Australian’s Metro Mining plans to advance its wet seasons shutdown at Bauxite Hills amid low sales and may extend the closure until April 2021, when deliveries to Xinfa would recommence, according to the company’s quarterly report. Post-COVID-19, market conditions have deteriorated and adversely impacted the aluminium supply chain. Although alumina and bauxite prices are improving, they continue to remain low.
Metro Mining shared that it has not sold bauxite for 2020 outside the Xinfa contract. The company continues to negotiate with refineries and if further sales for the calendar year 2020 are not concluded in Septemeber, Bauxite Hills operations will be shut earlier for the wet season. The period of closure could extend from mid- September through April 2021 when deliveries as per Xinfa contract would resume. However, Metro Mining stated the mine could reopen this year, in case of new sales.
Metro Mining’s strong operational performance in early 2020 delivered robust cashflows improving mining company’s financial position.
Metro Mining produced and shipped 1,419,000wmt and 1,251,000wmt of bauxite in the June quarter, which exceeded the upper level of the company’s guidance by 14pc.