Bauxite Offtake Agreement

Also note the bar chart that shows China`s expected bauxite consumption, particularly its increasing dependence on imported bauxite due to a sharp decline in domestic supply. China has seen its bauxite production decline due to deteriorating reserve quality and a government initiative to reduce pollution. Just as Australian miners of other commodities benefit from the depreciation of the Australian dollar against the US dollar, the price of Bauxite in Australian dollars is extremely strong for local miners. The BAUXITE sPIC made available under the agreement is used to produce 2.5 million tonnes of aluminum smelting capacity and 2.6 million tonnes of tonal refining capacity per year. Mr. Argonaut recently expressed optimism about the offshore bauxite market, with analyst Matthew Keane stating that “alumina prices in northern China have recently reached multi-month highs, with environmental shutdowns of domestic bauxite extraction in Shanxi province leading to a critical shortage of raw materials. Five months after the start of mining, Metro Mining shipped one million tonnes of bauxite from its Bauxite Hills mine north of Weipa in Westkap York. Under the contract, bauxite is delivered to the refinery in Shanxi Province, which operates below capacity due to reduced availability of bauxite. Some commissioning problems also occurred in the takons and dungeon loading facility. These most often refer to the handling of materials and have been aggravated by moisture as normal bauxite.

These problems were resolved by minor facility changes. As noted below, the average bauxite price for China in the June quarter was $57.26 per wet ton (WMT). Australia`s Metallbergmann Metro Mining Limited has drawn the attention of its investors to the implementation of a non-binding Memorandum of Understanding (MoU) regarding the supply of Bauxiterz to the state-owned state-owned state-owned Power Investment Corporation (SPIC) Aluminium and Electric Power Investment Co. Ltd. of the People`s Republic of China. Although Australia is a major producer of bauxite, there are few mines. For this reason, the product receives very little commentary compared to precious metals and precious metals. Simon Finnis, Metro`s Chief Executive Officer, said: “We are delighted to have entered into a new acquisition agreement with a large Chinese state-owned aluminum group that we believe is capable of being another long-term customer partner.

The following shows the recent trend in the wider price of bauxite since mid-2018. Metro Mining (ASX:MMI) is the only gaming bauxite producer in Australia with links to China.