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Metro Mining Completed Stage 2 DFS

Metal News - Published on Fri, 18 Oct 2019

Image Source: proactiveinvestors.com.au
Metro Mining Limited has completed the Definitive Feasibility Study for the Stage 2 expansion of its Bauxite Hills Mine in in Far North Queensland. Metro Managing Director and Chief Executive Officer Simon Finnis said that "The completion of the feasibility study and selection of the preferred design for the FT is a key step to allow execution of the expansion at Bauxite Hills by 2021. It builds on the outstanding production performance and operating experience gained since the mine commenced production in April 2018. We have some further work to do on the final design, and we need to finalise the funding package, and then we will present to the board for their approval.
It is pleasing to see the DFS completed and we thank shareholders for their patience: The DFS clearly shows that the expansion confirms Bauxite Hills as one of the lowest cost and largest independent producers of bauxite in the market."

The key outcomes are as follows:

1. Confirmation of the significant economic benefits of expanding to an annualised rate of 6.0 Million Wet Metric Tonnes;

2. Reserves of 109.5Mt* at Bauxite Hills and a mine life to 2037;

3. Production target of 4M WMT in 2020, followed by 6M WMTpa thereafter;

4. Significant reduction in unit operating costs by the use of a Floating Terminal that can load larger, ungeared Ocean-Going Vessels (OGVs), including Cape Size vessels;

5. Capital Costs of A$51.4 Million (including 10% contingency);

6. The FT comprises approximately 85% of the total expansion capital;

7. Expansion of the accommodation camp, port area modifications and fleet additions (including mobillisation) makes up the remainder of the capital spend;

8. Life of Mine unit operating costs are forecast to reduce by approximately 18% delivered to China when operating at the 6M WMTpa rate, which will increase operating margins. This will position Bauxite Hills in the lowest quartile of the global cash cost curve for bauxite producers, and;

Source :

Posted By : Rabi Wangkhem on Fri, 18 Oct 2019
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