THE BOURSE WHISPERER: Metro Mining (ASX: MMI) reassured the market bauxite from the company’s Bauxite Hills Mine was still being delivered to its Chinese customer.
Metro Mining cited reports in the Chinese Press regarding temporary closure of Alumina refinery capacity in Shanxi province following environmental audits by Chinese authorities, reporting that Xinfa Group’s Shanxi Jiaokou Refinery being one plant impacted by the closure.
Metro explained that Shanxi is an inland province and Xinfa source 100 per cent of their bauxite to feed this refinery from domestic sources within Shanxi.
The Xinfa aluminium business owns and operates six alumina refineries in China, of which Jiaokou is one and the other five refineries remain in operation with no restrictions.
Metro has in place a long-term offtake contract with Xinfa and has been supplying material from its Bauxite Hills Mine since the commencement of operations in April 2018.
Metro’s bauxite is supplied to Xinfa’s Refinery located in the coastal province of Shandong, which is completely unaffected by any of the current environmental issues.
Metro is continuing to supply bauxite to Xinfa as planned under this offtake agreement.
“Metro and Xinfa have formed a strong and mutually beneficial relationship over a number of years,” Metro Mining CEO Simon Finnis said in the company’s announcement to the Australian Securities Exchange.
“We meet regularly to discuss ways to build on this sound footing, and we look forward to this partnership continuing to flourish as Bauxite Hills continues to deliver on its commitment to Xinfa.”