Metro Mining has signed two offtake agreements with Xinfa, locking the Chinese-based aluminium producer into the company’s Bauxite Hills mine until at least 2025.
The two contracts lock Xinfa in for seven million dry metric tonnes of Metro’s bauxite product, assuming the Queensland-based miner commits to its stage-two expansion plans at the 3.5 million tonne per annum operation.
The first contract will begin in April 2022, delivering Xinfa with one million dry metric tonnes of Metro’s bauxite product by September.
The second will begin in October 2022, when Metro will deliver two million dry metric tonnes per year until September 2025.
Metro Mining managing director Simon Finnis said the company owed many thanks to Xinfa for helping progress the project.
“Xinfa was Metro’s foundation customer so these latest agreements are testimony to the extremely strong personal and business partnership that exists between Xinfa and Metro,” Finnis said.
“It is a relationship we value highly and will always endeavour to support and grow.
“Importantly, these contracts demonstrate Xinfa’s continued support towards Metro and its strategy around the stage-two expansion.”
In May, Finnis explained that stage-two expansions would involve the construction and mobilisation of a floating terminal to Skardon River, allowing faster ship loading.
“Metro’s stage-two expansion remains the core strategy for the long-term future of Bauxite Hills,” Metro stated in May.
April saw 120 local employees and 130 contractors return to work for Metro, following a scheduled shutdown for maintenance activities.
Finnis expressed his confidence in the timing of Metro’s maintenance activities, which allowed the reopening to coincide with increased market confidence.
Using the reopening as a platform for growth, Finnis said Metro would continue to search for improvements, as Bauxite Hills looked to ramp up over the next few years.
“We have implemented several operational changes that will improve efficiencies, and will continue to focus on mining and shipping rates and lowering operational costs, as we are always looking for improvements in our systems and processes,” Finnis said.