Proactiveinvestors Australia Metro Mining Ltd https://www.proactiveinvestors.com.au Proactiveinvestors Australia Metro Mining Ltd RSS feed en Sun, 21 Jul 2019 00:13:16 +1000 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com (Proactiveinvestors) action@proactiveinvestors.com (Proactiveinvestors) <![CDATA[News - Metro Mining upgrades Bauxite Hills reserve after first year mining ]]> https://www.proactiveinvestors.com.au/companies/news/224026/metro-mining-upgrades-bauxite-hills-reserve-after-first-year-mining-224026.html Metro Mining Ltd (ASX:MMI) has revealed an updated reserve and resource for its Bauxite Hills mine in Far North Queensland following the first year of mining.

Notably, the company has achieved an 18.8% increase in reserves from 92.2 million tonnes to 109.5 million tonnes.

Metro managing director and chief executive officer Simon Finnis said: “We are pleased to report the increase in Reserve, effectively extending the mine life of Bauxite Hills, and the greater level of confidence in the total Resource.

“There has been strong reconciliation from the results of mining to date and the Resource and Reserve model. The results of this update demonstrate our increased confidence in the project.”

READ: Metro Mining continues to ramp-up production and shipping from Bauxite Hills Mine

The total reserve estimate for Bauxite Hills is now 109.5 million tonnes (wet) and takes into account depletion to March 2019 and additional conversion of resources.

The overall increase in reserves (taking into account depletion by mining) is 17.3 million tonnes or 18.8% from that published in March 2017.

Importantly, this has the potential to extend mine life by about three years to 2037, at the expanded run rate of 6 million tonnes per annum.

READ: Metro Mining new offtake deal takes sales of 2019 bauxite production to 90%

The total measured resource is now 78.1 million tonnes (dry), representing a 42.8% increase of the measured category from that published in March 2017, reflecting greater levels of confidence in the resource.

There has also been a slight improvement in alumina and silica grades.

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Wed, 17 Jul 2019 14:11:00 +1000 https://www.proactiveinvestors.com.au/companies/news/224026/metro-mining-upgrades-bauxite-hills-reserve-after-first-year-mining-224026.html
<![CDATA[News - Metro Mining continues to ramp-up production and shipping from Bauxite Hills Mine ]]> https://www.proactiveinvestors.com.au/companies/news/223320/metro-mining-continues-to-ramp-up-production-and-shipping-from-bauxite-hills-mine-223320.html Metro Mining Ltd (ASX:MMI) has achieved a steady ramp-up in bauxite production and shipping from its Bauxite Hills Mine in Far North Queensland during the June quarter.

The company has now reached the budgeted operating rates and is achieving consistent results on a daily basis.

Metro had encountered some unexpected adverse swell conditions starting late May. These conditions gradually improved and returned to expected conditions around June 10, 2019.

From this point onwards, daily shiploading rates have averaged over 15,000 wet metric tonnes (WMT) per day, including a daily record of 20,835 WMT.

The company is confident of maintaining these levels throughout the year and remains on track to meet its production and shipping guidance of 3.3-3.5M WMT.

Metro managing director and chief executive officer Simon Finnis said: “While it was a challenging start to the quarter, I am extremely proud of how the site team and our contract partners responded to resolving issues as they arose.

“All aspects of the operation have finished the quarter performing strongly, and we have laid the groundwork to meet our current production guidance.”

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Thu, 04 Jul 2019 14:21:00 +1000 https://www.proactiveinvestors.com.au/companies/news/223320/metro-mining-continues-to-ramp-up-production-and-shipping-from-bauxite-hills-mine-223320.html
<![CDATA[News - Metro Mining new offtake deal takes sales of 2019 bauxite production to 90% ]]> https://www.proactiveinvestors.com.au/companies/news/223089/metro-mining-new-offtake-deal-takes-sales-of-2019-bauxite-production-to-90-223089.html Metro Mining Ltd (ASX:MMI)'s new binding contract with a major state-owned Chinese aluminum group takes sales of planned bauxite production for 2019 to around 90%.

This contract is for 420,000 wet metric tonnes (wmt) to be delivered in the second half of 2019 from Metro's planned 2019 Bauxite Hills project production of 3.3 to 3.5 million wmt.

The group owns alumina refineries in the Chinese provinces of Shanxi, Shandong, Guangxi and Guizhou with the contract based on market pricing with typical bonus and penalty clauses associated with agreed product specifications.

Under the contract, the bauxite will be delivered to the Shanxi province refinery which is operating below capacity due to reduced bauxite availability.

READ: Metro Mining commissions additional infrastructure to expand Bauxite Hills production

Metro’s managing director Simon Finnis said: “We are delighted to have finalised a new offtake agreement with a major state-owned Chinese aluminum group whom, we believe, has the capacity to be another long-term offtake partner.

“We have now successfully sold about 90% of Metro’s planned 2019 production.

“This agreement highlights the particular interest being seen from refineries located in the inland provinces where supply of domestic bauxite has been hindered by recent mine closures and environmental audits.”

READ: Metro Mining confirms it is getting the job done at today’s AGM

The Shanxi refinery is planning to modify its refining conditions to match the processing requirements of the material from Metro’s Bauxite Hills mine.

Given the scale of the group’s alumina/aluminium operations throughout China, Metro is looking forward to working with this state-owned Group in coming years and building upon this initial contract.

Metro has re-started operations at the Bauxite Hills mine in Far North Queensland for the 2019 operating year and has completed activities relating to the expansion of production.

The installation of duplicate screening infrastructure at the port was on time and integration of new 7,000-tonne barges and triple set trailers has resulted in a demonstratable increase in production levels.

At the company's annual general meeting in May the transition from developer to operator was highlighted along with the expansion plans.

Bauxite production for the 2018 year went as planned, laying a proof-of-operational-concept given production guidance was met even with external challenges such as weather.

READ: Metro Mining unaffected by China refinery audits, working towards 75% more production in 2019

Metro Mining chairman Stephen Everett said at the AGM: “We shipped over 2 million tonnes of bauxite in 2018 and we have announced upgraded production guidance to 3.5 million tonnes for this year.

“I think it is fair to say Metro is on its way.”

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Mon, 01 Jul 2019 12:16:00 +1000 https://www.proactiveinvestors.com.au/companies/news/223089/metro-mining-new-offtake-deal-takes-sales-of-2019-bauxite-production-to-90-223089.html
<![CDATA[News - Metro Mining commissions additional infrastructure to expand Bauxite Hills production ]]> https://www.proactiveinvestors.com.au/companies/news/221829/metro-mining-commissions-additional-infrastructure-to-expand-bauxite-hills-production-221829.html Metro Mining Ltd (ASX:MMI) has recommenced operations at the Bauxite Hills Mine for the 2019 operating year and has completed its activities relating to the expansion of production.

The installation of duplicate screening infrastructure at the port was on time and the integration of new 7,000-tonne barges and triple-set trailers has resulted in a demonstrable increase in production levels.

Mining activities

Daily mining rates were initially hindered by the wet conditions and delays to the delivery of the new triple trailers.

Focus on mining from the BH1 deposit located 25 kilometres from the port also caused limitations to haulage operations.

However, with the commissioning of the new triple-trailer sets mining rates have increased significantly and have been consistently between 12,000 and 14,000 tonnes per day.

Further increases are anticipated as the June mining plan dictates that bauxite will also be mined from the BH6 deposit, located only 6 kilometres from the port.

Transhipment and shiploading activities

Transhipment and shiploading activities commenced on April 13. Bauxite Hills has a nominal 8/9-month operating season and to achieve guidance an average ship-loading rate of 13,500 tonnes per day is required.

This rate was being achieved in mid to late-May following commissioning of the new 7,000-tonne barges, and increased ore availability from increased mining and haulage rates.

However, towards the end of May, unexpected large and sustained swell conditions caused by an unusual south-easterly wind pattern resulted in disruption to ship loading.

Such long and sustained swell events are unusual during Metro’s operating season and has reduced daily loading rates during the affected period.

READ: Metro Mining new director shows faith in company with initial on-market purchase

It should be noted that mining and haulage has been unaffected resulting in stockpiles in excess of 100,000 tonnes of bauxite either loaded onto barges or located at the port facility.

Given the transhipping rates being achieved in late May Metro anticipates that some (but not all) of the June quarter production shortfall can be recovered during the remainder of the 2019 operating season.

The expectation is that the previous June quarter production guidance will likely be missed by about 220,000-240,000 tonnes.

Therefore, Metro’s 2019 production guidance has been updated to 3.3 – 3.5 million tonnes which incorporates an allowance during the year for adverse swell conditions.

The company’s expectation is that swell conditions will revert back to what was experienced during 2018.

READ: Metro Mining managing director wins Asia Pacific Mining Executive of the Year award

Metro managing director and chief executive officer Simon Finnis said: “Whilst these weather events are frustrating, I am really pleased to see how the operations are now performing following commissioning of all elements of the expansion and upgrade program.

“We remain committed to achieving our updated 2019 production guidance”.

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Tue, 11 Jun 2019 11:25:00 +1000 https://www.proactiveinvestors.com.au/companies/news/221829/metro-mining-commissions-additional-infrastructure-to-expand-bauxite-hills-production-221829.html
<![CDATA[News - Metro Mining new director shows faith in company with initial on-market purchase ]]> https://www.proactiveinvestors.com.au/companies/news/221521/metro-mining-new-director-shows-faith-in-company-with-initial-on-market-purchase-221521.html Metro Mining Ltd's (ASX:MMI) new non-executive director Fiona Murdoch has demonstrated faith in the company's bauxite strategy with her initial on-market purchase of shares.

Murdoch, who was appointed to the board in March, purchased 150,000 ordinary shares on June 5 for total value of $20,050, share marking her first purchase in the company.

READ: Metro Mining appoints MBA and honours degree graduate Fiona Murdoch to board of directors

The company's shares last traded at 13 cents.

Murdoch has more than 28 years of experience in the resources and infrastructure sectors in Australia and internationally.

With an honours degree in law, her mining sector experience includes senior operational roles with AMCI investments, MIM Holdings and Xstrata Queensland.

READ: Metro Mining confirms it is getting the job done at today’s AGM

Last month the company’s chairman Stephen Everett and managing director and CEO Simon Finnis addressed shareholders on its successful transition from developer to operator.

It noted bauxite production in 2018 went as planned, laying a proof-of-operational concept given production guidance was met even with external challenges such as weather.

READ: Metro Mining unaffected by China refinery audits, working towards 75% more production in 2019

Addressing the AGM, Everett said: “I think it is fair to say Metro is on its way.

“We shipped over 2 million tonnes of bauxite in 2018 and we have announced upgrade production guidance to 3.5 million tonnes for this year.”

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Wed, 05 Jun 2019 15:46:00 +1000 https://www.proactiveinvestors.com.au/companies/news/221521/metro-mining-new-director-shows-faith-in-company-with-initial-on-market-purchase-221521.html
<![CDATA[News - Metro Mining confirms it is getting the job done at today’s AGM ]]> https://www.proactiveinvestors.com.au/companies/news/220818/metro-mining-confirms-it-is-getting-the-job-done-at-todays-agm-220818.html Metro Mining Ltd (ASX:MMI) chairman Stephen Everett and managing director and CEO Simon Finnis addressed shareholders today at its annual general meeting (AGM) in Brisbane.

The company took time to reflect on its successful transition from developer to operator, completed on time and within budget.

It also noted that bauxite production in 2018 went as planned laying a proof-of-operational-concept given production guidance was met even with external challenges such as weather.

READ: Metro Mining loading first 2019 shipments after resuming operations at Bauxite Hills

Addressing the AGM, Stephen Everett said: “I think it is fair to say Metro is on its way!

“We shipped over 2 million tonnes of bauxite in 2018 and we have announced upgraded production guidance to 3.5 million tonnes for this year.

“Since the beginning of this year we have:

▪ Finalised works to upgrade the mine site and transhipping facilities and mobilised necessary equipment & personnel to enable us to meet the 3.5 million tonne production target;
▪ Progressed the review of the DFS for the expansion to 6Mtpa. I expect the DFS will be released in the June quarter; and
▪ Shipped (under often difficult weather conditions) over 350,000 wmt of ore."

2019 production guidance confirmed

Earlier this year, Metro increased 2019 production guidance by 17% from 3.0 million wet metric tonnes (wmt) to 3.5 million wmt.

The 2019 production expansion brings forward improvements and upgrades included in Stage 2 Expansion, which aims to deliver 6.0 million wmt per annum steady-state by 2021.

The DFS for this expansion is expected to be released during this June quarter and epectations are for Stage 2 capex to be funded from internal cash flow and/or debt.

The company has also pleasingly already sold 75% of 2019 production.

Chinese bauxite imports at record level

China bauxite imports continue to increase with total 2018 imports exceeding 82 million wmt and 2019 is on track for  over 90 million wmt.

This is being driven by strong demand from inland Chinese refineries coupled with domestic bauxite supply being impacted by resource depletion, recent mine closures and environmental audits.

