Metro Triumphs with Award and Finalizes Strategic Bauxite Shipments

Metro Mining (ASX) has finalized a series of multi-cargo offtake agreements for bauxite shipments from its Bauxite Hills Mine in Queensland, covering the years 2025 and 2026. The agreements represent a major step for the company as it secures long-term customers and solidifies its market position in the global bauxite sector. The announcement follows Metro’s recognition with the prestigious Environment Award at the 2024 Association of Mining and Exploration Companies (AMEC) Awards in Perth, where the company was honoured for its outstanding work on the Legacy Kaolin Mine Rehabilitation project.

CEO Simon Wensley highlighted that the award was a testament to the technical and engineering excellence demonstrated in rehabilitating a large tailings area, which had been left as a legacy from a previous mining operation. This rehabilitation project was particularly challenging as it involved restoring land adjacent to a creek, but Metro’s environmental and operations team successfully managed the project safely and efficiently while the mine was in a period of transition. Wensley expressed his pride in the team’s work, which was executed while Metro focused on operational turnaround at its Bauxite Hills Mine.

In addition to the environmental recognition, Metro has strengthened its bauxite sales strategy through strategic contract extensions and new agreements with key international customers. The company has renewed its long-standing offtake deal with Xinfa Aluminium Group, one of China’s leading integrated aluminium producers, which has been Metro’s largest and longest-term customer. Furthermore, Metro has secured new agreements with two other prominent players in the industry: China Aluminium International Trading Group (the trading arm of Aluminium Corporation of China) and Shandong Lubei Enterprise Group General Company, a diversified chemical manufacturing group based in Shandong Province.

CEO Simon Wensley emphasized that these new contracts are evidence of the competitive advantages Metro’s bauxite offers in the market. He pointed out that Metro’s technical service, commercial flexibility, and large-scale logistics capabilities are integral to its ability to maintain a robust and low-risk position within the global bauxite market. The company’s flexibility in pricing and delivery terms has also helped secure these valuable offtake agreements. While the specific details of the contracts, including volume and pricing, remain confidential, Metro confirmed that the offtake volumes for 2025 and 2026 are largely secured, with 80% of the 2025 and 93% of the 2026 shipments already contracted.

The agreements include both Free on Board (FOB) and Delivered Cost, Insurance, and Freight (CIF) pricing terms, with some contracts also containing provisions for spot cargo. To mitigate freight risk, Metro has locked in fixed charter and bunker rates for more than 85% of the CIF volumes, securing the logistics for the bauxite shipments. This provides additional certainty in the supply chain and enhances the company’s ability to meet the needs of its customers.

Metro Mining’s Bauxite Hills Mine, located on the Weipa bauxite plateau 95 kilometres north of Weipa in Far North Queensland, remains a vital asset for the company. Metro continues to expand its presence as an independent bauxite producer and explorer, while also emphasizing sustainable practices and environmental responsibility. The company’s efforts to integrate technical innovation and robust market relationships are key to its ongoing success and future growth in the global bauxite sector.