Australia’s Metro Mining Ltd. Announced yesterday a new offtake agreement with Chinese firm Xiamen Xiangsen Aluminium Limited (Xiangsen Aluminium) for 790 thousand wet metric tons of bauxite in 2021.
Metro said in a press release that the agreement was the completion of a prior letter of intent between the two parties for one million wet metric tons of bauxite ore. The cargoes to be delivered under this agreement will be spread over the next four months for a fixed price that was not revealed.
In order to meet demand for the new agreement, Bauxite Hills Mine will return to full production in the fourth quarter. Additionally, shipments will begin being carried out by Capesize vessels once the new floating crane at the harbor is put into service.
Metro says that the two parties are currently in negotiations to expand a previous memorandum of intent that contemplated a sale of one million dry metric tons of bauxite over the next three years.
Metro Mining Managing Director and CEO Simon Wensley said that the agreement capitalizes on his firm’s specialized capabilities.
“Metro is delighted to have fully converted the LOI for 2021 into a binding off-take. Successfully working with Xiangsen Aluminium, Shanxi Senze and other refineries to convert to Metro product is a key part of our strategy to expand the market. It allows us to leverage our unique logistics position as the only supplier using Capesize vessels from Australia and deliver secure, quality, base-load raw materials to our customers. We look forward to finalising an expanded long-term LOI in the near future and then converting that to a binding contract to establish a long-term mutually rewarding partnership helping to underpin our Stage 2 expansion.”
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.