Name of the Project
Bauxite Hills Stage 2.

Location
Queensland, Australia.

Project Owner/s
Metro Mining.

Project Description
The project has reserves of 109.5-million tonnes and a mine life to 2037.

The project aims to increase production of bauxite from 3.5-million wet metric tonnes a year to six-million wet metric tonnes a year.

Stage 2 involves the construction and mobilisation to Skardon river of a floating terminal that can load six-million wet metric tonnes a year of bauxite; up-scaling the current mining, haulage and transshipments fleets; and the optimisation and upgrading of the existing port and barge-loading facilities.

The preferred floating terminal design comprises a 100 m barge, equipped with two cranes and a materials handling conveyor and stacker system that can load up to 40 000 t/d of bauxite. The terminal will be able to load different-sized ocean-going vessels. This will enable Metro to take advantage of chartering Cape Size vessels to realise significant freight savings while maintaining client flexibility by still being able to load smaller ocean-going vessels.

The project includes the expansion of the accommodation camp, port area modifications and fleet additions, including mobillisation.

Potential Job Creation
The project is expected to create 60 jobs.

Net Present Value/Internal Rate of Return
Project payback is less than 18 months.

Capital Expenditure
The project is estimated at A$51-4-million.

Planned Start/End Date
Commissioning of the floating terminal is expected in the first quarter of 2021.

Latest Developments
The Northern Australian Infrastructure Facility (NAIF) has offered a A$47.5-million loan to Metro Mining for the Stage 2 expansion of its Bauxite Hills mine.

Federal Resources and Northern Australia Minister Matt Canavan has said that the investment will create 60 new jobs in Cape York, with the NAIF investment to fund the new floating terminal on the Skardon River, in north-western Cape York.

“This infrastructure project will enable Metro Mining to load larger vessels, part of its broader plan to expand to six-million metric tonnes per annum by 2021. More than $500-million in public benefit has also been forecast to be generated over the life of the mine to 2037,” Canavan said.

Metro Mining has said that the NAIF funding is a critical part of the company’s funding strategy to execute the expansion of the Bauxite Hills project by 2021.

 “With the Stage 2 definitive feasibility study complete and financing secured, we are now awaiting completion of the final design of the floating terminal in order to be in a position to present to the board for final approval,” MD and CEO Simon Finnis has said.

NAIF’s investment decision and financial assistance to the project is subject to the Minister for Northern Australia’s legislative consideration period and the Queensland government’s consideration.

Key Contracts and Suppliers
MEC Mining (DFS); Rocktree Consulting (engineering, design and supplier quotation for the floating terminal); Braemar (freight-forwarding estimates); CM Group (forward price decks); Wave Engineering (construction and previous feasibility studies); and Ausenco (project management services to oversee the tendering of equipment and construction of the floating terminal).

On Budget and on Time?
Too early to state.

Contact Details for Project Information
Metro Mining, tel +61 7 3009 8000 or email info@metromining.com.au.