PERTH (miningweekly.com) – ASX-listed Metro Mining has shipped its first 62 000 t of bauxite from the Bauxite Hills mine, in Queensland.

The maiden shipment is due for delivery to Chinese integrated aluminium company Xinfa Group, which has a four-year binding agreement with Metro, for the offtake of one-million tonnes of bauxite during the first year, followed by two-million tonnes a year for the following three years.

Mining at Bauxite Hills started in April this year, and while Metro reported some commissioning issues, owing to a later-than-normal wet season and hydraulic system operability issues with the truck and haulage fleet, the issues have now been resolved.

Metro told shareholders on Monday that over the past few days, the project loaded some 7 000 t/d of bauxite from the mine to ship, with the company expecting to achieve its 2018 target average of 10 000 t/d by the end of June.

Queensland Mines Minister Dr Anthony Lynham said the Bauxite Hills mine success story was a reflection of Queensland’s strong economic conditions and expertise. 

“From the turning of the first sod, to the first shipment in only nine months, the Bauxite Hills mine is a prime example of the demand for Queensland’s minerals,” he said.

“As well as securing a four-year export deal with one of China’s largest aluminium companies, Xinfa, the mine will provide up to 200 jobs.”

Metro MD Simon Finnis said the start of mining operations at Bauxite Hills was “a great outcome for Metro itself, and all our stakeholders and partners”.

“We are delighted to be exporting beautiful north Queensland bauxite to leading alumina refineries in China,” he said.

The first 62 000 t shipment has been purchased by the Xinfa Group. Xinfa has significant refining and smelting operations in Shandong, Shanxi, Guangxi and Xinjiang provinces, and is a major company in the aluminium business.

“The Bauxite Hills mine provides ongoing opportunities for locals and the Far North Queensland region as a whole. We are committed to furthering Indigenous opportunities through employment and training, and in the longer term fostering initiatives for business creation.

“We are also committed to investing in the region wherever possible through goods and services and the State benefits through royalties,” Finnis said.