Metro Wins Industry Award and Finalises Bauxite Shipment Agreements

2 min read | November 08, 2024 03:37 PM AEDT | By Team Kalkine Media

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Metro Wins Industry Award and Finalises Bauxite Shipment Agreements — Image source: Shutterstock

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Highlights:

Metro Mining Secures Multi-Cargo Offtake Agreements: Metro Mining has secured additional offtake contracts for bauxite shipments from its Bauxite Hills Mine in Queensland, covering 2025 and 2026.

Environmental Recognition: The company received the prestigious Environment Award for its Legacy Kaolin Mine Rehabilitation at the AMEC 2024 Awards in Perth.

Expanded Customer Portfolio: Metro Mining has solidified contracts with key international partners, including Xinfa Aluminium Group and China Aluminium International Trading Group.

Metro Mining (ASX:MMI) has strengthened its position in the bauxite market with the finalisation of multi-cargo offtake agreements for bauxite shipments from its Bauxite Hills Mine in Queensland. These agreements, which span 2025 and 2026, bring Metro's total contracted offtake to 6.9 million and 6.1 million wet metric tonnes (WMT) for the respective years.

This strategic move follows a significant recognition for Metro Mining, as the company was awarded the Environment Award at the Association of Mining and Exploration Companies (AMEC) 2024 Awards in Perth. The award highlights Metro's successful rehabilitation of the Legacy Kaolin Mine, which involved restoring a large tailings area adjacent to a creek that had been left from a previous mining project. CEO Simon Wensley praised the environmental and operations teams for their efficient and safe execution of the project, particularly during a period of operational turnaround at the Bauxite Hills Mine.

In terms of the new offtake agreements, Metro Mining has secured extended contracts with Xinfa Aluminium Group, its longest-term customer, as well as new agreements with China Aluminium International Trading Group, the trading arm of Aluminium Corporation of China, and Shandong Lubei Enterprise Group General Company, a chemical manufacturing group based in Shandong Province. These partnerships enhance Metro's diverse customer base and solidify its market competitiveness.

The offtake contracts, which include both Free on Board (FOB) and Cost, Insurance, and Freight (CIF) terms, are structured with flexibility in pricing and shipping. Approximately 80% of the offtake in 2025 and 93% in 2026 is secured under shorter-term pricing arrangements. Freight risks are mitigated through fixed charter and bunker rates for over 85% of the agreed CIF volumes, ensuring stability and efficiency in logistics.

Metro Mining continues to build on its strong position as an independent bauxite producer, with its operations based on the Weipa bauxite plateau, near the coast on the Skardon River in Far North Queensland.

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