The Bauxite Hills project in Queensland has been valued at $235 million by Metro Mining after feasibility results predicted a healthy production over the next 25 years with modest costs and a tight payback period.
Definitive Feasibility Study figures for the project showed that a simplified operation producing 2 million tonnes per annum of direct shipping ore earning $54.4 million annually at a low operating cost of $22.5 per tonne.
Scoping studies to optimise the operation toward a production rate of 4-5 million tonnes per annum are already underway.
This will be supported by Bauxite Hill’s resource of 53.6 million tonnes of DSO bauxite and 48.2 million tonnes of marketable DSO bauxite reserves.
Potential benefits of expanding the project beyond the initial scope of the DFS include a greater use of deployed capital, realisation of economies of scale and a stronger presence in the bauxite market.
The DFS is significant as it confirms Bauxite Hills as an attractive project that should deliver strong financial returns.
Bauxite Hills’ DSO product is considered to have high silica levels that make it suitable for low-temperature Chinese refineries, a critical end-user market. More than 80% of Chinese merchant refinery capacity is for low temperature and there are nine potential Chinese customers available to Metro.