Name and Location
Bauxite Hills direct shipping ore (DSO) project, Australia.

Client
Metro Mining.

Project Description
A definitive feasibility study (DFS) completed on the Bauxite Hills project, in Cape York, Queensland, has shown robust economics, in line with the prefeasibility study.

The project comprises two bauxite plateaus (BH 1 and BH 6) next to the Skardon river. The forecast quality and nature of the bauxite resources in BH1 and BH6 are suitable for export as DSO.

The DFS considers a more than 25-year mining operation producing 1.95-million tonnes a year of DSO-quality bauxite at steady state. This production is based on mining all the DSO resources at Bauxite Hills considered feasible as part of the DFS findings. There are a total of 53.6-million tonnes of resources across the BH1 and BH6 deposits.

Initially, topsoil and vegetation will be removed by clear-and-grub activities. Dozers will then be used to remove overburden, which will be stockpiled for rehabilitation purposes. The average overburden thickness across the BH1 and BH6 deposits is only 0.5 m, resulting in a very low strip ratio of 1:9.

The removal of the overburden exposes the bauxite DSO ore, which is free-dig in nature, which means no drill or blast is required. Front-end loaders will be used to mine the bauxite and load directly onto mobile in-pit screens.

Screening of the bauxite ore will be to a maximum size of 100 mm, resulting in a product suitable for export. Any oversize material will be collected, stockpiled and campaign-crushed when appropriate.

Screened bauxite ore will be loaded into triple road trains with a 150 t payload for haulage to stockpiles at the barge loading facility (BLF). The average haul distance from BH6 to the BLF is 7.1 km and 16.4 km from BH1 to the BLF. Bauxite ore will be hauled to product stockpiles adjacent to the BLF.

The BLF has been designed and will be constructed to achieve a minimum operating capacity of 1 250 t/h. It will be operated on a 24-hour basis during the dry season operating window, which is typically March to December, and is adjacent to the product stockpile area. Two front-end loaders will load bauxite ore from the stockpiles onto the BLF. Bauxite ore will then be loaded onto barges.

The operation will use a transshipment fleet consisting of two towing and support tugs, and four estimated 3 500-t-capacity dumb barges.

Net Present Value/Internal Rate of Return
The DFS estimates a post-tax net present value of A$235-million and and internal rate of return of 148%, with a payback of 1.1 years.

Value
The DFS estimates capital expenditure at A$33.9-million, including contingency.

Duration
Mining is expected to start in September 2017.

Latest Developments
In undertaking the DFS for the operation, Metro identified that Bauxite Hills had excellent potential and a resource base that could support a larger yearly production rate. The potential benefits of a larger operation identified included greater use of deployed capital, realisation of economies of scale, a stronger presence in the bauxite market and potential offtake partners.

As part of its environmental-impact study submissions, Metro will submit the terms of reference for a five-million-tonne-a-year mining operation at Bauxite Hills. On the back of this submission, Metro has started work on a scoping study for a four- to five-million-tonne-a-year operation.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Metro Mining, tel +61 7 3009 8000, fax +61 7 3221 4811 or email info@metromining.com.au.