Metro ready to meet hungry market for bauxite

Cape York bauxite producer Metro Mining can sell every tonne it makes in this tight market and is pushing for increased prices, according to chief executive officer and managing director Simon Wensley. It comes as loan funds from Nebari Partners start to kick in, allowing the company to gear up for expansion measures to take its Bauxite Hills mine capacity to 7Mtpa. The company reports that the traded bauxite market continues to remain firm after a record 2022, with Chinese bauxite imports hitting 23.6Mt for first two months of 2023 - a 12.5 per cent increase year-on-year. Metro Mining has offtake agreements for up to 5Mt for 2023 and has secured Q2 2023 FOB equivalent price outcomes about 30 per cent higher than 2022 on open volumes. Mr Wensley said 2023 was a very important transition year for Metro, after recovery and resilience efforts in 2021 and 2022. "We have off-take contracts of up to 5 million wet metric tonnes in 2023 on the way to a target of 6-7M WMT for 2024," he said. "We intend to go as hard as we can to achieve these targets as at these levels the economies of scale of the Bauxite Hills operation really kick in. We have made a strong start to the year towards achieving 2023 targets." Post-wet season operations kicked off at the end of March month and Mr Wensley said the company planned to get two Capesize vessels away before the end of April, weather permitting. Multiple maintenance and upgrade projects have taken place over the shutdown period, including a barge loading facility upgrade and ore screening improvements to help achieve increased 2023 production targets. A new Scania trucking fleet has started to arrive at site and is undergoing payload trials up to 220 tonnes of bauxite. The Scania R770 prime mover is a V8, 16 litre, 770 hp (588 kW) specification with a Gross Combination Mass (GCM) of 360 tonnes. Metro said the truck had been specially modified for Bauxite Hills and was an off-road specification 8x4 wheel configuration with dual steer front axles. Additional trailers have been procured. Mr Wensley said securing the recently announced $US30 million Nebari Partners funding was incredibly important for Metro in pursuing its 7Mtpa expansion project. "Following receipt of first tranche of the loan funds last week, MMI is finalising project engineering and procurement for the remaining expansion components, the expanded transhipping assets and enhanced screening solution," he said. "The project team is working hard to finalise the design and procurement options ready for final investment decision by the Metro Board by the beginning of May. "The Nebari facility has been designed to be flexible and I’m pleased to say that the Northern Australia Infrastructure Facility has extended the financial close sunset date to 31 March 2024, subject to improved financial performance and credit approval."

Metro ready to meet hungry market for bauxite

Industry Queensland

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