Australia-based Metro Mining Ltd. has just ratified a new agreement with China’s Xiamen Xiangsen Aluminium Limited (Xiangsen Aluminium) for the supply of five million metric tons between 2022 and 2024. This agreement also provides for the annual shipment of about 1.7 million tons of bauxite.
The shipments will all be in large bulk vessels optimizing costs for both parties. This expanded agreement is the result of successful trials at 4 refineries in Shanxi, Guangxi and Guizhou provinces in China, driven by Australian and Chinese technical and commercial teams.
This agreement further leverages Metro’s low-risk jurisdiction environment, consistent and high-quality resources, its agile and competitive approach to contracting, and its technical service capabilities. Maximum use will also be made of the new floating crane for deliveries to major Chinese ports on large bulk carriers, which will benefit the cost structures of both parties.
Metro Mining managing director Simon Wensley stresses that the deal gives his firm great hope for further expansion. “Metro is delighted to see that the relationship with our partner Xiangsen Aluminium is going from strength to strength after a good first year of testing. It is based on mutual trust and the delivery of clear and straightforward commitments. As the Chinese bauxite market evolves and the risk of alternative supplies becomes better understood, we are committed to supporting customers who recognise the excellent value and risk package that Metro can offer. This gives us confidence to begin our second phase of expansion.”
