https://www.miningweekly.com

Metro signs offtake MoU

10th August 2015

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

Font size: - +

PERTH (miningweekly.com) – Bauxite developer Metro Mining has signed an offtake memorandum of understanding (MoU) with Chinese aluminium firm Xinfa Group over the Bauxite Hills project, in Queensland’s Cape York peninsula.

The MoU contemplated an offtake of between 1-million and 1.2-million tonnes a year of bauxite, over an initial five-year term.

The offtake represented around half of the planned yearly production at the Bauxite Hills project.

Pricing for the offtake was yet to be determined and would be subject to market conditions and bauxite quality, while yearly shipping schedules would also be agreed on in advance.

Metro CEO Simon Finnis said on Monday that the MoU showed the strong relationship and good faith between Metro and Xinfa.

It was expected that an offtake agreement would be executed within four months.

A February feasibility study estimated that the Bauxite Hills mine would deliver some two-million tonnes a year of direct shipping ore (DSO) product, over a mine life of 21 years. 

The DSO operation was expected to require a capital investment of only A$27.4-million and would deliver an internal rate of return of 88% and a net present value after tax of A$197-million.

Finnis said Metro’s focus would now be on completing a definitive feasibility study for the project, as well as achieving permitting approvals, undertaking predevelopment work and finalising the formal and binding offtake agreements.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

Comments

Latest Multimedia

Magazine round up | 19 April 2024
Magazine round up | 19 April 2024
Updated 7 hours ago

Showroom

ESAB showroom image
ESAB South Africa

ESAB South Arica, the leading supplier of high-end welding and cutting products to the Southern African industrial market is based in...

VISIT SHOWROOM 
GreaseMax
GreaseMax

GreaseMax is a chemically operated automatic lubricator.

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Resources Watch
Resources Watch
17th April 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.264 0.302s - 107pq - 2rq
1:
1: United States
Subscribe Now
2: United States
2: