Metro mine a goer with $ 40m funding

BRISBANE-BASED Metro Mining has secured $ 40 million of debt financing to fund the development of its Bauxite Hill project north of Weipa.

Metro said yesterday that construction of the mine was scheduled to start next month followed by the first shipment of bauxite ore in April.

Surging Chinese demand for aluminium is set to create hundreds of new mining jobs in the Weipa area, home to one of the world’s richest deposits of bauxite.

Metro Mining has joined Rio Tinto and smaller companies such as Metallica Minerals in tapping the region’s huge deposits of bauxite, a key ingredient in the production of aluminium.

Metro Mining managing director Simon Finnis said Bauxite Hill, one of the largest independent projects within the Weipa bauxite region, had received State Government environmental approval, with final Federal Government approval expected soon.

“Mine development is underway and on schedule to begin construction in the third quarter of this year,” Mr Finnis said. Bauxite Hills has an estimated 92.2 million tonne ore reserve.

The company has a supply agreement with China’s Xinfa Group, which owns and operates power stations, alumina refineries and an aluminium smelter in China’s Shandong province. It also has secured a preliminary deal with Lubei Chemicals — China’s fifth largest bauxite importer. Commodity research analysts CM Group says bauxite imports to China are forecast to almost triple to 136 million tonnes over the next decade.

Australia shipped about 21.3 million tonnes of bauxite to China last year. China produced 40 million tonnes of aluminium each year and that was expected to grow to 50 million tonnes over the next five years.

Once fully operational, the Bauxite Hills Mine is expected employ up to 200 people with a 30 per cent indigenous workforce target.

Rio Tinto this year awarded more than $ 900 million in construction contracts for its Amrun mine, 40km south of Weipa.

The $ 2.6 billion project is expected to employ 1400 people when it kicks off in 2019, replacing the company’s depleting East Weipa mine.

Metallica Minerals expects to start production of its Urquhart project, southwest of Weipa, in the next three months.