Metro Mining Ltd (Metro) entered into an agreement with Bauxite Transhipment Services Pty Ltd (BTS) a partnership between Transhipment Services Australia Pty Ltd and Dadaru SR for the provision of transhipment services relating to the Bauxite Hills Project.

The Project includes an open cut mining operation, haul roads, Barge Loading Facility, tug and barge operation, ship loading transhipment and will produce up to 5 million tonnes per annum (Mtpa) of ore over approximately 12 years. The mine will not be operational during the wet season.

Bauxite from the project is a direct shipping ore product. Bauxite is transported by barge via the Skardon River to the transhipment site, approximately 6 nautical miles (nm) offshore, and loaded into ocean going vessels (OGV’s) and shipped to customers.

OGV’s of between 50,000 to 120,000 tonnes each are loaded at the transhipment anchorage site. Barges are loaded and bauxite transported to OGV’s 24 hours per day with barges having an initial capacity of approximately 3,400 t to meet early production volumes, increasing up to around 7,500 t as the project reaches a maximum production of 5 Mtpa.

Initial transhipment export target is 2 Mtpa, followed by an increase to a 5 Mtpa export target. Increase in export is determined by the market and operational ability to meet higher volumes.