Metro Mining (ASX:MMI) is in the process of mobilising to begin 2025 production and shipping at the Bauxite Hills Operation and Marine Divisions in Queensland.
In 2024, shipments totalled 5.7 million wet metric tonnes, which represents a 24% increase from the previous year. The planned shipments for 2025 are between 6.5 to 7 million wet metric tonnes.
Metro, which has a market capitalisation of $328.9 million, says with the operational mobilisation to site underway, the first ship-loading is targeted for 17 March 2025.
The early state of production and shipping activities has been enabled by the investment in operational practices and equipment, as well as completing its maintenance program. These practices and equipment are better able to cope with wet ore conditions, while also reducing environmental risks including the new wobbler screening circuit and Ikamba.
Metro notes remobilisation follows a period of annual maintenance activities focused on reliability at the higher operating rates, completed on-time and within the allocated $7 million budget.
The company says the projects included disassembling and demobilising the barge loader for refurbishment and strengthening, pontoon maintenance, along with repair works to vibrating screen plant #1.
On Ikamba, work included crane luffing cylinder replacement, stainless steel chute, and hopper fitting, as well as conveyor electrical upgrades.
Metro adds that most of its product are under long-term contracts with offtakers. As such, 75% of projected Q2 2025 volume is open to a quarterly pricing reset, with recent negotiations resulting in an increase for Q2 of over 25% in free-on-board netback pricing.
The average Q2 pricing will be influenced by the final achieved sales mix including legacy contract, any quality penalties, demurrage, and US exchange rates.
Traded bauxite pricing in the Asia-Pacific region has been volatile over the last three to four years, according to Metro. This is due to the influence of the alumina market which hit record highs in December 2024 and then corrected back quite rapidly.
Despite this, bauxite demand is growing to record levels with new Chinese coastal refinery capacity coming online and domestic bauxite supply in China continuing its downward trend.
In Guinea, production is up but is unpredictable due to the restrictions in place across several mines and their wet season approaching.
Further, bauxite pricing has remained strong relative to historical levels, with the Australian high temp spot benchmark sitting at US$78 per tonne cost, insurance, freight (CIF) China, as reported by Metro.
Metro Mining is an independent bauxite producer and explorer focused on its Bauxite Hills Mine operating on the Weipa bauxite plateau, 95km north of Weipa near the coast on the Skardon River.
Write to Aaliyah Rogan at Mining.com.au
Images: Metro Mining