READ: Metro Mining unaffected by China refinery audits, working towards 75% more production in 2019

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Thu, 23 May 2019 12:40:00 +1000 https://www.proactiveinvestors.com.au/companies/news/220818/metro-mining-confirms-it-is-getting-the-job-done-at-todays-agm-220818.html
<![CDATA[News - Metro Mining unaffected by China refinery audits, working towards 75% more production in 2019 ]]> https://www.proactiveinvestors.com.au/companies/news/220461/metro-mining-unaffected-by-china-refinery-audits-working-towards-75-more-production-in-2019-220461.html Metro Mining Ltd (ASX:MMI) has addressed Chinese media reports related to environmental audits of off-take partner's aluminium refineries.

Bauxite is shipped from Metro's operating Bauxite Hills Mine in North Queensland to a refinery located in the coastal province of Shandong in China.

Metro notes that the refinery that has been impacted by the audit is in the Shanxi inland province of China, which is fed by bauxite 100% sourced from China.

As such, Metro is continuing to supply bauxite to its off-take partner Xinfa as planned under their long-term agreement.

READ: Metro Mining loading first 2019 shipments after resuming operations at Bauxite Hills

Metro's CEO and managing director Simon Finnis said: "Metro and Xinfa have formed a strong and mutually beneficial relationship over a number of years. We meet regularly to discuss ways to build on this sound footing, and we look forward to this partnership continuing to flourish as Bauxite Hills continues to deliver on its commitment to Xinfa.”

Metro has guided to 2019 calendar year bauxite production of 3.5 million wet metric tonnes (wmt), a 75% increase on 2018 production of 2.0 million wmt.

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Fri, 17 May 2019 08:59:00 +1000 https://www.proactiveinvestors.com.au/companies/news/220461/metro-mining-unaffected-by-china-refinery-audits-working-towards-75-more-production-in-2019-220461.html
<![CDATA[News - Metro Mining loading first 2019 shipments after resuming operations at Bauxite Hills ]]> https://www.proactiveinvestors.com.au/companies/news/218533/metro-mining-loading-first-2019-shipments-after-resuming-operations-at-bauxite-hills-218533.html Metro Mining Ltd (ASX:MMI) has resumed operations at its Bauxite Hills project in Far North Queensland with the year's first shipment to China being loaded.

Successful 2018 activities ceased in December for the wet season with 2.04 million wet metric tonnes (wmt) of bauxite having been loaded onto 33 vessels and sold to five separate customers in China during the year.

The focus during the downtime was on expanding production to 3.5 million tonnes this year with new personnel recruited for the transition to owner/operator mining and for the expanded operations.

READ: Metro Mining resumes bauxite mining with strong 2019 expected

Metro Mining director and chief executive officer Simon Finnis said: “We are very pleased with what has been achieved on site and welcome our new and returning personnel to Bauxite Hills.

“Now we have laid the groundwork I am very confident the team will meet this calendar year’s revised production target of 3.5 million wmt and build on last year’s successes.

“After the break for the wet season, we are very much looking forward to getting back into operation.”

To prepare for increased production the port area was increased in size and the layout changed to improve traffic flow with stockpile management systems modified to improve quality control systems.

The civils for the new screening systems quickly followed and the two screens are now fully installed and operational.

READ: Metro Mining managing director wins Asia Pacific Mining Executive of the year award

Mining and haulage operations also began in late March/early April, focusing on building stocks in preparation for the first ship, which arrived late last week.

Screening, stockpiling and barge loading at the port is underway.

A second ship has been booked to arrive later this week with both shipments to be delivered to Metro foundation customer Xinfa.

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Mon, 15 Apr 2019 12:00:00 +1000 https://www.proactiveinvestors.com.au/companies/news/218533/metro-mining-loading-first-2019-shipments-after-resuming-operations-at-bauxite-hills-218533.html
<![CDATA[News - Metro Mining resumes bauxite mining with strong 2019 expected ]]> https://www.proactiveinvestors.com.au/companies/news/218386/metro-mining-resumes-bauxite-mining-with-strong-2019-expected-218386.html Metro Mining Limited (ASX:MMI) has recommenced mining at the Bauxite Hills project in Far North Queensland following the wet season and is expected to build on the success of its first operational year in 2018.

The company is helping meet increased demand from China for bauxite with imports tipped to increase to around 90 million tonnes this year, up from 82 million tonnes last year.

A ship was due at the dock today for the company’s first 2019 shipment to China.

READ: Metro Mining managing director wins Asia Pacific Mining Executive of the Year award

Managing director Simon Finnis told investors at this week’s Proactive CEO Sessions in Sydney and Melbourne that the company was increasing annual output to 3.5 million wet metric tonnes (wmt) this year.

This process would be facilitated by the company reverting to in-house mining along with a series of low-cost operational improvements and upgrading initiatives.

A jaw crusher was installed and commissioned in late 2018 as part of this initiative.

This provides considerable benefit as oversized material can be processed after screening, thus reducing stockpiling requirements at the port and improving quality management systems.

READ: Metro Mining plans to lift production by 17% at Bauxite Hills project

Much of the existing plant and infrastructure at Bauxite Hills has been designed to accommodate higher production levels so the initiatives to incrementally increase production are easy to implement and low-cost.

Finnis said the company was also working on a DFS for the potential stage II expansion of annual production to 6 million tonnes by 2021 with completion expected in mid-2019.

He told investors that production upgrades were being driven by demand for its product while prices also appeared to be on an upward trend.

Metro is seeing particularly strong demand from refineries in inland Chinese provinces where supply has been hindered by recent mine closures and environmental audits.

Additional news flow will come around the end of this month with new resource and reserve statements.

Read the presentation made by Simon Finnis here.

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Thu, 11 Apr 2019 16:36:00 +1000 https://www.proactiveinvestors.com.au/companies/news/218386/metro-mining-resumes-bauxite-mining-with-strong-2019-expected-218386.html
<![CDATA[News - Metro Mining managing director wins Asia Pacific Mining Executive of the Year award ]]> https://www.proactiveinvestors.com.au/companies/news/217925/metro-mining-managing-director-wins-asia-pacific-mining-executive-of-the-year-award-217925.html Metro Mining Ltd’s (ASX:MMI) managing director Simon Finnis has been awarded Asia Pacific Mining Executive of the Year at the internationally recognised Mines and Money Forum in Hong Kong.

Over 1000 global decision makers, mining executives, investors, commodity buyers and policy makers from 40 countries attended the forum (2-4 April 2019) where 80 miners showcased their projects.

The Industry leaders also discussed political and macroeconomic impacts on the price of commodities, supply and demand dynamics and China’s role as a key consumer.

In August last year Metro Mining received the Emerging Miner Award at Diggers and Dealers, Australia's largest mining forum, held in Kalgoorlie, Western Australia.

Production guidance raised

Finnis said while he was personally honoured to receive the award it was recognition for the efforts of the entire Metro Mining team.

He added "We worked under some difficult conditions, including enduring the effects of two tropical cyclones at the start and end of our annual mining program last year, to meet our 2 million tonne production guidance.

“This year we have increased our guidance to 3.5 million tonnes. The team is focused and eager to get on with the job and I thank them for their ongoing efforts.”

READ: Metro Mining to outline bauxite expansion plans during Proactive CEO Sessions

Finnis will outline Metro Mining’s bauxite production expansion plans to investors during next week’s Proactive CEO Sessions.

He will address the CEO Session in Sydney on Monday, April 8 and in Melbourne the following day, April 9.

Register for the CEO Sessions today

Sydney details, Tuesday, April 9, 2019

Melbourne details, Wednesday, April 10, 2019

Also featuring at both sessions will be ioneer Ltd (ASX:INR), Yandal Resources Ltd (ASX:YRL), Kangaroo Island Plantation Timbers Ltd (ASX:KPT) and Elementos Limited (ASX:ELT).

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Thu, 04 Apr 2019 15:14:00 +1100 https://www.proactiveinvestors.com.au/companies/news/217925/metro-mining-managing-director-wins-asia-pacific-mining-executive-of-the-year-award-217925.html
<![CDATA[News - Metro Mining to outline bauxite expansion plans during Proactive CEO Sessions ]]> https://www.proactiveinvestors.com.au/companies/news/217289/metro-mining-to-outline-bauxite-expansion-plans-during-proactive-ceo-sessions-217289.html Metro Mining Ltd (ASX:MMI) will outline its bauxite production expansion plans to investors during next month’s Proactive CEO Sessions.

Managing director Simon Finnis will explain how the company is transitioning to owner-operator status at the Bauxite Hills project in Far North Queensland.

Simon Finnis.

READ: Metro Mining plans to lift production by 17% at Bauxite Hills project

This comes as the company aims to expand bauxite production by 17% this year to an annual rate of 3.5 million wet metric tonnes (wmt).

Finnis will address the CEO Session in Sydney on Monday, April 8 and in Melbourne the following day, April 9.

Production is due to recommence at the project as soon as the wet season ends.

During the break, the company has focused on planned maintenance as well as completing preparatory work for the expansion and upgrading program.

READ: Metro Mining due to recommence bauxite mining in mid to late March

Upon resumption of mining, Metro intends is to build significant stockpiles of screened and unscreened material before transhipping operations resume.

Loading of the first ocean-going vessel in 2019 is planned for mid-April.

While delivering its near-term expansion, the company is also progressing well with refreshing the definitive feasibility study (DFS) for the stage II expansion at Bauxite Hills to 6 million tonnes per annum.

This updated DFS is expected to be delivered in the June quarter.

The company is also expecting assay results for the exploration program completed in the second half of 2018 around the project area. There were 221 holes completed for 893 metres.

Register for the CEO Sessions today

Sydney details, Tuesday, April 9, 2019

Melbourne details, Wednesday, April 10, 2019

Also featuring at both sessions will be Elementos Limited (ASX:ELT) and ioneer Ltd (ASX:INR).

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Thu, 28 Mar 2019 08:00:00 +1100 https://www.proactiveinvestors.com.au/companies/news/217289/metro-mining-to-outline-bauxite-expansion-plans-during-proactive-ceo-sessions-217289.html
<![CDATA[News - Metro Mining appoints MBA and honours degree graduate Fiona Murdoch to board of directors ]]> https://www.proactiveinvestors.com.au/companies/news/216140/metro-mining-appoints-mba-and-honours-degree-graduate-fiona-murdoch-to-board-of-directors-216140.html Metro Mining Ltd (ASX:MMI) has appointed MBA and Australian Institute of Company Directors graduate Fiona Murdoch to its board.

Murdoch has more than 28 years of experience in the resources and infrastructure sectors in Australia and internationally and is a non-executive director for KGL Resources Ltd (ASX:KGL).

With an honours degree in law, Murdoch’s mining sector experience includes senior operational roles with AMCI investments, MIM Holdings and Xstrata Queensland.

READ: Metro Mining due to recommence bauxite mining in mid to late March

Metro chairman Stephen Everett said Fiona’s appointment followed an extensive national search conducted by an independent executive search organisation.

“Fiona certainly set a high benchmark during the appointment process, her board and executive experience bring considerable expertise to our company as we continue to focus on the Bauxite Hills Mine and all that is required to facilitate its expansion.

“The directors look forward to working with Fiona whose skills will be of considerable benefit as we continue to work to maximise company and shareholders value.”

READ: Metro Mining plans to life production by 17% at Bauxite Hills project

Ms Murdoch sad Metro Mining was widely recognised as a company that delivered on its undertakings.

“Metro’s journey has not been without its challenges and it is a credit to the board, senior management and the entire team that the company has progressed from explorer to miner.

“Construction of the Bauxite Hills Mine was conducted in just five months and production guidance was reached in the first year of mining operations.

“The challenge now is to build upon that, reduce costs and increase value for all shareholders.

“I am delighted to be joining the board and I am looking forward to contributing my skills to ensure that Metro maximises all available opportunities.”

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Mon, 11 Mar 2019 13:02:00 +1100 https://www.proactiveinvestors.com.au/companies/news/216140/metro-mining-appoints-mba-and-honours-degree-graduate-fiona-murdoch-to-board-of-directors-216140.html
<![CDATA[News - Metro Mining due to recommence bauxite mining in mid to late March ]]> https://www.proactiveinvestors.com.au/companies/news/215475/metro-mining-due-to-recommence-bauxite-mining-in-mid-to-late-march-215475.html Metro Mining Ltd (ASX:MMI) is due to resume mining bauxite within a month at its Bauxite Hills operation in Far North Queensland subject to the end of the wet season.

With the start of the wet season in late December, mining operations stopped with the company focused on planned maintenance on-site infrastructure during the downtime.

Metro has also used the break to complete preparatory work for installation of the capital items associated with the expansion and upgrade program to a 3.5 million tonnes per annum production rate.

READ: Metro Mining plans to lift production by 17% at Bauxite Hills project

The intention of the company upon resumption of mining is to build significant stockpiles of screened and unscreened material before transhipping operations resume.

Loading of the first ocean-going vessel in 2019 is planned for mid-April.

“Everything is on track”

Metro’s managing director and CEO Simon Finnis said: “The inclement weather hasn’t dampened the performance of our site maintenance and operations team, and I congratulate them and the support teams working in Cairns and Brisbane for their efforts.

“Everything is on track to achieve our 2019 production guidance of 3.5 million tonnes of bauxite.”

As part of the expansion, a duplicate screen and grizzly will be commissioned in late March.

Triple trailer sets will be delivered to the Port of Darwin for barging to Skardon River in time to coincide with the ramp-up in mining and a larger tug and barges will be introduced to the marine fleet in April.

