Metro Mining gained over 6 per cent today after inking a non-binding offtake deal with a Chinese state-owned enterprise, locking in all planned bauxite output from its Bauxite Hills mine for the next two years.
The Memorandum of Understanding (MoU) is with SPIC Aluminium and Electric Power Investment covers supply of 6.5 million tonnes of bauxite, over four years, from May 2018.
Along with a binding 7Mtpa, 4-year offtake deal with Xina and a non-binding letter of intent with Lubei Chemicals, this now represents all of the planned output from Bauxite Hills in 2018 and 2019.
“Once again this demonstrates the strong appetite for our bauxite in the Chinese refining market, and validates our mining and marketing strategy,” Metro Mining managing director Simon Finnis said.
“Construction at the Bauxite Hills mine is virtually complete, and is on schedule to commence production in April 2018, following the end of the Cape York wet season.”
The parent company of SPIC, State Power Investment Corporation, is a large state-owned enterprise under the administration of the Central Government with total assets of RMB 866.1 billion.
Metro remains in talks with Lubei Chemicals regarding the signing of a binding offtake deal.
Shares in Metro finished at 25c, up over 6 per cent.
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