Source: Metro Mining MMI
Market Herald logo

Subscribe

Be the first with the news that moves the market
  • Metro Mining’s (MMI) Board approves the final investment decision to expand capacity at the Bauxite Hills Mine in Far North Queensland
  • Metro is expecting the expansion to cost around $28.3 million which includes contingency
  • The economics of the definitive feasibility study (DFS) have been run at a production and sales rate of six million WMT per annum over a 15-year mine life
  • Metro aims to execute the expansion by the Q4 2023, subject to financing
  • On market close, Metro Mining was up 12.5 per cent to trade at 1.8 cents per share

Metro Mining’s (MMI) Board has approved the final investment decision (FID) to expand capacity at the Bauxite Hills Mine in Far North Queensland.

The company is planning to expand the mine from four to seven million wet metric tonnes (WMT) per annum.

The approval follows an additional binding offtake with Xinfa Aluminium Group for 2023 and 2024.

Further approvals are not needed as Metro already has been approved to mine up to 10 million WMT per annum.

Metro is expecting the expansion to cost around $28.3 million which includes contingency.

The economics of the definitive feasibility study (DFS) have been run at a production and sales rate of six million WMT per annum over a 15-year mine life, delivering strong returns with an NPV of $372 million, internal rate of return at 78 per cent, payback in two years and average site earnings before interest, taxes, depreciation, and amortisation margin of $83 million.

“The completion of the expansion DFS confirms the Bauxite Hills Mine as a highly profitable, low-cost, long life producer of good quality bauxite,” CEO and Managing Director Simon Wensley said.

“This brownfield expansion is low risk and low capital expenditure, with 100 per cent binding offtake now confirmed for 2023 and 2024 with our established customer Xinfa, and no further approvals required.”

Metro aims to execute the expansion by Q4 2023, subject to financing.

On market close, Metro Mining was up 12.5 per cent to trade at 1.8 cents per share.

MMI by the numbers
More From The Market Herald

" Ausgold (ASX:AUC) hits further high-grade gold across Katanning project, WA

Ausgold (ASX:AUC) hits further high-grade gold intercepts at its Katanning gold project in Western Australia.
AusQuest (ASX:AQD) - Managing Director, Graeme Drew

" AusQuest (ASX:AQD) begins RC drilling at Morrisey

AusQuest (ASX:AQD) has begun reverse circulation (RC) drilling at the Morrisey Nickel-Copper-Platinum Group Element (PGE) Project…
PEXA (ASX:PXA) - Chairman, Mark Joiner

" PEXA (ASX:PXA) to begin digital remortgaging this year

PEXA Group (ASX:PXA)¬†has confirmed its first wave of lenders will begin digital remortgaging in the UK…
HITIQ (ASX:HIQ) - CEO, Mike Vegar

" HITIQ (ASX:HIQ) secures third Australian innovation patent

HITIQ (ASX:HIQ) has secured a third Australian innovation patent related to its virtual reality (VR) concussion…