Metro Mining Limited (ASX: MMI) is pleased to announce that the Board has made its final investment decision (FID) on the expansion route to 7.0 Million Wet Metric Tonnes per annum (MWMT/a) for its Bauxite Hills Mine, located 95kms north of Weipa on Western Cape York, North Queensland.

Bauxite ore is the mineral processed into aluminium and MMI is Australia's only pure play bauxite miner.

The key elements of FID are: 1. A decision on the expanded transhipping solution utilizing a large, existing Offshore Floating Terminal (OFT) 2. Commitment to a more resilient and lower operating cost screening solution. Simon Wensley, CEO and MD of MMI commented: 'It is exciting to now have the expansion pathway clear, fully approved, underpinned by offtake and financed. The established OFT and wobbler technologies are part of our continuing strategy to create more resilience, lower cost and increased upside optionality in our business. Additionally, the JV with Louis Dreyfus adds globally renowned and specialist expertise to our existing contract partner team.'

Transhipping Expansion

MMI has identified a superior option for its transhipping operation. Instead of building a second floating crane barge (FCB), MMI has procured a larger, existing Offshore Floating Terminal (OFT). The OFT will provide substantial upside including earlier mobilization, lower cost risk, enhanced capacity upside, flexibility and greater operating window/weather resilience than an FCB due to its large size

The OFT, currently named ALM Tinka, is almost identical to the transhipping solution identified in MMI's original

feasibility study in 2019 and has the following characteristics: 132m in length, 28m width, non-propelled barge with 2 x 34 tonne safe working load hydraulic unloading cranes and a hopper, conveyor, ship loading system.

One of 2 vessels, delivered in 2012 initially for loading iron ore magnetite fines in Australia, it was then modified to load bauxite. Its sister vessel, Magdragon2, is currently successfully employed at the Sino iron Project in WA.

Has been loading raw bauxite of similar density and handling characteristics to MMI bauxite off the coast of Binding joint venture terms for ownership of the OFT have been concluded with current owner ALM Shipping Management Ltd (ALM Shipping), for MMI to purchase a 50% effective interest in the vessel for US$15M, including mobilization to Australia and a significant dry-docking refurbishment (OFT JV). ALM Shipping is led by Louis Dreyfus Ports and Logistics (LDPL), a global logistics solutions provider and subsidiary of Louis Dreyfus Armateurs SAS. The vessel is expected to arrive in Cape York in Q4 2023 and, following regulatory approval, will then be bareboat chartered by the OFT JV to MMI for operations under a 10 year contract, which includes buy out options for MMI. LDPL will oversee the mobilization and drydocking and MMI will confirm its operational strategy over the coming weeks. Whilst the asset is not new and requires an interim dry-docking, on balance it presents risk reduction in its accelerated arrival timeline, greater cost predictability, proven operating performance, resilience to poor sea conditions and capacity upside. On entering service at the Bauxite Hills Mine, the OFT will be renamed Ikamba - the traditional Ankamuthi word for Saltwater Crocodile which inhabit the waterways around Bauxite Hills and which have certain characteristics in common with the new OFT!

Product Screening Upgrade

The concept for the expansion of screening capacity has been amended since the DFS, with MMI electing to install a new screening plant with a capacity of a 1,500 WMT/hr, comprising an Apron and a Wobbler Feeder. This will replace one of the existing grizzly and vibrating screen plants, with the second being retained for backup, product blending and additional capacity. The combined new wobbler and retained screen will have a nameplate capacity of approx. 2,500 WMT/hr. It is expected that adopting this alternate screening technology will increase the throughput rate and provide greater resiliency in handling wet product. Based on the procurement activities completed to date the commissioning of the new screening plant is expected in March 2024. In the interim, the existing two screening plants will provide sufficient throughput capacity to meet the improved rates at the Barge Loading Facility in 2023. These plants underwent a major maintenance overhaul in the recent shutdown and are now providing much higher levels of availability over Q4 2022.

Contact:

Tel: +61 (0)412 036231

FORWARD LOOKING STATEMENT

This announcement contains certain 'forward-looking statements' within the meaning of the securities laws of applicable jurisdictions. Forward- looking statements can generally be identified by the use of forward-looking words such as 'may,' 'should,' 'expect,' 'anticipate,' 'estimate,' 'scheduled' or 'continue' or the negative version of them or comparable terminology. Any forecasts or other forward-looking statements contained in this announcement are subject to known and unknown risks and uncertainties and may involve significant elements of subjective judgment and assumptions as to future events which may or may not be correct. There are usually differences between forecast and actual results because events and actual circumstances frequently do not occur as forecast and these differences may be material. Metro does not give any representation, assurance or guarantee that the occurrence of the events expressed or implied in any forward-looking statements in this announcement will actually occur and you are cautioned not to place undue reliance on forward-looking statements

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