Name of the Project
Bauxite Hills mine project.

Location
The Bauxite Hills Mine is located about 95km north of Weipa, on western Cape York, in North Queensland, Australia.

Client
Metro Mining.

In December 2016, Metro completed the acquisition of Gulf Alumina. This added to Metro’s reserve and resource base, recently announcing updates to 92.2-million tonnes and 144.8-million tonnes respectively. The acquisition also consolidated tenement ownership in the region, bringing Metro’s total tenement holding to more than 2 500 m².

Project Description
A bankable feasibility study (BFS) on the Bauxite Hills mine has confirmed strong financial returns from the project and demonstrated the benefits of Metro Mining acquiring Gulf Alumina in February.

The mine plan is based on the integrated Metro/Gulf reserves of 92.2-million tonnes, resulting in an estimated 17-year mine life.

The BFS envisages a simple mining operation where free-dig bauxite is mined by front-end loaders and hauled by truck to a port infrastructure area, a haul distance of between 6 km and 22 km.

At the port, bauxite is expected to be screened to a maximum product size of 100 mm and then fed into a barge loading facility (BLF), which will load awaiting barges.

Tugs will tow the barges down the Skardon river to an anchorage point beyond the river mouth, where awaiting freight vessels will be loaded with bauxite.

There is potential to extend the mine through the conversion of the existing Bauxite Hills resources to reserves, and possible exploration success in regional tenement holdings of 2 500 km².

While the BFS has been completed for steady-state production of six-million tonnes a year, environmental approvals will allow production of up to ten-million tonnes a year.

Jobs to Be Created
When fully operational, Bauxite Hills is expected to employ up to 200 people, with a 30% indigenous workforce target and about 80 people on site at any one time.

Net Present Value/Internal Rate of Return
The project has an after-tax net present value, at a 10% discount rate, of A$601-million and an internal rate of return of 81%.

Value
The initial capital cost of the project has been estimated at A$35.8-million, including 10% contingency, with a payback of 1.7 years.

Duration
Mining operations are expected to start in April 2018.

Latest Developments
Final environmental approvals are expected by mid-2017, with construction planned to start shortly thereafter, subject to finance being in place. Metro has started its financing activities to ensure sufficient funding through to receipt of first revenue, expected during the second quarter of 2018. Discussions have started with potential debt providers and current expectations are that financing will be sourced through a combination of debt and equity.

All construction is expected to be completed during the dry season of 2017.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Metro Mining project manager Nicholas Villa, tel+61 7 3009 8008 or email nvilla@metromining.com.au.