READ: Metro Mining shares rise on bauxite quarterly result

Metro is also progressing as planned with its transition to owner-operator at the Bauxite Hills project.

All senior management positions have been filled and recruitment of operators is well advanced.

Stage II expansion DFS progresses

While delivering its near-term expansion, the company is also progressing well with refreshing the definitive feasibility study (DFS) for the stage II expansion to 6 million tonnes per annum.

The updated DFS is expected to be delivered in the June quarter and, if approved by the board, may provide the opportunity to lower unit costs and significantly enhance operational efficiencies.

Finnis said: "We are looking forward to seeing the results of the updated DFS for the 6 million tonne expansion which, if approved, would represent a major step change in our Bauxite Hills operation.”

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Thu, 28 Feb 2019 15:56:00 +1100 https://www.proactiveinvestors.com.au/companies/news/215475/metro-mining-due-to-recommence-bauxite-mining-in-mid-to-late-march-215475.html
<![CDATA[News - Metro Mining plans to lift production by 17% at Bauxite Hills project ]]> https://www.proactiveinvestors.com.au/companies/news/215373/metro-mining-plans-to-lift-production-by-17-at-bauxite-hills-project-215373.html Metro Mining Limited (ASX:MMI) intends to expand bauxite production by 17% at its Bauxite Hills project in Far North Queensland to 3.5 million wet metric tonnes (wmt) during 2019.

In its half-year report for the period ending December 31, 2018, the company said it had decided to implement a series of low-cost operational improvements and upgrade initiatives to carry out the expansion.

Long lead-time items have been ordered and works have begun to implement the changes required to meet the expanded production forecast.

READ: Metro Mining to bring Bauxite Hills mining in house, restart operation in June quarter

Most on-site work is taking place during the wet season shutdown and will not impact the planned re-commencement of operations in April 2019 at the start of the dry season.

Much of the existing plant and infrastructure at Bauxite Hills has been designed to accommodate higher production levels so the initiatives to incrementally increase production are easy to implement and low-cost.

Many of these initiatives were part of the long-term stage II expansion to 6 million wmt.

Jaw crusher commissioned

A jaw crusher was installed and commissioned in late 2018 as part of the improvement and expansion initiative.

This provides considerable benefit as oversized material can be processed after screening, thus reducing stockpiling requirements at the port and improving quality management systems.

27 vessels loaded in six months

During the six months to December 31, 27 vessels were loaded containing 1.646 million wmt of bauxite, with the final 2018 vessel shipped to customers on December 28.

The company’s 2018 marketing program was successful with all production sold into the Chinese market and around 75% of 2019 production committed to customers.

The product was well accepted in China with sales being made to five separate customers and with growing demand for the group’s bauxite from existing and potential new customers.

Metro is seeing particularly strong demand from refineries in inland Chinese provinces where supply has been hindered by recent mine closures and environmental audits.

Exploration

A drilling program around the bauxite hills mine area was completed during the six months on a 160-metre by 160-metre grid, comprising 221 holes for a total of 893 metres.

Assays are expected during the March quarter of 2019 and will form the basis of an updated resource and reserve statement. 

- Jessica Cummins

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Tue, 26 Feb 2019 23:42:00 +1100 https://www.proactiveinvestors.com.au/companies/news/215373/metro-mining-plans-to-lift-production-by-17-at-bauxite-hills-project-215373.html
<![CDATA[News - Metro Mining to make new board appointment in March ]]> https://www.proactiveinvestors.com.au/companies/news/214303/metro-mining-to-make-new-board-appointment-in-march-214303.html Metro Mining Ltd (ASX:MMI) has commenced a search to replace outgoing non-executive director Lindsay Ward.

Ward has been on the board since 2011 and has seen the company transition from coal explorer to bauxite miner; who in its first year of operation exported 2.0 million tonnes of bauxite product as planned.

His resignation is due to his recent appointment to the board of another listed public company.

READ: Metro Mining shares rise on bauxite quarterly result

Metro’s chairman Stephen Everett said: “Metro’s board, management and I personally wish to thank Lindsay for his support, hard work and tireless efforts during our journey to becoming a bauxite mining company.

“Transitioning from explorer to developer to producer is never easy however having strong leadership at Board level significantly assists with that effort.

“We will miss Lindsay and his contribution to the board and the committees on which he has served.”

Ward also said: “It has been a great privilege to be part of the Metro team which, over the past 7 years, has led Metro’s journey from coal explorer to successful bauxite producer.

“Due to other board commitments I have decided to leave the Metro board however I have every confidence that Metro will continue to deliver on its commitments to shareholders, stakeholders and customers in 2019 and beyond.”

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Mon, 11 Feb 2019 08:31:00 +1100 https://www.proactiveinvestors.com.au/companies/news/214303/metro-mining-to-make-new-board-appointment-in-march-214303.html
<![CDATA[Media files - Metro Mining lifts production guidance for 2019 by 17%, Stage 2 DFS update underway ]]> https://www.proactiveinvestors.com.au/companies/stocktube/12145/metro-mining-lifts-production-guidance-for-2019-by-17-stage-2-dfs-update-underway-12145.html Fri, 08 Feb 2019 12:14:00 +1100 https://www.proactiveinvestors.com.au/companies/stocktube/12145/metro-mining-lifts-production-guidance-for-2019-by-17-stage-2-dfs-update-underway-12145.html <![CDATA[News - Metro Mining shares rise on bauxite quarterly result ]]> https://www.proactiveinvestors.com.au/companies/news/213453/metro-mining-shares-rise-on-bauxite-quarterly-result-213453.html Metro Mining Ltd (ASX:MMI) produced 743,000 wet metric tonnes (wmt) of bauxite in the December quarter from its Bauxite Hills Mine in north Queensland.

This confirms earlier indications that 2018 production guidance of over 2.0 million wmt has been achieved.

Furthermore, using data from both the September and December quarters, the mining operation is producing at an annualised run-rate of 2.5 million wmt per annum.

Notably, Metro has boosted 2019 bauxite production guidance by 17% to 3.5 million wmt from 3.0 million wmt,

READ: Metro Mining to bring Bauxite Hills mining in house, restart operation in June quarter

Importantly, bauxite was being mined for $49.68 per wmt including freight and royalties while the average sale price was $60.7 per wmt for the December quarter.

Mine EBITDA for the quarter was a solid A$8.6 million and is expected to significantly increase as production volumes expand and as operational improvements and upgrade initiatives are implemented.

This flowed through to positive cash flow and cash and receivables increasing to $40.15 million at the end of the December quarter.

Stage II DFS underway

An updated definitive feasibility study (DFS) for potential stage II expansion of annual production to 6.0 million wmt per annum by 2021 was also commenced during the quarter.

The DFS will be updated to incorporate operating experience to date, operational improvements and upgrades being implemented and strengthening bauxite market conditions in China.

The study is on track to be completed in the June quarter of 2019.

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Tue, 29 Jan 2019 10:53:00 +1100 https://www.proactiveinvestors.com.au/companies/news/213453/metro-mining-shares-rise-on-bauxite-quarterly-result-213453.html
<![CDATA[News - Metro Mining to bring Bauxite Hills mining in house, restart operation in June quarter ]]> https://www.proactiveinvestors.com.au/companies/news/212863/metro-mining-to-bring-bauxite-hills-mining-in-house-restart-operation-in-june-quarter-212863.html Metro Mining Ltd (ASX:MMI) (FRA:6ME) plans to bring mining back in-house this year as it tips a 75% increase to tonnes mined annually at it Bauxite Hills mine in far north Queensland to 3.5 million wet metric tonnes (wmt).

Representatives for the award-winning mine waved off 33 vessels last year, with the final ship departing for China in December 2018.

READ: Metro Mining achieves guidance, ships over 2 million tonnes bauxite in 2018

Despite Cyclone Owen’s effect on the Brisbane-based company, its crew still managed to load 220,000 tonnes of bauxite last month.

2018 was the company’s first year of operations at the Bauxite Hills mine and it met its guidance target of 2 million wmt of shipped production.

At the dawn of the new year, Metro Mining’s total shipped production figure for 2018 was 2.037 million wmt from Bauxite Hills.

The mine began production in April 2018 and has an estimated reserve of 92.2 million tonnes and total resources of 144.8 million tonnes.

It is tipped to deliver bauxite into China over a 17-year mine life.

Metro managing director & CEO Simon Finnis acknowledged the production milestone on December 31, 2019, saying: “This is a great result for Metro.

“Not only have we achieved guidance for 2018 in our first operational year, but we’ve done so after our operations have twice been interrupted by cyclones, at either end of the operating year.”

 

Metro will up production levels this year, announcing in November 2018 it would set guidance at 3.5 million wmt to meet strong customer demand.

In late November the company had contracts for 69% of the expanded 2019 production forecast.

Finniss said at the time: “This year your company has transitioned smoothly from a developer to a producer with a significant growth outlook and continues to look for ways to improve and take advantage of market forces.”

One of the ways the company plans to improve is to bring production in-house.

The company plans to restart its operations in April 2019, after the wet season, and have its team mine the resources.

READ: Metro Mining will lift bauxite production to meet strong demand from customers

As a result, Metro has terminated its contract mining agreement with SAB Mining.

Finnis explained: “Now that we’ve commissioned and ramped up the project during 2018, it is a natural transition to own and operate our mining equipment.

“We have an excellent management team in place at the mine that is eminently capable of managing the mining function, so we see this as a logical step to increase efficiencies and reduce operating costs as we increase production to 3.5 million tonnes in 2019.”

READ: Metro Mining Ltd re-elects Stephen Everett, Mark Sawyer, affirms ambitions

To prepare for mining in the June 2019 financial quarter, Metro will undertake a number of activities in the March 2019 quarter, including:

Supplementing Bauxite Hills’ truck and haulage fleet configuration; Duplicating screening capacity at its Barge Loading Facility; Accelerating installation of a jaw crusher to enable shipment of any oversized material; and Supplementing the marine fleet and on-water infrastructure to maximise tug and barge movement efficiency.

Much of the Bauxite Hills existing plant and infrastructure has been designed to accommodate higher operating levels, so the initiatives may prove low-cost and easy to implement.

The company is also planning to update a stage II scenario from its definitive feasibility study (DFS) in the second half of 2019 to incorporate a production expansion to 6 million tonnes and then present an investment option to Metro’s board.

Coal assets review

Metro is undertaking a review of opportunities for its coal assets which are housed in a subsidiary.

Major shareholder DADI Engineering Development Group’s former representative on the Metro board Xiaoming (Aaron) Yuan joined the subsidiary’s board in November 2018 on his retirement from Metro’s board.

Yuan spent eight years on Metro’s board.

Two options for the coal assets are divesting them or forming a joint venture.

Quarterly cash report

Metro had $22.9 million cash at the end of the September 2018 quarter, with cash and trade receivables sitting at $38.2 million.

The company used $3.2 million on operating activities during the quarter, spending $558,000 on investing activities and directing $3.4 million net cash towards financing activities.

Sales revenue for the period was $43.8 million after 822,000 wmt was shipped to five Chinese customers, including foundation customer Xinfa Group Corporation Limited.

Unit costs were about $46 a wmt.

The company had $14.77 million in loan facilities on September 30, 2019, with the full amount drawn down.

Metro’s estimated cash outflows for the December 2019 quarter were $44.3 million.

Tight capital structure

On August 28, 2018, Metro’s top 20 shareholders held 76.52% of the company.

There were 1,059,106,012 ordinary shares on issue.

The company’s substantial holders consisted of number-one shareholder Greenstone Management (Delaware) II LLC, with 19.75%, number two Balanced Property Group (15.22%), and number three BlackRock Group (Black Rock Inc and related entities) (10.82%).

Dadi Engineering Development (Group) Co Ltd and related entities was the fourth largest shareholder (5.65%) while Renaissance Smaller Companies was fifth largest (5.26%).

— with John Miller, Tharun George

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Sun, 20 Jan 2019 16:45:00 +1100 https://www.proactiveinvestors.com.au/companies/news/212863/metro-mining-to-bring-bauxite-hills-mining-in-house-restart-operation-in-june-quarter-212863.html
<![CDATA[News - Metro Mining achieves guidance, ships over 2 million tonnes bauxite in 2018 ]]> https://www.proactiveinvestors.com.au/companies/news/211792/metro-mining-achieves-guidance-ships-over-2-million-tonnes-bauxite-in-2018-211792.html Metro Mining Ltd (ASX:MMI) has achieved its production guidance for 2018 shipping 2.037 million wet metric tonnes from its Bauxite Hills mine in north Queensland.

As planned, the 33rd and final vessel for 2018 completed loading on the 28 December and has departed for China.

Notably, despite Cyclone Owen’s December impact, 220,000 tonnes of bauxite was still loaded this month.

READ: Metro Mining re-elects Stephen Everett, Mark Sawyer, affirms ambitions

Metro’s managing director and CEO Simon Finnis said: “This is a great result for Metro; not only have we achieved guidance for 2018 in our first operational year, but we’ve done so after our operations have twice been interrupted by cyclones, at either end of the operating year.

“It is testament to our dedicated people on site that they’ve maintained focus and achieved our goals.”

Mining to be taken in-house

Metro has also decided to transition to owner-operator for the mining operation, and as a result has terminated the mining services agreement with SAB Mining.

