Metro Mining Limited announced that the 2022 component of the expanded and extended Strategic Cooperation Agreement with Xiangsen Aluminium announced in late November has been converted to a Binding Offtake Agreement of 1.5 Million Dry Metric Tonnes (approx. 1.7 Million Wet Metric Tonnes) in 2022.
On 25th November, Metro announced an expanded and extended Letter of Intent (LOI) with Xiangsen Aluminium for the supply of approximately 5 Million Wet Metric Tonnes (WMT) of bauxite for delivery between 2022 and 2024.
Metro said the 2022 component of that agreement totalling 1.7 Million WMT has been converted to a Binding Offtake Agreement following Xiangsen Aluminium fulfilling 100% of its agreement for 1.1 Million WMT in 2021.
According to the company’s statement, 1.1 Million WMT is already contracted for 2022 with foundation customer Xinfa and further 0.6 Million WMT is in final negotiation stages.
“With 0.7 Million WMT to be withheld for “spot sales” to place as the market recovers further and in the case of competitor supply uncertainty, Metro anticipates it will reach its 4 Million WMT sales target in 2022,” reads the statement.
“The Bauxite Hills Mine is currently running at full capacity and indications are that, weather permitting, committed sales of 3.3 Million WMT for 2021 will be met with production to cease at the end of December and ship loading to cease shortly thereafter.
Metro Mining Managing Director and CEO Simon Wensley welcomed the confirmation of this significant Binding Offtake Agreement following on from Xiangsen Aluminium’s 2021 commitment.
“The addition of the floating crane to our marine fleet, coupled with the efforts of the commercial and Bauxite Hills production teams, is certainly making a difference and we are confident of meeting our projected target of 4 Million WMT in 2022,” he concluded.
Xiamen Xiangsen Aluminium Deputy Managing Director Mr Zhou Hailong said: “Our partner refineries have found the quality of MMI bauxite helps to improve the quality of alumina produced.
“I appreciate the continued commercial and technical support and cooperation of the Metro team.
“Together, we are targeting more refineries with similar quality issues with their bauxite across China.”