Australia’s Metro Mining Ltd. announced this week that it has signed two new binding offtake agreements with the People’s Republic of China’s Xinfa Group.
Per the firm, the first contract is for the delivery of 1 million dry metric tons (DMT) of bauxite ore at a fixed price CIF basis. The contract’s term is April through September of next year.
Upon the conclusion of the first contract, the second contract between Metro Mining and Xinfa Group commences. Metro will deliver 2 million DMT (plus or minus 10 percent) per year to Xinfa Group for the following three years. The parties will agree upon market pricing quarterly in advance on a free on board (FOB) basis, but the contract is contingent upon Metro’s commitment to its Stage 2 expansion.
Altogether the two contracts have Metro supplying Xinfa Group with 7 million DMT of bauxite ore over a three-year period. The two firms’ business relationship has been well established, as Xinfa Group was one of Metro’s initial customers when Bauxite Hills opened in the spring of 2018.
Metro Mining Managing Director and CEO Simon Finnis underscored the importance of the business relationship with Xinfa Group in a related press release.
“Xinfa was Metro’s foundation customer so these latest Agreements are testimony to the extremely strong personal and business partnership that exists between Xinfa and Metro. It is a relationship we value highly and will always endeavor to support and grow. Importantly, these contracts demonstrate Xinfa’s continued support towards Metro and its strategy around the 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.