Metro Mining (ASX:MMI) has been advised by the Queensland...

Metro Mining (ASX:MMI) has been advised by the Queensland Department of Environment and Heritage Protections that it would require a full Environmental Impact Statement for the Bauxite Hills project at Cape York, Queensland.

Metro will request an inter-departmental review of DEHP’s decision.

Metro has already commenced development of the Terms of Reference, the first step in the EIS process.   

On 10th August, the company lodged its Site Specific Environment Authority Application for the project with the Queensland Department of Environment and Heritage Protection (DEHP).

While this is expected to delay commencement of mining operations by at least 6 months, the company will maximise its opportunities.

These include:

- Removal of the 2 million tonnes per annum production limit;
- Provision for the ability to increase the scale of operations to improve market significance of the project;
- Realise economies of scale and achieve superior financial returns; and
- Facilitate further community and stakeholder engagement.

 
Other Activity

The company continues to progress other key milestones relating to development of the project:

- Definitive Feasibility Study for a 2Mtpa operation to be completed by early October with very robust economics being indicated;
- Native Title negotiations in the process of being finalised;
- Off-take negotiations with Xinfa Group, one of China’s the largest integrated aluminium companies, advancing and supported by a non-binding Memorandum of Understanding; and
- Ongoing positive engagement with a range of potential financiers.


Bauxite Hills

The Bauxite Hills Project has an Ore Reserve of 48.2 million tonnes with high grade total alumina of 50.2% and reactive silica of 6.3%.

Metro has forecast total annual production of up to 2 million tonnes.

In August, the company signed a non-binding bauxite off-take Memorandum of Understanding with Xinfa.

The agreement contemplates a minimum contract tonnage of 1 million tonnes a year up to a maximum of 1.2 million tonnes a year over the initial five-year term.