Name and Location
Bauxite Hills project, Queensland, Australia.

Client
Metro Mining.

Project Description
The project has a 48.2-million-tonnes ore reserve, of which 41.8 million tonnes is proved.

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.

The project aims to produce two-million tonnes over a 27-year mine life.

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 might face a complicated environmental approvals process at its Bauxite Hills mine, in Queensland.

The Queensland Department of Environment and Heritage Protection (DEHP) has verbally advised the company that the DEHP will require a full environmental-impact statement (EIS) for the project, despite having received a detailed, site-specific environment authority application.

The company has questioned the validity of the DEHP’s request for the heightened level of environmental scrutiny, pointing out that the Bauxite Hills project does not trigger any legislated specific criteria that require an EIS.

Metro has said that it has not previously been advised of the need for an EIS, despite being in negotiations with the DEHP since 2014.

“While we have not received formal advice from the department, if that is, in fact, its final position, Metro will seek a formal interdepartmental review through the established process,” the company has said in a statement.

Metro has said that the company is reviewing its alternative timing strategy for the project.

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.