With mining and shipping complete for 2018 and the wet season beginning, Metro will recommence operations in April 2019.

Metro expects no disruptions to operational activities from this change and has already commenced transitioning to the owner-operator model.

Finnis added: “Now that we’ve commissioned and ramped up the project during 2018, it is a natural transition to own and operate our mining equipment.

Increasing to 3.5 million tonnes production in 2019

“We have an excellent management team in place at the mine that is eminently capable of managing the mining function, so we see this as a logical step to increase efficiencies and reduce operating costs as we increase production to 3.5 million tonnes in calendar year 2019.”

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Mon, 31 Dec 2018 10:41:00 +1100 https://www.proactiveinvestors.com.au/companies/news/211792/metro-mining-achieves-guidance-ships-over-2-million-tonnes-bauxite-in-2018-211792.html
<![CDATA[News - Metro Mining Ltd re-elects Stephen Everett, Mark Sawyer, affirms ambitions ]]> https://www.proactiveinvestors.com.au/companies/news/209535/metro-mining-ltd-re-elects-stephen-everett-mark-sawyer-affirms-ambitions-209535.html Metro Mining Ltd (ASX:MMI) shareholders re-elected chairman Stephen Everett and his fellow director Mark Sawyer to the company board at today’s annual general meeting (AGM).

Investors in the company also voted to ratify and approve the company’s issue of shares to sophisticated and institutional investors and adopted its remuneration report.

Metro Mining will lift bauxite production to meet strong demand from customers

Outgoing director, DADI Engineering Development Group representative Xiaoming (Aaron) Yuan, withdrew his nomination for re-election at the meeting.

Substantial shareholder DADI is a Metro investor of eight years, it is also China’s largest coal industry engineering group.

Metro’s chairman Everett said, “I would like to acknowledge Mr Yuan’s and DADI’s contribution to the board of Metro Mining over the past eight years.

“I value the long association Metro has had with Mr Yuan and look forward to his continued assistance with our coal subsidiary.”

Yuan will become a director of a Metro subsidiary that holds its parent company’s coal assets.

Metro is undertaking a review of opportunities for the assets, including divesting them or forming a joint venture.

 

Metro published its chairman’s address to the market this morning, with Everett saying he congratulated the company’s team for its recent commissioning of Bauxite Hills Mine.

Everett told shareholders in the address: “Our 27th vessel has almost completed loading, and Metro is on track to deliver market guidance production and shipping tonnes of 2 million tonnes for 2018.

“Your company has confirmed contracts in place for all 2018 production to five different Chinese customers, and 69% of the expanded forecast 2019 production.

“We are steadfastly focussed and determined to further increase the value of your company and your investment in the years ahead.”

Metro Mining doubles ore shipment from Bauxite Hills as Chinese domestic supply tightens

The company has shipped more than 1.7 million tonnes of bauxite since its November 22, 2017 AGM.

Metro finalised its 2018 sales in September by signing a new binding contract with China’s state-owned State Power Investment Corporation Aluminium and Electric Power Investment Co. Ltd (SPIC), considered a key step towards a finalised offtake agreement.

Metro Mining powers ahead with Bauxite Hills output continuing to set records

Brisbane-based Metro’s annual output from the Bauxite Hills operation is expected to be increased to 3.5 million wet metric tonnes

The effort designed to meet customer demands is tipped to start in the March 2019 quarter.

Everett said, “This year your company has transitioned smoothly from a developer to a producer with a significant growth outlook and continues to look for ways to improve and take advantage of market forces.

“It must be said that we faced some early challenges but as our results are showing these have been addressed.

“Having said that, I acknowledge the shareholder barometer, the share price, has of late been disappointing – I guess we can take some solace in the fact that this has been the case across the broader resource industry.

“I firmly believe the current share price does not reflect the underlying success or value of your business.”

Metro is planning to increase investment community understanding of the potential of Australian bauxite and its “very real potential to offer an excellent investment platform”.

The company is also planning to update a stage II scenario from its definitive feasibility study (DFS) in the second half of 2019 to incorporate a production expansion to 6 million tonnes and then present an investment option to Metro’s board.

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Tue, 20 Nov 2018 02:48:00 +1100 https://www.proactiveinvestors.com.au/companies/news/209535/metro-mining-ltd-re-elects-stephen-everett-mark-sawyer-affirms-ambitions-209535.html
<![CDATA[News - Metro Mining will lift bauxite production to meet strong demand from customers ]]> https://www.proactiveinvestors.com.au/companies/news/208786/metro-mining-will-lift-bauxite-production-to-meet-strong-demand-from-customers-208786.html Metro Mining Ltd (ASX:MMI) will increase annual bauxite production from the Bauxite Hills project in Far North Queensland to 3.5 million wet metric tonnes (wmt) as it seeks to meet strong customer demand.

The company plans a series of initiatives and these will be predominately implemented in the March quarter of 2019 during the expected wet season shutdown with long lead items already ordered.

Economies of scale

Expanding operations are expected to result in increased sales revenue and lower unit costs via greater economies of scale as well as other operational benefits.

Shares were up almost 10% in early trade to 17 cents.

READ: Metro Mining doubles ore shipment from Bauxite Hills as Chinese domestic supply tightens

Metro’s managing director and CEO Simon Finnis said: “Metro has seen an increase in demand for our bauxite from a range of customers in China.

“The operation has now produced over 1.6 million wmt of bauxite and we have identified low-cost and short lead time initiatives to increase production next year.”

Planned initiatives

Metro’s planned initiatives include:

- Supplementing the truck and haulage fleet configuration; - Duplicating screening capacity at the Barge Loading Facility; - Accelerating installation of a jaw crusher to enable shipment of any oversized material; and - Supplementing the marine fleet and on-water infrastructure to maximise efficiency of tug and barge movements.

Much of Bauxite Hills’ existing plant and infrastructure has been designed to accommodate higher operating levels, which means the initiatives will be easy to implement and low-cost.

READ: Metro Mining powers ahead with Bauxite Hills output continuing to set records

A number of initiatives were part of the long-term stage II expansion to steady state production of 6 million wmt per annum, subject to definitive feasibility study (DFS) update and board approval, and as such will be brought forward.

The increase in production will allow Metro to deliver meaningful volumes to customers that have experienced shortages of domestic bauxite supply.

Product well accepted

Metro’s product has been well accepted in China with sales being made to a total of five customers to date.

Capital costs are expected to be approximately $6.8 million funded from a combination of Metro’s cash reserves and existing financing arrangements.

Finniss said: “The payback on the capital would be well within the 2019 calendar year, an excellent return.

“We have an outstanding platform to incrementally add to sales in 2019, increase operational cashflow, and assess in detail the stage II expansion opportunity.”

Stage II DFS to be updated

Metro will also update the DFS for the stage II expansion which will incorporate the operating experience to date and current bauxite market conditions in China.

This is currently planned to be completed in the second quarter of 2019.

READ: Metro Mining ramping up its award-winning bauxite mine

The company achieved an attributable (gross) sales revenue of $43.8 million during the September 2018 quarter.

September quarter shipments were 822,000 wmt, more than double the ore shipped in the June quarter, with bauxite shipped to five different Chinese customers including foundation customer Xinfa.

Metro remains on track to meet its production and shipping guidance of 1.98 – 2.075 million wmt for 2018.

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Thu, 08 Nov 2018 12:09:00 +1100 https://www.proactiveinvestors.com.au/companies/news/208786/metro-mining-will-lift-bauxite-production-to-meet-strong-demand-from-customers-208786.html
<![CDATA[News - Metro Mining doubles ore shipment from Bauxite Hills as Chinese domestic supply tightens ]]> https://www.proactiveinvestors.com.au/companies/news/207039/metro-mining-doubles-ore-shipment-from-bauxite-hills-as-chinese-domestic-supply-tightens-207039.html Metro Mining Ltd (ASX:MMI) has achieved an attributable (gross) sales revenue of $43.8 million during the September 2018 quarter from its Bauxite Hills project in Far North Queensland.

The September quarter shipments were 822,000 wet metric tonnes (WMT), more than double the ore shipped in the June quarter.

Notably, Bauxite was shipped to five different Chinese customers including Metro’s foundation customer Xinfa.

Metro remains on track to meet its production and shipping guidance of 1.98 – 2.075 million WMT for calendar year 2018.

READ: Metro Mining powers ahead with Bauxite Hills output continuing to set records

Performance at the barge loading facility continued to improve through the quarter with increasing operating rates reducing loading time for the barges and resulting in shorter turnaround times.

Modifications to the chutes and transfer points were completed to eliminate blockages and spillages and further calibration was made to the on-belt analyser to optimise quality control.

The moisture content in the bauxite is reducing as the operation moves through the dry season which will continue to assist in the performance of the screen and grizzly.

 

The transhipping component consisting of barge loading, delivery of barges to vessels and unloading them, continues to exceed expectations.

With the increased mining rates, work was undertaken to optimize tug and barge movements in line with the tide windows.

Performance during the quarter highlighted that loading rates into the Ocean-Going Vessels (OGV’s) can exceed the planned mining rates providing confidence in the targeted production for 2019.

Bauxite price movement

Imported bauxite prices in China increased 4% quarter-on-quarter to US$50.4 per dry metric tonne.

Environmental and other regulatory pressures continue to weigh on domestic bauxite supply, with domestic prices reaching record highs during Q3.

Metro’s available cash on hand and trade receivables as at September 30, 2018 was $38.2 million compared to $30.6 million at the end of the June quarter.

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Mon, 15 Oct 2018 16:04:00 +1100 https://www.proactiveinvestors.com.au/companies/news/207039/metro-mining-doubles-ore-shipment-from-bauxite-hills-as-chinese-domestic-supply-tightens-207039.html
<![CDATA[News - Metro Mining powers ahead with Bauxite Hills output continuing to set records ]]> https://www.proactiveinvestors.com.au/companies/news/206433/metro-mining-powers-ahead-with-bauxite-hills-output-continuing-to-set-records-206433.html Metro Mining Ltd (ASX:MMI) continues its strong bauxite output from the Bauxite Hills project in Far North Queensland with September quarter shipments double those of the previous quarter.

There were 822,000 tonnes of shipments in the three months compared to 399,000 tonnes in the June quarter.

Included in the total was a record monthly total of 297,000 tonnes in August, representing an annual rate of about 2.4 wet metric tonnes (wmt) during the planned 8-month operating window.

Metro’s managing director and CEO Simon Finnis said, “I am delighted to see how Bauxite Hills has gone through the ramp-up phase and into steady-state production in such a short period.

“Given the strong demand being seen for Bauxite Hills product, this provides an excellent platform to incrementally add to sales in 2019 and increase operational cashflow.”

Shares are up almost 5% to 21.5 cents and have increased 19% since Monday.

READ: Metro Mining passes 1-million tonne milestone of bauxite shipments to Chinese customers

In mid-September, the company shipped its one-millionth tonne, just five months after beginning operations in April 2018.

By the end of the quarter Metro’s total shipments had reached 1.22 million wmt and it remains on track to meet 2018 production and shipping guidance of 1.980 million to 2.075 million wmt.

Marketing proves successful

Metro’s marketing program has been successful with the output from the project being fully sold for 2018 and already more than 80% sold for 2019.

During the September quarter bauxite was shipped to five different Chinese customers including Metro’s foundation customer, Xinfa.

READ: Metro Mining ramping up its award-winning bauxite mine

The company is seeing strong demand for its bauxite from refineries in inland Chinese provinces where domestic supply has been hindered by recent mine closures and environmental audits.

Bauxite Hills’ product specifications are well suited to the processing requirements of these refineries.

Feedback from refiners highlights that the bauxite refines as anticipated and is similar to other products from the Weipa region, although being a direct shipping ore product results in different material handling characteristics.

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Fri, 05 Oct 2018 10:30:00 +1000 https://www.proactiveinvestors.com.au/companies/news/206433/metro-mining-powers-ahead-with-bauxite-hills-output-continuing-to-set-records-206433.html
<![CDATA[Media files - Metro Mining’s Bauxite Hills Mine in QLD sells all bauxite production for 2018 ]]> https://www.proactiveinvestors.com.au/companies/stocktube/10552/metro-minings-bauxite-hills-mine-in-qld-sells-all-bauxite-production-for-2018-10552.html Fri, 21 Sep 2018 16:00:00 +1000 https://www.proactiveinvestors.com.au/companies/stocktube/10552/metro-minings-bauxite-hills-mine-in-qld-sells-all-bauxite-production-for-2018-10552.html <![CDATA[News - Metro Mining passes 1-million tonne milestone of bauxite shipments to Chinese customers ]]> https://www.proactiveinvestors.com.au/companies/news/205390/metro-mining-passes-1-million-tonne-milestone-of-bauxite-shipments-to-chinese-customers-205390.html Metro Mining Ltd (ASX:MMI) has shipped one million tonnes of bauxite since beginning operations at its Bauxite Hills Mine north of Weipa in Far North Queensland on April 13, 2018.

The millionth tonne was loaded aboard the bulk carrier ISA OLDENDORFF as part of a 60,000-tonne shipment bound for Metro’s foundation customer Xinfa Group.

Metro’s managing director Simon Finnis said sales had been made to five different Chinese customers and 17 shipments had sailed since mining operations began.

