Cape York miner Metro Mining has approved a $31.9 million growth pathway, including the use of an offshore floating terminal to boost capacity for its bauxite operation.

The company’s board has made its final investment decision on the expansion to 7 million wet metric tonnes per annum at the Bauxite Hills mine, 95km north of Weipa.

It believes it has found a superior option for its transhipping operation to previous plans to build a second floating crane barge.

Metro has procured an offshore floating terminal, ALM Tinka (below), that has been working off the coast of Guinea and offers rated capacity up to 2000 WMT/hr – with potential to target 30,000 WMT/day of bauxite.

Binding joint venture terms for ownership of the OFT have been concluded with current owner ALM Shipping, led by Louis Dreyfus Ports and Logistics.

Metro is to purchase a 50 per cent effective interest in the vessel for $US15 million, including mobilisation to Australia and a significant dry-docking refurbishment

The concept for the expansion of screening capacity at Bauxite Hills has been amended since the expansion Definitive Feasibility Study (DFS) in June 2022.

Metro is electing to install a new screening plant with a capacity of a 1500 WMT/hr, comprising an apron and a wobbler feeder.

This will replace one of the existing grizzly and vibrating screen plants, with the second being retained for backup, product blending and additional capacity.

Metro said the combined new wobbler and retained screen would have a nameplate capacity of about 2500 WMT/hr.

It is expected that adopting this alternate screening technology will increase the throughput rate and provide greater resiliency in handling wet product.

The total estimated capital cost of the expansion as set out in the DFS in 2022 was $28.3 million compared to an estimated capex of $31.9 million for the revised expansion pathway.

“It is exciting to now have the expansion pathway clear, fully approved, underpinned by offtake and financed,” chief executive officer and managing director Simon Wensley said.

“The established OFT and wobbler technologies are part of our continuing strategy to create more resilience, lower cost and increased upside optionality in our business.

“Additionally, the JV with Louis Dreyfus adds globally renowned and specialist expertise to our existing contract partner team.”

The expansion is fully underpinned by offtake and freight contracts through to the end of 2024.

Potential upside capacity available in the OFT and wobbler could underpin further expansion of Bauxite Hills to 8 to 9 million WMT, subject to establishing expansion performance and completion of a further study.