Metro Mining (ASX: MMI) has collared a $47.5 million loan from the Northern Australia Infrastructure Facility (NAIF) to fund the majority of a stage two expansion at its Bauxite Hills mine.
The company will use the nine-year loan to fund construction and mobilisation of a floating terminal at Skardon River, which will help boost export capacity.
“We are very pleased to have secured the support of NAIF in providing a long-term loan to provide financing for the stage two expansion,” Metro managing director and chief executive officer Simon Finnis said.
“Bauxite Hills will be a significant contributor to the economy of northern Australia and a large employer from the surrounding communities for many years to come.”
“With the stage two definitive feasibility study complete and financing secured, we are now awaiting completion of the final design of the floating terminal in order to be in a position to present to the board for final approval,” Mr Finnis added.
Metro Mining’s Bauxite Hills mine is a direct shipping ore operation located in Cape York, Queensland.
The mine produced 2.04 million wet metric tonnes of bauxite ore in 2018 and is on track to generate 3.4 million wet metric tonnes this year.
Once the planned stage two expansion has been completed future production from 2021 onwards is estimated at 6 million wet metric tonnes.
The ore is hauled from the mine and loaded onto a floating terminal which is transported down Skardon River and loaded onto a bulk carrier for transport to China.
During the September quarter, Bauxite Hills generated $79.5 million in sales revenue and a $22.3 million in site earnings before interest tax depreciation and amortisation.
The company closed out the quarter with $43.5 million in available cash on hand and receivables.
By mid-morning trade, Metro Mining’s shares had increased 12.5% to $0.135.