READ: Metro Mining ramping up its award-winning bauxite mine

Managing director Simon Finnis.

“We have sold our total planned production for this year and have around 90% of next year’s production also covered,” he said.

“We are seeing particularly strong demand from refineries in inland Chinese provinces where supply of domestic bauxite has been hindered by recent mine closures and environmental audits.

“Our product specifications are well suited to the processing requirements of these refineries.”

Bauxite from the Bauxite Hills project.

READ: Metro Mining signs new binding offtake with China power company

Brisbane-based Metro has a 4-year binding offtake agreement to supply Xinfa with 1 million tonnes this year followed by 2 million tonnes for each of the next three years.

Pricing under the agreement is linked to a well-established alumina price index.

Xinfa is one of China’s largest integrated aluminium companies with significant refining and smelting operations.

Production increasing

Metro is mining Bauxite Hills at an initial annual rate of 2 million tonnes and, subject to board approval and expansion capital, will ramp up to 6 million tonnes over the first four years.

The company has government approvals in place to mine up to 10 million tonnes per annum.

Loading bauxite onto a barge.

“Production at the Bauxite Hills Mine is steadily increasing and given current demand we are actively looking at ways to increase 2019 production above the current planned rates,” Finnis said.

The shipment of the millionth tonne is another milestone for Metro with the mine becoming a globally significant bauxite operation feeding the growing seaborne bauxite market in a relatively short timeframe.

READ: Metro Mining named Australia’s leading emerging mining company

Last month Metro was recognised as Australia's leading Emerging Mining Company at the internationally recognised Diggers & Dealers Mining Forum in Kalgoorlie, WA.

Metro Mining’s Queensland projects.

Bauxite Hills has an estimated ore reserve of 92.2 million tonnes within a total resource of 144.8 million tonnes with an estimated 17-year mine life.

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Fri, 21 Sep 2018 12:03:00 +1000 https://www.proactiveinvestors.com.au/companies/news/205390/metro-mining-passes-1-million-tonne-milestone-of-bauxite-shipments-to-chinese-customers-205390.html
<![CDATA[News - Metro Mining ramping up its award-winning bauxite mine ]]> https://www.proactiveinvestors.com.au/companies/news/204220/metro-mining-ramping-up-its-award-winning-bauxite-mine-204220.html Metro Mining Ltd (ASX:MMI) was recognised in August 2018 as Australia’s leading emerging mining company at the globally renowned Diggers & Dealers resources conference in Kalgoorlie.

This was due to the successful development of its flagship 100% owned Bauxite Hills Mine in north Queensland.

After completing a bankable feasibility study (BFS) supporting a multi-billion dollar operation, mining commenced in April 2018.

All 2018 bauxite production has been sold

As of early September 2018, all 2018 production from the Bauxite Hills Mine has been sold.

Most recently, Metro signed a new binding contract with China’s state-owned State Power Investment Corporation Aluminium and Electric Power Investment Co. Ltd (SPIC).

READ: Metro Mining signs new binding off-take with China power company

Metro’s Managing Director Simon Finnis said: “We are delighted to have finalised a new off-take agreement with SPIC, who have the capacity to be another long term off-take partner and to have successfully sold all of Metro’s planned 2018 production.

"This year shipments will be made to five different Chinese customers confirming strong demand for Metro bauxite in China.

“We are experiencing particular interest from refineries located in the inland provinces where supply of domestic bauxite has been hindered by recent mine closures and environmental audits.

“Our product specifications are well suited to their processing requirements.”

Demand exceeds current availability

Finnis added: “Production at the Bauxite Hills Mine is steadily increasing, and we are confident of reaching production guidance for this year.

“Given current demand we are actively looking at ways to increase 2019 production above the current planned rates.”

Targeting 2 million tonnes of production in 2018

Metro began mining operations at its flagship project Bauxite Hills, 95 kilometres north of Weipa on western Cape York, in April this year.

The Brisbane-based company is ramping up strongly on its way to producing 2 million tonnes of bauxite for 2018.

Bauxite Hills has an estimated reserve of 92.2 million tonnes and total resources of 144.8 million tonnes and will deliver bauxite into China over a 17-year mine life.

READ: Metro Mining’s Bauxite Hills Mine on track to reach targeted operating rates

At July 2018, Metro was on track to meet its production and shipping guidance of 1.965 to 2.075 wet metric tonnes for the calendar year 2018.

The company noted in August that bauxite mined and shipped in June quarter either exceeded or was at upper end of re-stated guidance of 1.98 to 2.075 wet metric tonnes.

Long life mine delivering into strong Chinese market

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Thu, 06 Sep 2018 08:12:00 +1000 https://www.proactiveinvestors.com.au/companies/news/204220/metro-mining-ramping-up-its-award-winning-bauxite-mine-204220.html
<![CDATA[News - Metro Mining signs new binding off-take with China power company ]]> https://www.proactiveinvestors.com.au/companies/news/204018/metro-mining-signs-new-binding-off-take-with-china-power-company-204018.html Metro Mining Ltd (ASX:MMI) has signed a new binding contract with China’s state-owned State Power Investment Corporation Aluminium and Electric Power Investment Co. Ltd (SPIC).

The contract is for 300,000 tonnes +/- 10% of bauxite to be delivered in calendar year 2018 and follows a trial vessel previously delivered to SPIC.

The contract is based on market pricing with typical bonus and penalty clauses associated with product specifications.

READ: Metro Mining named Australia’s leading emerging mining company

Metro’s Managing Director Simon Finnis said: “We are delighted to have finalised a new off-take agreement with SPIC, who have the capacity to be another long term off-take partner and to have successfully sold all of Metro’s planned 2018 production.

"This year shipments will be made to five different Chinese customers confirming strong demand for Metro bauxite in China.

“We are experiencing particular interest from refineries located in the inland provinces where supply of domestic bauxite has been hindered by recent mine closures and environmental audits.

“Our product specifications are well suited to their processing requirements.”

Demand exceeds current availability

Finnis added: “Production at the Bauxite Hills Mine is steadily increasing, and we are confident of reaching production guidance for this year.

“Given current demand we are actively looking at ways to increase 2019 production above the current planned rates.”

Bauxite Hills production guidance this calendar year is 1.90 to 2.075 million tonnes.

Argonaut forecasts 40 cent price target

Last month, Perth-based broker Argonaut released a research report pertaining to Metro with a Buy recommendation and 40 cent target price.

This is more than double the current price of 19 cents, suggesting significant potential upside.

 

 

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Mon, 03 Sep 2018 13:03:00 +1000 https://www.proactiveinvestors.com.au/companies/news/204018/metro-mining-signs-new-binding-off-take-with-china-power-company-204018.html
<![CDATA[News - Metro Mining secures further offtake sales for production from Bauxite Hills ]]> https://www.proactiveinvestors.com.au/companies/news/202706/metro-mining-secures-further-offtake-sales-for-production-from-bauxite-hills-202706.html Metro Mining Ltd (ASX:MMI) has secured further bauxite offtake agreements with Chinese partners for 2018/2019 production from its Bauxite Hills operation in Far North Queensland.

The two new agreements mean that around 90% of Metro’s planned 2018 production is sold or contracted for sale, as well as 80% of its 2019 production.

Sales have been made into China’s Henan Province, where supply of domestic bauxite has been hindered by recent mine closures.

Strong demand for bauxite

Metro Mining managing director Simon Finnis said the agreements were another step in building acceptance of Metro bauxite and getting a stronger foothold in the Chinese market.

“These agreements are particularly pleasing as 2018 is now largely covered to a number of different customers, and we’ve started to sell material for next year.

“It demonstrates the strong demand for our bauxite in the Chinese market and supports our growth and marketing strategy.

“The mine continues to perform well with all commissioning issues well and truly behind us, and production continuing to increase month on month.”

 

READ: Metro Mining named Australia’s leading emerging mining company

Metro is continuing negotiations to sell the remaining 2018/2019 bauxite cargoes.

The new agreements represent a total of 780,000 tonnes of bauxite production, give or take 10%.

Around 580,000 tonnes of this will be for 2018 and the remainder, at the option of Metro Mining, in 2018 or 2019.

The contracts are based on market pricing with typical bonus and penalty clauses associated with the bauxite specification.

READ: Metro Mining’s Bauxite Hills Mine on track to reach targeted operating rates

Metro began mining operations at its flagship project Bauxite Hills, 95 kilometres north of Weipa on western Cape York, in April this year.

The Brisbane-based company is ramping up strongly on its way to producing 2 million tonnes of bauxite for 2018.

Bauxite Hills has an estimated reserve of 92.2 million tonnes and total resources of 144.8 million tonnes and will deliver bauxite into China over a 17-year mine life.

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Sun, 12 Aug 2018 22:07:00 +1000 https://www.proactiveinvestors.com.au/companies/news/202706/metro-mining-secures-further-offtake-sales-for-production-from-bauxite-hills-202706.html
<![CDATA[News - Metro Mining named Australia’s leading emerging mining company ]]> https://www.proactiveinvestors.com.au/companies/news/202531/metro-mining-named-australias-leading-emerging-mining-company-202531.html Metro Mining Ltd (ASX:MMI) has been recognised for getting the Bauxite Hills project in Far North Queensland operational by being named Australia’s leading emerging mining company.

The award was presented at the Diggers & Dealers Mining Forum in Kalgoorlie last night.

Metro began bauxite mining operations at its flagship project, Bauxite Hills, 95 kilometres north of Weipa on western Cape York, in April this year.

READ: Metro Mining’s Bauxite Hills Mine on track to reach targeted operating rates

The Brisbane-based company is ramping up strongly on its way to producing 2 million tonnes of bauxite this year.

Managing director & CEO Simon Finnis said the ‘Leading Emerging Mining Company Award’ was a significant achievement for the company.

“Most importantly, the award acknowledges the effort of our mine-site and support team.

“Considerable dedication”

“The mine was constructed in near record-breaking time and commencement of mining operations and quick ramp-up has involved considerable dedication and, of course, hard work.

“Since April we have shipped 11 vessels and 689,566 tonnes of bauxite.”

Bauxite Hills has an estimated reserve of 92.2 million tonnes and total resources of 144.8 million tonnes and will deliver bauxite into China over a 17-year mine life.

Monthly mining rates are approaching budgeted operating rates and in June the operation averaged 8,167 wet metric tonnes (wmt) of bauxite per day.

Production guidance for 2018 is 1.965 million to 2.075 million wmt.

READ: Metro Mining raises $17.5 million as production ramp-up at Bauxite Hills Mine continues

The Diggers & Dealers Mining Forum features Australia’s leading listed mining and exploration companies.

It is held annually in Kalgoorlie, Western Australia, the country’s unofficial gold mining capital. Attendees include mining and exploration companies, brokers, bankers, investors, financiers and mining service industries.

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Thu, 09 Aug 2018 09:23:00 +1000 https://www.proactiveinvestors.com.au/companies/news/202531/metro-mining-named-australias-leading-emerging-mining-company-202531.html
<![CDATA[News - Metro Mining director Dongping Wang retires from the company’s board ]]> https://www.proactiveinvestors.com.au/companies/news/201695/metro-mining-director-dongping-wang-retires-from-the-companys-board-201695.html Metro Mining Ltd (ASX:MMI) director Dongping Wang has retired from the company’s board after eight years of service with Xiaoming Yuan appointed in his place.

Wang was originally appointed to the board in 2010 as a representative of DADI Engineering Development Group, China’s largest coal industry engineering group.

Alternate steps up to role

Yuan, who lives in Australia, has stepped up to the role after serving as Wang’s alternate non-executive director.

Metro chairman Stephen Everett said: “I would like to acknowledge Mr Dongping Wang and DADI’s contribution to the board of both MetroCoal and Metro Mining over the past eight years.

“I value the long association Metro has had with Mr Wang and wish him all the very best in his future endeavours.

“DADI valued supporters”

“DADI have been long and valued supporters of Metro and I welcome Mr Yuan to the Metro Mining board as a non-executive director.

“Mr Yuan has performed the role of alternate director proficiently for Mr Wang since 2014 and I support and endorse his move to non-executive director.”

READ: Metro Mining’s Bauxite Hills Mine on track to reach targeted operating rates

Metro’s Bauxite Hills Mine in Far North Queensland is achieving consistent production results on a daily basis and is on track to meet production and shipping guidance for 2018.

The company aims to produce 1.965 million to 2.075 million wet metric tonnes (wmt) of bauxite for the year.

In June mining rates averaged 8,167 wmt per day and the trend in ship loading rates continues to rise with the last ship that month loading in just 7.1 days.

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Fri, 27 Jul 2018 10:28:00 +1000 https://www.proactiveinvestors.com.au/companies/news/201695/metro-mining-director-dongping-wang-retires-from-the-companys-board-201695.html
<![CDATA[News - Metro Mining’s Bauxite Hills Mine on track to reach targeted operating rates ]]> https://www.proactiveinvestors.com.au/companies/news/199993/metro-minings-bauxite-hills-mine-on-track-to-reach-targeted-operating-rates-199993.html Metro Mining Ltd’s (ASX:MMI) Bauxite Hills Mine in Queensland has experienced a steady ramp-up during the quarter and is now approaching the budgeted operating rates and achieving very consistent results on a daily basis.

