Name of the Project
Bauxite Hills mine project.

Location
The Bauxite Hills mine is located about 95 km 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) has confirmed strong financial returns from the project and demonstrated the benefits of Metro Mining acquiring Gulf Alumina in February this year.

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, with 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 conversion of the existing Bauxite Hills resources to reserves, as well as from 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 for production of up to ten-million tonnes a year. Metro will continue to evaluate the benefits of increasing production further as it moves through the predevelopment and operational phases. 

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 a 10% contingency, with a payback of 1.7 years.

Duration
Mining operations are expected to start in April 2018.

Latest Developments
Metro Mining has reported that pile installation for marine infrastructure has been completed; the marine offloading facility is complete and that the civils for the barge-loading facility has been completed.

Meanwhile, haul road construction has begun and 11 new camp buildings have arrived and are being installed.

Key Contracts and Suppliers
SAB Mining (civil works), Master Builder (installation of the accommodation units).

On Budget and on Time?
The overall construction programme at the Bauxite Hills mine is advancing according to the schedule and is on budget.

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