Metro Mining (ASX:MMI) has finalised multi-cargo offtake agreements for bauxite shipments, from the Bauxite Hills Mine in Queensland, across 2025 and 2026.
The move comes on the back of the $297.76 million market capitalisation company being awarded the Environment Award for its Legacy Kaolin Mine Rehabilitation for the Association of Mining and Exploration Companies (AMEC) 2024 Awards last night in Perth.
CEO Simon Wensley says the award is recognition of the technical and engineering execution of the project.
“We have rehabilitated a large tailings area, adjacent to a creek, which was left as a legacy on our lease from a previous mining project. This was achieved safely and efficiently by the site environmental and operations team whilst Metro was in turnaround mode, so its kudos to everyone involved at the Bauxite Hills Mine,” the CEO tells Mining.com.au.
In terms of finalising multi-cargo offtake agreements for bauxite shipments, Metro Mining, says this takes contracted offtake to 6.9 million and 6.1 million wet metric tonnes (WMT) in 2025 and 2026.
Under the additional agreements, a contract extension with Chinese private integrated aluminium company and Metro’s longest-term customer, Xinfa Aluminium Group, has been implemented.
A new contract has been made with China Aluminium International Trading Group, which Metro considers to be the trading arm of Aluminium Corporation of China. Another contract has also been made with a diverse chemical manufacturing group from Shandong Province, Shandong Lubei Enterprise Group General Company.
Wensley says “this high-quality portfolio of customers is a testament to Metro bauxite’s competitiveness and its technical service, commercial flexibility and efficient and large-scale logistics to establish a robust and low-risk market positioning”.
The detailed contract tenor, volume, and pricing terms are confidential. However, Metro says the offtake based on shorter-term pricing quotation periods is 80% in 2025 and 93% in 2026.
Metro adds the contracts are a blend of free on board and delivered cost, insurance freight (CIF), while some contain multiple options for further spot cargo.
The contracts of affreightment containing fixed charter and bunker rates with first class owners have been agreed for more than 85% of the agreed delivered CIF volume in each year to manage freight risk.
The Bauxite Hills Mine operates on the Weipa bauxite plateau, 95km north of Weipa near the coast on the Skardon River.
Metro Mining is an independent bauxite producer and explorer focused on its assets in Far North Queensland.
Write to Aaliyah Rogan at Mining.com.au
Images: Metro Mining