Notably, June mining rates averaged 8,167 wet metric tonnes of bauxite per day and the trend in ship loading rate is continuing to rise with the last ship loading in just 7.1 days.

Metro is well on track to meet its production and shipping guidance of 1.965 – 2.075 wet metric tonnes for the calendar year 2018.

Metro managing director and chief executive officer Simon Finnis said: “While it was a challenging start to the quarter, I am extremely proud of how the site team and our contract partners responded to resolving issues as they arose.

“All aspects of the operation have finished the quarter performing strongly, and I Iook forward to the project reaching targeted operating rates during the September quarter”.

READ: Metro Mining raises $17.5 million as production ramp up at Bauxite Hills Mine continues

Last month, Metro successfully completed a bookbuild to raise $17.5 million via an institutional placement, at an issue price of 20 cents per share.

The placement was heavily oversubscribed with strong support from Metro’s existing shareholders, along with significant demand from new domestic and international institutional investors.

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Tue, 03 Jul 2018 12:35:00 +1000 https://www.proactiveinvestors.com.au/companies/news/199993/metro-minings-bauxite-hills-mine-on-track-to-reach-targeted-operating-rates-199993.html
<![CDATA[News - Metro Mining has renowned Australian fund manager become major shareholder ]]> https://www.proactiveinvestors.com.au/companies/news/199902/metro-mining-has-renowned-australian-fund-manager-become-major-shareholder-199902.html Metro Mining Ltd (ASX:MMI) has had Renaissance Smaller Companies Pty Ltd lodge its notice of initial substantial shareholder after accumulating a 5.34% holding in the company.

Renaissance is a Sydney-based, privately owned boutique fund manager that specialises in small companies listed on the ASX.

READ: Metro Mining raises $17.5 million as production ramp up at Bauxite Hills Mine continues

Recently, Metro completed a bookbuild to raise $17.5 million through an institutional placement priced at 20 cents per share.

The placement was heavily oversubscribed with strong support from Metro’s existing shareholders, along with significant demand from new domestic and international institutional investors.

READ: Metro Mining shares halted to conduct share placement

Funding from the placement will increase balance sheet strength and flexibility, ensuring a strong working capital position during production ramp up and product sale negotiations.

CY2018 production guidance maintained

Although start-up was delayed due to weather, the production ramp-up is continuing.

Positively, bauxite shipped in the June quarter is expected to still reach the lower end of previously stated guidance.

Furthermore, guidance for bauxite shipped during the upcoming September and December quarters has been revised upwards.

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Mon, 02 Jul 2018 08:27:00 +1000 https://www.proactiveinvestors.com.au/companies/news/199902/metro-mining-has-renowned-australian-fund-manager-become-major-shareholder-199902.html
<![CDATA[News - Metro Mining raises $17.5 million as production ramp up at Bauxite Hills Mine continues ]]> https://www.proactiveinvestors.com.au/companies/news/199181/metro-mining-raises-175-million-as-production-ramp-up-at-bauxite-hills-mine-continues-199181.html Metro Mining Ltd (ASX:MMI) has successfully completed a bookbuild to raise $17.5 million via an institutional placement, at an issue price of 20 cents per share.

The placement was heavily oversubscribed with strong support from Metro’s existing shareholders, along with significant demand from new domestic and international institutional investors.

Notably, the placement was upsized by $2.5 million due to strong demand.

READ: Metro Mining receives first revenue and accelerates ramp-up

The company recently received its first payment from off-take partner Xinfa Group as its first two shipments of bauxite have successfully arrived in China.

Xinfa is one of China’s largest integrated aluminium companies, with significant refining and smelting operations across multiple provinces.

With the successful first shipments all being delivered to Xinfa as planned, Metro is experiencing increasing buying interest for bauxite from its Bauxite Hills Mine in north Queensland.

READ: Metro Mining kicks off mining at Bauxite Hills in Far North Queensland

The new funds will increase Metro’s balance sheet strength and flexibility, ensuring a strong working capital position during production ramp-up and product sale negotiations.

Metro managing director Simon Finnis said: “We are very pleased by the strong support and demand for the institutional placement from existing shareholders and new high-quality investors.

“This capital raising strengthens Metro’s balance sheet as we continue to successfully ramp-up production at the Bauxite Hills Mine and make Metro a leading independent seaborne bauxite supplier into China.”

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Wed, 20 Jun 2018 12:23:00 +1000 https://www.proactiveinvestors.com.au/companies/news/199181/metro-mining-raises-175-million-as-production-ramp-up-at-bauxite-hills-mine-continues-199181.html
<![CDATA[News - Metro Mining shares halted to conduct share placement ]]> https://www.proactiveinvestors.com.au/companies/news/198987/metro-mining-shares-halted-to-conduct-share-placement-198987.html Metro Mining Ltd (ASX:MMI) has been granted a trading halt as it looks to raise up to $17.5 million through a share placement priced at 20 cents.

Funding from the placement will increase balance sheet strength and flexibility, ensuring a strong working capital position during production ramp up and product sale negotiations.

READ: Metro Mining receives first revenue and accelerates ramp-up

Earlier this month, Metro received its first payment from off-take partner Xinfa Group as its first two shipments of bauxite have successfully arrived in China.

Xinfa is one of China’s largest integrated aluminium companies, with significant refining and smelting operations across multiple provinces.

With the successful first shipments all being delivered to Xinfa as planned, Metro is experiencing increasing buying interest for bauxite from its Bauxite Hills Mine in north Queensland.

CY2018 production guidance maintained

Although start-up was delayed due to weather, the production ramp-up is continuing.

Positively, bauxite shipped in the June quarter is expected to still reach the lower end of previously stated guidance.

Furthermore, guidance for bauxite shipped during the upcoming September and December quarters has been revised upwards.

Notably, recruitment of site-based staff is now largely complete with indigenous employees comprising about 34% of the workforce.

$10 million of placement pre-committed

The share placement aims to raise about $15.0 million, with the ability to take oversubscriptions to raise up to an additional $2.5 million.

The lead manager has received pre-commitments exceeding $10 million.

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Mon, 18 Jun 2018 11:34:00 +1000 https://www.proactiveinvestors.com.au/companies/news/198987/metro-mining-shares-halted-to-conduct-share-placement-198987.html
<![CDATA[News - Metro Mining heads to market ]]> https://www.proactiveinvestors.com.au/companies/news/198983/metro-mining-heads-to-market-198983.html Metro Mining Ltd (ASX:MMI) remains focussed on its Bauxite Hills Mine, which is in production just 10 months after construction commenced.

The company recently received its first payment from off-take partner Xinfa Group following the first shipment of bauxite arriving in China.

READ: Metro Mining receives first revenue and accelerates ramp-up

Metro is now heading to market with a capital raising, and the ASX has granted a trading halt to prepare.

The halt will remain in place until the opening of trade on Wednesday 20 June 2018, or earlier if an announcement is made to the market.

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Mon, 18 Jun 2018 10:03:00 +1000 https://www.proactiveinvestors.com.au/companies/news/198983/metro-mining-heads-to-market-198983.html
<![CDATA[News - Metro Mining receives first revenue and accelerates ramp-up ]]> https://www.proactiveinvestors.com.au/companies/news/198144/metro-mining-receives-first-revenue-and-accelerates-ramp-up-198144.html Metro Mining Ltd (ASX:MMI) has received its first payment from off-take partner Xinfa Group as its first two shipments of bauxite have successfully arrived in China.

Xinfa is one of China’s largest integrated aluminium companies, with significant refining and smelting operations across multiple provinces.

With the successful first shipments all being delivered to Xinfa as planned, Metro is experiencing increasing buying interest for bauxite from its Bauxite Hills Mine in north Queensland.

READ: Metro Mining on track to load targeted 10,000 tonnes of bauxite per day following first shipment

Metro’s managing director and CEO Simon Finnis said: “Receiving first sales revenue is another exciting milestone for Metro and heralds in a new era for us.

“I’m pleased with our ramp-up and the improvement in mining and loading rates from pit to ship as the commissioning issues are steadily resolved.”

Attractive sales price achieved

Metro has a four year binding off-take agreement to supply Xinfa with one million tonnes in the first year followed by two million tonnes per annum for each of the next three years.

Pricing under the off-take agreement is confidential but is linked to a well-established alumina price index.

This price index is currently at high levels and provides Metro with an attractive premium sales price relative to the spot bauxite market prices.

Ramp-up activities are accelerating

Ramp-up activities at the Bauxite Hills Mine are accelerating, with commissioning issues being steadily resolved and a number of planned operational improvements being implemented.

Mining and barge loading rates are continuing to trend higher, with bauxite loaded from site to ship now averaging over 6,000 tonnes per day.

The transhipment process has performed in line with expectations, with no operational issues recorded.

Based on planned mining and shiploading rates, Metro expects to achieve its targeted production rate of around two million tonnes for the calendar year 2018.

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Mon, 04 Jun 2018 12:55:00 +1000 https://www.proactiveinvestors.com.au/companies/news/198144/metro-mining-receives-first-revenue-and-accelerates-ramp-up-198144.html
<![CDATA[News - Metro Mining on track to load targeted 10,000 tonnes of bauxite per day following first shipment ]]> https://www.proactiveinvestors.com.au/companies/news/196791/metro-mining-on-track-to-load-targeted-10000-tonnes-of-bauxite-per-day-following-first-shipment-196791.html Metro Mining Ltd’s (ASX:MMI) share price has retraced over the last three months after the bauxite producer hit an all-time high of 35 cents in February.

While there were disruptions from extreme weather at the start of the year, the Bauxite Hills mine in Queensland wasn’t unduly disrupted.

It has basically been a good news period, yet the share price of 25 cents implies a substantial discount to the consensus 12-month price target of 31 cents.

First shipment to Xinfa

Consequently, this may be time to examine a stock that has been a well-deserved market darling over the last two years as it forged its position in the niche bauxite industry.

Management has met every milestone along the way from exploration to construction, production and export.

Regards the latter, Metro’s first shipment of 62,000 tonnes was shipped on May 7 to Xinfa Group in China, one of the country’s largest integrated aluminium companies.

Metro has a 4-year binding offtake agreement to supply Xinfa with one million tonnes in the first year followed by 2 million tonnes per annum for each of the next 3 years.

Pricing under the agreement is linked to a well-established alumina price index.

On target to meet 2018 guidance

Since the first shipment, bauxite was loaded from site to ship at an average rate of more than 7,000 tonnes per day.

Management expects to reach its 2018 target average of 10,000 tonnes per day by the end of June.

Could share price weakness be linked to commodity price

Given everything went to plan with the first shipment and Metro is set to meet its 2018 guidance, it is difficult to understand the retracement in the company’s share price.

The most likely reason appears to be a decline in the bauxite price as indicated by the CBIX chart below.

This points to a price of about US$47 per dry metric tonne as at mid-April.

Still above BFS assumptions

If this is responsible for the share price retracement, it needs to be put in perspective.

The bankable feasibility study (BFS) was worked on a mid-range cost, insurance and freight (CIF) bauxite price of about US$45 per tonne.

The current price is still broadly in line with that range.

Attractive fundamentals remain in place

This indicates that the compelling fundamentals which underpinned the project at the BFS stage are still in place.

It is worth reflecting on Metro’s share price performance from the time the BFS was released on March 15, 2017.

At that stage, Metro was trading at 13 cents but as investors crunched the numbers, offtake agreements were negotiated and financing was arranged, the company’s shares surged.

By October, Metro’s share price had roughly doubled and despite the fact that the number of shares on issue increased substantially, the share price momentum remained.

Revisiting the numbers

Given little has changed except for the fact that the project has been de-risked by virtue of the fact that it is now in production and shipping ore, perhaps it’s time to run the numbers.

The other factor to bear in mind is that the company has a number of offtake agreements in place which provides additional comfort in terms of product sales.

On the sales front, the BFS assumes a steady-state production rate of 6 million tonnes per annum over a mine life of 17 years.

$2.5 billion in underlying earnings

The project is forecast to generate earnings before interest, tax, depreciation and amortisation (EBITDA) of $2.5 billion.

Based on the BFS, the payback period of initial capital is less than two years.

These metrics indicate that there is scope for the company to maintain profitability in a lower price environment.

Tightening of supply in China

However, it would appear that the bauxite price may find support fairly soon.

The continuing environmental pressure on mines in China has led to a tightening of bauxite supply in the inland provinces.

These areas have begun to take trial shipments of imported bauxite, mainly from Australia, as part of the bauxite supply mix.

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Fri, 11 May 2018 13:16:00 +1000 https://www.proactiveinvestors.com.au/companies/news/196791/metro-mining-on-track-to-load-targeted-10000-tonnes-of-bauxite-per-day-following-first-shipment-196791.html
<![CDATA[News - Metro Mining reveals increase from major shareholder BlackRock Group ]]> https://www.proactiveinvestors.com.au/companies/news/196593/metro-mining-reveals-increase-from-major-shareholder-blackrock-group-196593.html Metro Mining Ltd (ASX:MMI) has revealed that major shareholder, BlackRock Group, has increased its equity position in the company by 16.2 million shares to 10.42%.

BlackRock increased its position through a number of on-market trades and now holds 134.7 million shares in the bauxite miner.

