Metro Mining Limited announced last week that the firm chose SAB Mining to conduct operations at its soon-to-be-opened mine at Bauxite Hills.
The award of the mining contract to SAB marks the last award of a major contract for the mine. Included in SAB’s duties under the contract are clearing and pre-stripping the mine area, mining of bauxite at the site, transporting it from the mine to barges for sale, and rehabilitating the site at the end of the mine’s life.
The contract has a term of 2 years with an option for Metro to extend the contract another 2 years. SAB will provide and maintain the necessary equipment and labor on site as well.
According to Metro, SAB is already conducting work on site at the mine to prepare for the mine’s imminent construction phase.
Although no numbers were released, Metro assures its stockholders that its financial terms are within the parameters established by the Bankable Feasibility Study conducted earlier this year.
Simon Finnis, Metro’s managing director, expressed high praise for SAB and optimism for the mine’s progress to opening.
“Metro is delighted to have engaged SAB Mining to carry out the mining services for the Bauxite Hills mine. SAB has been integral in assisting Metro advance the project to where it is today and their formal appointment for mining operations represents another key milestone for the project.
“Metro and SAB will work together to prepare for mining activities with the view of mobilising the mining fleet to site in March 2018, ahead of forecast production starting in April 2018.”
Metro Mining is based in Brisbane, and began life when it was spun off from Cape Alumina Ltd. upon its takeover by MetroCoal Ltd in 2014. The firm has exploration rights in over 500 square miles of western Cape York, which is second to only Rio Tinto Alcan.