have lifted production in response to export bans from Indonesia and Guinea, according to the Department of Industry, Science and Resources (DISR) September 2025 Resources and Energy Quarterly.
Australia’s bauxite output rose by 1.7% year-on-year to 102Mt in 2024-25.
New bauxite projects and sustained output in existing mines are expected to lift Australian bauxite output from 102 million tonnes in 2024-25 to 10 million tonnes in 2026-27.
Metro Mining is an Australian mining and exploration company, based in Queensland.
Write to Aaliyah Rogan at Mining.com.au
Images: Metro Mining