READ: Metro Mining ships first bauxite from mine destined for China

Earlier this week, Metro sent its first shipment of 62,000 tonnes of bauxite to China from its flagship Bauxite Hills Mine in northern Queensland.

The delivery is part of a four-year offtake agreement with Xinfa Group, one of China’s largest integrated aluminium companies.

Under the agreement, Metro will supply one million tonnes in the first year followed by two million tonnes for each of the following three years.

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Wed, 09 May 2018 08:57:00 +1000 https://www.proactiveinvestors.com.au/companies/news/196593/metro-mining-reveals-increase-from-major-shareholder-blackrock-group-196593.html
<![CDATA[News - Metro Mining ships first bauxite from mine destined for China ]]> https://www.proactiveinvestors.com.au/companies/news/196455/metro-mining-ships-first-bauxite-from-mine-destined-for-china-196455.html Metro Mining Ltd (ASX:MMI) has sent its first shipment of 62,000 tonnes of bauxite to China from its flagship Bauxite Hills Mine in northern Queensland.

The delivery is part of a four year offtake agreement with Xinfa Group, one of China’s largest integrated aluminium companies.

Under the agreement, Metro will supply one million tonnes in the first year followed by two million tonnes for each of the following three years.

A second bulk carrier has arrived.

READ: Metro Mining expected to generate underlying earnings of $2.5 billion from Bauxite Hills

Metro’s managing director and CEO Simon Finnis said: “Once again I wish to congratulate the entire Metro team. Whilst the first shipment is an extremely exciting event it is also very demanding and has been another job well done.”

The Bauxite Hills Mine has an estimated ore reserve of 92.2 million tonnes and a total resource of 144.8 million tonnes with an estimated 17-year mine life.

The mine now becomes a globally significant bauxite mining operation and will feed the growing seaborne bauxite market.

READ: Metro Mining kicks off mining at Bauxite Hills in Far North Queensland

Over the last few days, the project loaded bauxite from site to ship at an average rate over 7,000 tonnes per day (tpd).

This is expected to reach Metro’s 2018 target average of 10,000tpd by the end of June.

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Mon, 07 May 2018 09:39:00 +1000 https://www.proactiveinvestors.com.au/companies/news/196455/metro-mining-ships-first-bauxite-from-mine-destined-for-china-196455.html
<![CDATA[News - Metro Mining kicks off mining at Bauxite Hills in Far North Queensland ]]> https://www.proactiveinvestors.com.au/companies/news/194992/metro-mining-kicks-off-mining-at-bauxite-hills-in-far-north-queensland-194992.html Metro Mining Ltd (ASX:MMI) has started mining at its Bauxite Hills project in Far North Queensland with the first bauxite shipment to China expected this month.

Initial mining is at an annual rate of 2 million tonnes and this will ramp-up to 6 million tonnes over the first four years, subject to expansion capital.

“A globally significant operation”

Managing director and CEO Simon Finnis said Bauxite Hills would be a globally significant bauxite mining operation feeding the ever-growing seaborne bauxite market.

“The Bauxite Hills Mine will become the largest independent mine within the internationally acclaimed Weipa Bauxite Region.”

READ: Metro Mining expected to generate underlying earnings of $2.5 billion from Bauxite Hills

Government approvals are in place to mine up to 10 million tonnes per annum at the operation on Cape York.

The mine is expected to employ up to 200 people including a significant indigenous workforce target.

Offtake with Xinfa Group

Metro’s first shipment has been purchased by the Xinfa Group one of China’s largest integrated aluminium companies.

Xinfa has significant refining and smelting operations in Shandong, Shanxi, Guangxi and Xinjiang provinces.

Metro has a four-year binding offtake agreement to supply Xinfa with 1 million tonnes in the first year followed by 2 million tonnes for each of the next three years.

First shipment of 60,000 tonnes

The first vessel has been booked to arrive on April 19 to collect a cargo of around 60,000 tonnes of bauxite bound for Shandong province.

“Commencement of mining operations is a credit to the entire Metro team,” Finnis said.

“Site management and the mining, marine and construction personnel have delivered the project in a very short time-frame and are to be congratulated.”

“It was an extraordinary achievement to complete most of construction of a world-class mine in just five months,” he added.

17-year mine life

Bauxite Hills has an estimated ore reserve of 92.2 million tonnes and a total resource of 144.8 million tonnes with an estimated 17-year mine life.

This may be extended through the conversion of resources to reserves and from any further exploration success in surrounding regional tenements.

The project is forecast to generate underlying earnings of $2.5 billion over the current mine life.

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Mon, 16 Apr 2018 09:45:00 +1000 https://www.proactiveinvestors.com.au/companies/news/194992/metro-mining-kicks-off-mining-at-bauxite-hills-in-far-north-queensland-194992.html
<![CDATA[News - Metro Mining cleans up after cyclone, will start mining bauxite during week of April 9 ]]> https://www.proactiveinvestors.com.au/companies/news/193919/metro-mining-cleans-up-after-cyclone-will-start-mining-bauxite-during-week-of-april-9-193919.html Metro Mining Ltd (ASX:MMI) will start mining bauxite from its Bauxite Hills project in North Queensland in the week of April 9 to 13.

The start date was pushed back by a week owing to the imminent arrival of cyclone Nora, which passed the site on Saturday morning.

Despite the cyclone bringing high winds and heavy rain, there were no injuries to personnel or damage to the site and the clean-up is underway.

Workforce re-mobilising to site

The Bauxite Hills workforce is re-mobilising to the site after being evacuated ahead of the cyclone.

Managing director and CEO Simon Finnis said: “We are very pleased with the efforts of all personnel in preparing for the cyclone and implementing the orderly evacuation from site.

“We congratulate and thank all those involved.”

Barge arrives carrying equipment

Despite the inclement weather, a barge carrying mining equipment has arrived at the mine site and has been unloaded.

Equipment is on site ready to start mining bauxite.

It is not expected that the delay will have any impact on the 2018 production target for the project.

READ: Metro Mining expected to generate underlying earnings of $2.5 billion from Bauxite Hills

Production will start at an initial annual rate of 2 million tonnes, increasing to a steady state 6 million tonnes over the first four years.

Metro Mining has environmental approvals in place allowing production of up to 10 million tonnes per annum, leaving it well-placed to ramp-up output if required.

The project has been estimated to generate average annual underlying earnings of $145 million and underlying earnings of $2.5 billion over a 17-year mine life.

Bauxite Hills covers a large tenement package of 1800 square kilometres in the Cape York region of Queensland.

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Wed, 28 Mar 2018 11:40:00 +1100 https://www.proactiveinvestors.com.au/companies/news/193919/metro-mining-cleans-up-after-cyclone-will-start-mining-bauxite-during-week-of-april-9-193919.html
<![CDATA[News - Metro Mining to start bauxite mining operations next month despite weather ]]> https://www.proactiveinvestors.com.au/companies/news/193665/metro-mining-to-start-bauxite-mining-operations-next-month-despite-weather-193665.html Metro Mining Ltd (ASX:MMI) is still expecting to commence mining operations next month at its Bauxite Hills Project in the Cape York region of Queensland.

The incoming cyclone Nora is expected to delay mining operations but the company expects the delays to only be up to one week.

Mining operations were due to commence during the week beginning April 2, 2018.

Taking precautions on site for safety

While the predicted cyclone path does not directly impact Bauxite Hills, the mine-site is within the range of a possible cyclone path.

As a result, Metro has implemented safety procedures to minimise risk to its workforce and flown out all non-essential staff and contractors.

A caretaker workforce will remain on site until it considered safe for the full workforce to return.

No changes to the 2018 production target

Notwithstanding this, there is not expected to be any change to the 2018 production target for the project.

READ: Metro Mining expected to generate underlying earnings of $2.5 billion from Bauxite Hills

Metro Mining is forecast to generate underlying earnings of $2.5 billion from the Bauxite Hills Project over a 17-year mine life.

The bankable feasibility study (BFS) indicates annualised production of 6 million tonnes per annum, generating average annual underlying earnings of $145 million.

Metro has environmental approvals in place which will allow production of up to 10 million tonnes per annum, leaving it well-placed to ramp up output if required.

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Fri, 23 Mar 2018 13:06:00 +1100 https://www.proactiveinvestors.com.au/companies/news/193665/metro-mining-to-start-bauxite-mining-operations-next-month-despite-weather-193665.html
<![CDATA[News - Metro Mining on target to commence bauxite mining in April ]]> https://www.proactiveinvestors.com.au/companies/news/192092/metro-mining-on-target-to-commence-bauxite-mining-in-april-192092.html Metro Mining Ltd (ASX:MMI) is on track to commence mining operations at its Bauxite Hills Project in April 2018.

The project spans a large tenement package of 1800 square kilometres in the Cape York region of Queensland.

READ: Metro Mining expected to generate underlying earnings of $2.5 billion from Bauxite Hills

Metro Mining is forecast to generate underlying earnings of $2.5 billion from the Bauxite Hills Project over a 17-year mine life.

The initial capital costs for the project is $35.8 million, and the mine life is 17 years with a payback period of less than two years.

READ: Metro Mining signs new offtake for Queensland bauxite mine

The company has signed offtake deals with high profile customers, including two China-based entities for 13.5 million tonnes in the first four years of production.

Industry dynamics appear to be working in Metro’s favour with some Chinese producers having to close mines due to environmental issues.

Price movements have indicated this trend with domestic bauxite prices in China’s Henan Province increasing circa 40% to RMB500 per tonne between 2016 and 2017.

New chief financial officer and company secretary appointed

In some recent management changes, Duane Woodbury has been appointed interim chief financial officer.

Woodbury has more than 20 years’ experience in the resources sector across various financial, commercial, banking and treasury roles both in Australia and overseas.

Metro has appointed Amy Treble, a chartered accountant, to the position of company secretary.

Woodbury and Treble replace the outgoing Scott Waddell.

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Fri, 23 Feb 2018 12:39:00 +1100 https://www.proactiveinvestors.com.au/companies/news/192092/metro-mining-on-target-to-commence-bauxite-mining-in-april-192092.html
<![CDATA[News - Metro Mining expected to generate underlying earnings of $2.5 billion from Bauxite Hills ]]> https://www.proactiveinvestors.com.au/companies/news/190514/metro-mining-expected-to-generate-underlying-earnings-of-25-billion-from-bauxite-hills-190514.html Metro Mining Ltd (ASX:MMI), a soon-to-be bauxite producer recently notched up its six-month anniversary from the date the company completed a $38 million capital raising.

Funds have been used in the construction and development of its Bauxite Hills Project which is forecast to generate underlying earnings of $2.5 billion over a 17 year mine life. 

Mining operations at Bauxite Hills remain on schedule to start April 2018.

The project spans a large tenement package of 1800 square kilometres in the Cape York region of Queensland.

Shares have doubled since capital raising

The raising was priced at $0.135 per share, a 10% discount to the previous day’s closing price.

Investors who participated in the raising and existing shareholders have watched its shares more than double since then, hitting $0.30 on January 4.

This is the highest level Metro Mining has traded at since acquiring the mine in 2014.

Ready access to capital driven by project confidence

Metro has conducted two capital raisings for a total of circa $61 million, and these have been instrumental in the company’s progress on a corporate and operational front.

Both were well supported, a reflection of management’s track record of underpromising and outperforming.

It also indicated the positive manner in which large corporates view the project.

The 2017 mine construction program has recently been delivered on time and within budget.

READ: Metro Mining's construction of the Bauxite Hills Mine is on time and within budget

Ready access to funds also paved the way for the acquisition of Gulf Alumina in 2017.

Placements provide funding for development and acquisition

The Gulf Alumina acquisition was a transformational development for Metro as it added considerable scale to the Bauxite Hills project and provided essential infrastructure.

Its positive impact on the company's production capacity was considerable as it almost doubled reserves and resources.

Simon Finnis, managing director, said: “Apart from the obvious addition of bauxite resources and reserves, and access to existing infrastructure, it allowed us to increase production over an extended mine life.

“This gives us significant advantages over our peers and added appeal to Chinese customers who are increasingly looking for long-term secure supplies of bauxite.”

Reserves estimate is the basis for global scale operation

A bankable feasibility study (BFS) established a resource of circa 145 million tonnes and reserves of 92 million tonnes.

The reserves estimate is the basis for the company's global scale bauxite mining operation.

Metro's  BFS highlights some impressive financial metrics, but perhaps the most eye-catching is the nominal cost compared with the subsequent life of mine earnings.

The initial capital costs for the project is $35.8 million, and the mine life is 17 years with a payback period of less than two years.

An internal rate of return (IRR) of 81% based on underlying earnings of $2.5 billion is comparatively high compared with many other mining projects.

Offtake agreements provide earnings predictability

One of the other benefits of consistently meeting milestones is often the attraction of high profile customers.

This has come to fruition for Metro with two China-based entities, one state-owned, negotiating offtake agreements for 13.5 million tonnes in the first four years of production.

Xinfa Group is one of the largest integrated aluminium companies in China with refining and smelting operations across four provinces.

It has signed a binding offtake agreement, committing to 1 million tonnes in the first year of operation and 2 million tonnes per year for each of the following three years.

Chinese state-owned enterprise agrees to take 6.5 million tonnes

A similar 6.5 million tonnes offtake agreement was negotiated in December with Chinese state-owned enterprise SPIC Aluminium and Electric Power Investment Company Ltd.

