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.