Name and Location
Bauxite Hills project, Queensland, Australia.

Client
Metro Mining.

Project Description
A prefeasibility study (PFS) completed on the Bauxite Hills project has confirmed the project’s attractive economics.

Bauxite Hills comprises two bauxite plateaus (BH 1 and BH 6) situated next to the Skardon river.

The forecast quality and nature of the bauxite is suitable for export as direct shipping ore (DSO).

The PFS indicates that a DSO operation allows for the development of a low-capital and low-operating cost mine, by avoiding significant costs traditionally associated with the production of a beneficiated bauxite product, including reduced infrastructure costs and significantly reduced water and energy. In addition, no tailings dams are required.

Mine operations proposed are simple and will use trucks and front-end loaders. No blasting is required. The bauxite is planned to be hauled to the barge load-out facility at the Skardon river, then transported by barge about 10 km offshore where it will be transshipped into bulk carriers for export to overseas customers.

Net Present Value/Internal Rate of Return
The project has an after-tax net present value, at a 15% discount of A$197-million and an internal rate of return of 88%, with capital payback of 1.1 years from first production.

Value
The project’s capital expenditure is estimated at A$27.4-million.

Duration
The project schedule is based on the completion of the approval process and the granting of a mining lease by March 2016, with construction and mine development scheduled to start during the second quarter of 2016 and first production by the fourth quarter of the same year.

Latest Developments
Metro Mining has announced a near fivefold increase in the ore reserves at its Bauxite Hills project. The ore reserve has increased by 398% to 48.2-million tonnes, of which 41.8-million tonnes have been classified as proven and 6.4-million tonnes as probable reserves.

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.