Bauxite producer Metro Mining has finalised multi-cargo offtake agreements, ensuring a steady flow of bauxite shipments from its Bauxite Hills Mine in Queensland, Australia, for 2025 and 2026.
These agreements, along with existing contracts, escalate contracted offtake to 6.9 million wet metric tonnes for 2025 and 6.1 million for 2026.
The company’s contract portfolio expansion includes an extension with its most long-standing client, Xinfa Aluminium Group, China’s integrated aluminium company.
Other new contracts have been established with China Aluminium International Trading Group, the trading division of the alumina and aluminium producer Aluminium Corporation of China, and with Shandong Lubei Enterprise Group General Company, a chemical manufacturing group from Shandong Province.
Metro Mining CEO and MD Simon Wensley said: “This high-quality portfolio of customers is a testament to Metro bauxite’s competitiveness and its technical service, commercial flexibility, and efficient and large-scale logistics to establish a robust and low-risk market positioning.”
While the detailed terms of the contract, including tenor, volume and pricing, remain confidential, it is disclosed that the offtake agreements are based on a shorter-term pricing quotation period, accounting for 80% in 2025 and 93% in 2026.
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By GlobalData
To mitigate freight rate risk, Metro Mining has also entered contracts of affreightment that include fixed charter and bunker rates with first-class owners. These contracts cover more than 85% of the agreed delivered volume for each year.
Bauxite Hills Mine is located on the Weipa plateau, 95km north of Weipa, near Skardon River.
In April this year, Metro Mining’s offshore floating terminal, Ikamba, completed mobilisation to Skardon River and began loading bauxite onto a capesize vessel.
This terminal is key to Metro’s expansion, increasing capacity to seven million wet metric tonnes, enhancing both throughput and operational resilience.