Finnis said: “Once again this demonstrates the strong appetite for our bauxite in the Chinese refining market, and validates our mining and marketing strategy.”

READ: Metro Mining signs new offtake for Queensland bauxite mine

The agreement is in the form of a non-binding memorandum of understanding which incorporates the supply of 500,000 tonnes in 2018.

This increases incrementally to 3 million tonnes in 2021.

Metro has also negotiated another non-binding agreement of 2.5 million tonnes, and management expects further interest from other Chinese end-users.

Substantial amount of production covered by offtake agreements

Metro will commence production in April at an initial rate of 2 million tonnes per annum, increasing to a steady state 6 million tonnes per annum over the first four years.

This indicates that offtake agreements will account for a substantial proportion of production over the next four years.

Industry dynamics appear to be working in Metro’s favour with some Chinese producers having to close mines due to environmental issues.

Price movements have indicated this trend with domestic bauxite prices in China’s Henan Province increasing circa 40% to RMB500 per tonne between 2016 and 2017.

In tandem with this trend has been the emergence of new alumina refineries in China which are seeking long-term, high-volume bauxite supply.

Production could increase to 10 million tonnes per annum

Metro has environmental approvals in place which will allow production of up to 10 million tonnes per annum, leaving it well-placed to ramp up output if required.

This would require an expansion of the company’s existing processing facilities.

However, at that stage the company’s cash flow could see it in a position to self-fund the development of a plant with additional capacity.

BFS indicates steady state annual underlying earnings of $145 million

The BFS indicates annualised production of 6 million tonnes per annum, generating average annual underlying earnings of $145 million.

The pre-production capex is priced at $35.8 million with a planned expansion in years two and three priced at an additional $36.7 million.

The case for further, currently unplanned expansion could be strengthened should the company have exploration success across its large tenement position, resulting in increased resources and reserves.

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Tue, 30 Jan 2018 09:18:00 +1100 https://www.proactiveinvestors.com.au/companies/news/190514/metro-mining-expected-to-generate-underlying-earnings-of-25-billion-from-bauxite-hills-190514.html
<![CDATA[News - Metro Mining signs new offtake for Queensland bauxite mine ]]> https://www.proactiveinvestors.com.au/companies/news/189129/metro-mining-signs-new-offtake-for-queensland-bauxite-mine-189129.html Metro Mining Ltd (ASX:MMI) has signed a non-binding Memorandum of Understanding regarding an offtake agreement from the Bauxite Hills Mine in Far North Queensland.

The agreement is with Chinese state-owned company SPIC Aluminium and Electric Power Investment Co Ltd.

It covers the supply of 6.5 million tonnes of bauxite over four years starting in 2018.

READ: Metro Mining commissions critical infrastructure at Bauxite Hills Mine

The Bauxite Hills Mine is on schedule to begin production in April 2018 following the end of the wet season.

The Memorandum of Understanding complements Metro’s existing binding offtake agreement with Xinfa for 7 million tonnes over four years.

The company also has a non-binding Letter of Intent with Lubei Chemicals with negotiations regarding a binding offtake agreement continuing.

Agreements represent 100% of initial output

Taken together these agreements represent 100% of the mine’s planned output from 2018 and 2019, and 90% of the possible expanded capacity from 2020 and 2021.

Simon Finnis, managing director, said: “Once again this demonstrates the strong appetite for our bauxite in the Chinese refining market, and validates our mining and marketing strategy.”

Sales from the SPIC agreement are expected to start in May 2018 with 500,000 tonnes to be supplied in 2018, 1 million tonnes in 2019, 2 million in 2020 and 3 million in 2021.

Large, state-owned enterprise

The parent company of SPIC, State Power Investment Corporation, is a large state-owned enterprise.

It was recently established through the merger of China Power Investment Corporation and State Nuclear Power Technology Corporation.

The aluminium division, SPIC Aluminium and Electric Power Investment, has annual aluminium smelting capacity of 2.5 million tonnes and alumina refining capacity of 2.6 million tonnes.

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Thu, 21 Dec 2017 12:59:00 +1100 https://www.proactiveinvestors.com.au/companies/news/189129/metro-mining-signs-new-offtake-for-queensland-bauxite-mine-189129.html
<![CDATA[News - Metro Mining commissions critical infrastructure at Bauxite Hills Mine ]]> https://www.proactiveinvestors.com.au/companies/news/187939/metro-mining-commissions-critical-infrastructure-at-bauxite-hills-mine-187939.html Metro Mining Ltd (ASX:MMI) is continuing to make progress at its Bauxite Hills Mine in Cape York Peninsula, where all major marine infrastructure has reached practical completion.

These include the barge loading facility (BLF), marine offloading facility, cyclone moorings, navigational aids and tidal gauge.

Simon Finnis, managing director, said: “Our team and partners really need to be congratulated on a fantastic effort to get the major items of infrastructure complete, and commissioned in this timeframe.

“A special thanks must go to Transhipment Services Australia, who were the project managers for the BLF and marine infrastructure for a job well done.

“We are becoming increasingly excited about next year, and are confident we will be in production, as we have promised, early in Q2, 2018.”

Barge loading facility completed in 5 months

The BLF was recently wet commissioned with first product being loaded onto the conveyor system and into a barge.

The commissioning was a success with the BLF construction completed in only 5 months.

Project construction remains on budget and on track

The civils work package is progressing well and haul road construction is advancing.

The haul road to the BH6 deposit, where mining will likely commence, is complete. Work continues on the haul road to the BH1 deposit.

In the lead up to production, Metro will also commission the product sampling station and on-belt analyser which are used to support mining operations, specifically quality control.

The camp, fuel farm and other infrastructure remains on track for completion by the end of 2017. 

Independent bauxite production in Cape York

Metro Mining is progressing towards becoming an independent bauxite producer in Cape York, a large remote peninsula located in Far North Queensland.

The company has already signed a binding off-take agreement with the Xinfa Group, one of China's largest integrated aluminium companies.

The agreement has a four-year term and provides for contract tonnage of 1 million tonnes of bauxite in 2018 and 2 million tonnes for each of the following three years.

SAB Mining is undertaking civil works during the mine construction phase, and have been awarded the bauxite mining and haulage contracts for the operational phase.

Metro Mining’s shares were last trading circa 6% higher intra-day, at $0.25.

READ: Metro Mining's construction of the Bauxite Hills Mine is on time and within budget ]]>
Wed, 29 Nov 2017 12:40:00 +1100 https://www.proactiveinvestors.com.au/companies/news/187939/metro-mining-commissions-critical-infrastructure-at-bauxite-hills-mine-187939.html
<![CDATA[News - Metro Mining's construction of the Bauxite Hills Mine is on time and within budget ]]> https://www.proactiveinvestors.com.au/companies/news/185601/metro-mining-s-construction-of-the-bauxite-hills-mine-is-on-time-and-within-budget-185601.html Metro Mining Ltd (ASX:MMI) continues to makes strides towards becoming a leading independent Cape York bauxite producer.

Around 75 people are currently working on the Bauxite Hills Mine with indigenous employees holding 41% of the positions in all facets of the construction program.

Metro has already signed a binding off-take agreement with the Xinfa Group, one of China's largest integrated aluminium companies.

The agreement has a four-year term and provides for contract tonnage of 1 million tonnes of bauxite in 2018 and 2 million tonnes for each of the following three years.

Construction progress details

Installation of marine infrastructure is ahead of schedule with marine pile driving complete, and includes piles for the cyclone moorings and all structures including the barge loading facility.

The marine offloading facility is complete and being utilised for unloading of freight and personnel.

SAB Mining (SAB) is undertaking civil works during the mine construction phase, and have been awarded the bauxite mining and haulage contract for the operational phase.

The earthmoving civils for the barge loading facility are complete, as are all sediment dams and the traffic round about at the port.

As per the schedule SAB have now moved onto construction of the haul roads, commencing at the port area and working towards the mining areas.

The team that will erect and commission the conveyor systems for the barge loading facility have been mobilised to site, with work to commence next week.

The stacker has been delivered to Brisbane and will be transported to site next week. The on-belt analyser is also in transit to site.

A master builder has been appointed to manage the installation of the accommodation units in their final location as per the camp design.

Eleven further accommodation units have arrived on site and will be progressively installed.

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Mon, 16 Oct 2017 11:06:00 +1100 https://www.proactiveinvestors.com.au/companies/news/185601/metro-mining-s-construction-of-the-bauxite-hills-mine-is-on-time-and-within-budget-185601.html
<![CDATA[News - Metro Mining remains on track to becoming an independent bauxite producer ]]> https://www.proactiveinvestors.com.au/companies/news/183944/metro-mining-remains-on-track-to-becoming-an-independent-bauxite-producer-183944.html Metro Mining Ltd (ASX:MMI) is currently transitioning to becoming a leading independent Cape York bauxite producer.

Metro has now awarded the mining contract for the operation of the mine, finalising all major contracts.

Mine construction commenced in July and mining operations are on schedule to commence in April 2018.

Mining contract

The mining contract has been awarded to SAB Mining, a private Queensland mining services company who also provides services for the Sonoma coal mine in the Bowen Basin.

SAB is currently on-site undertaking civils works for mine construction from a safety, indigenous engagement and productivity perspective.

Simon Finnis, managing director, commented:

"Metro is delighted to have engaged SAB Mining to carry out the mining services for the Bauxite Hills mine.

"SAB has been integral in assisting Metro advance the project to where it is today and their formal appointment for mining operations represents another key milestone for the project.

"Metro and SAB will work together to prepare for mining activities with the view of mobilising the mining fleet to site in March 2018, ahead of forecast production starting in April 2018."

SAB’s scope of works

SAB's contract encompasses all land based mining activities.

This includes:

- Clearing and pre-strip;
- Mining bauxite in accordance with mine plan;
- Operation of haul trucks;
- Loading of barges via barge loading facility;
- Rehabilitation of mined areas; and
- Maintenance of plant and equipment.

The financial details of the contract are in line with the estimates provided for Metro’s Bankable Feasibility Study for the project.

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Thu, 14 Sep 2017 12:03:00 +1000 https://www.proactiveinvestors.com.au/companies/news/183944/metro-mining-remains-on-track-to-becoming-an-independent-bauxite-producer-183944.html
<![CDATA[News - Metro Mining remains on track for construction of Bauxite Hills Mine ]]> https://www.proactiveinvestors.com.au/companies/news/183208/metro-mining-remains-on-track-for-construction-of-bauxite-hills-mine-183208.html Metro Mining Ltd (ASX:MMI) continues on the path to becoming a bauxite producer, with construction of the Bauxite Hills Mine currently on schedule and is expected to be completed at the end of 2017.

Additional civil works including upgrading the existing roads and sediment dam works are also in progress.

READ NOW: Metro Mining granted mining leases for Bauxite Hills Mine

Metro’s Site Environmental Officer has commenced duties on site and will oversee construction activities, commence operations readiness preparation, and has taken over monitoring activities from contractors.

Metro has entered into an agreement with Falck for the provision of a paramedic and medical supplies at Bauxite Hills. A paramedic is on site with essential medical equipment and an ambulance.

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Thu, 31 Aug 2017 13:36:00 +1000 https://www.proactiveinvestors.com.au/companies/news/183208/metro-mining-remains-on-track-for-construction-of-bauxite-hills-mine-183208.html
<![CDATA[News - Metro Mining reveals Hon Dr Anthony Lynham has granted mining leases for Bauxite Hills Mine ]]> https://www.proactiveinvestors.com.au/companies/news/183053/metro-mining-reveals-hon-dr-anthony-lynham-has-granted-mining-leases-for-bauxite-hills-mine-183053.html Metro Mining Ltd (ASX:MMI) is positioned to benefit from the expected transformational growth in China's seaborne bauxite demand driven by fundamentals.

Metro has now outlined that the Minister for State Development, Natural Resources and Mines Hon Dr Anthony Lynham, has signed the three mining leases for the company's Bauxite Hills Mine, which hosts 144.8 tonnes of bauxite.

Dr Lynham said the granted leases were critical for the $35.8 million bauxite mine project to proceed into planned production.

"Granting these leases allows Metro Mining to consolidate and unlock the potential of the significant bauxite reserve that exists on the western Cape York Peninsula, and generate hundreds of jobs for the region.

"The three leases contain a large portion of bauxite Reserve that is estimated at 92.2 million tonnes.

“Up to 200 people are expected to be employed with a 30 per cent indigenous workforce target incorporating traineeships and apprenticeships and training requirements, plus provision for local and regional procurement."

Analysis

The granting of these leases gives Metro the confidence to progress the mine’s construction and begin production.

The first shipments of bauxite are planned for early 2018.

The project is a simple direct shipping ore operation, with compelling economics including an average annual life-of-mine EBITDA of around $145 million.

Circa 60% of production for the first four years is subject to firm off-take agreements or letters of intent.

Metro is therefore set to be a leading independent Cape York bauxite producer.

READ MORE: Metro's substantial shareholder BlackRock Group increases stake ]]>
Tue, 29 Aug 2017 10:40:00 +1000 https://www.proactiveinvestors.com.au/companies/news/183053/metro-mining-reveals-hon-dr-anthony-lynham-has-granted-mining-leases-for-bauxite-hills-mine-183053.html