I would like to acknowledge the traditional owners of the land on which we meet, the Torabul and Jagera people and also the Ankamuthi people upon whose lands we operate the Bauxite Hills mine.
2021 was a challenging year, for everyone.
And it was also a very challenging year for Metro Mining. The Annual Report which is online and available here in hard cover includes a concise summary presented by our CEO/Managing Director and myself and our annual Sustainability Report. There are encouraging signs but as we meet today, the external environment remains challenging.
Unlike a number of Australia's commodity exports, Bauxite has not experienced significant upward price moves but cost inflation in key inputs is continuing. We have new expertise and capabilities on both the board and management team. And we have made some major decisions to improve the operating performance of the Company and to broaden the customer base.
We are all working to identify new operating and sales opportunities to significantly improve the resilience and financial performance of the Company going forward. Simon will go into these aspects in more detail. The Board and the management team have a vision, Metro Mining is preparing for the future and taking steps which will return your company to profitability and become the premier independent bauxite supplier, globally. We are executing further spot and long-term offtake agreements to ensure Bauxite Hills achieves 3.8M WMT for 2022. We will complete the DFS for the Stage 2 expansion in June which will provide a pathway to 6.0M WMT per annum.
At the same time, our vision is to ensure we continue to excel as a strong sustainable corporate and social citizen with a focus which is more than simply financial. It is also important to recognise how important our operation is - not only to Cape York, but for Far North Queensland, Queensland and the nation.
In 2021 Metro paid approximately $13.5M in wages. In line with our preference to support local residents and businesses, approximately 90% was paid to residents of far north Queensland.
We paid $364,261 in payroll tax and $6.87M in royalties to the Queensland Government.
In addition to salaries and taxes, we expect to pay almost $3M to indigenous parties in 2022. But, as I said earlier, Metro's contribution is far greater than financial. We have a clear commitment to Sustainable Development. I am particularly proud that Metro continues to focus on our partnerships with local communities including in Cairns, Hope Vale, Mapoon and the Northern Peninsula Area. The traditional owners of the land on which we operate, the Ankamuthi people and other Indigenous employees from a range of Cape York, Cairns and Northern Peninsular communities, hold 30% of thepositions at the Bauxite Hills Mine - the highest average since the commencement of operations and we are re-starting our Trainee Programme in 2022. In 2022 the community is demanding companies be held to account when it comes to social and environmental outcomes as well as financial contributions. Metro is proud of our contributions to our communities and our focus on preserving the cultural heritage of the area around our operations, minimising our environmental impact and leaving a lasting legacy for the community. We particularly recognise our shared responsibility with the Ankamuthi people to protect and preserve the land and water in which we operate. Metro continues to work with local Indigenous communities, business groups, councils, charitable organisations and local service providers to share the social and economic outcomes of mining. Metro is particularly proud of its ongoing reputation for employing and buying locally. We expect to facilitate 3 - 4 new indigenous business opportunities this year. We are committed to maintaining or improving the environment in which we operate. Our approach is based upon minimising environmental impacts by only disturbing land necessary to support mining operations and progressively rehabilitating mined areas as soon as possible. Metro acknowledges and supports the Australian Government's Emissions Reduction Plan. We have commenced evaluating de-carbonisation opportunities including renewable-energy sources such as solar and battery storage for the operation of the Bauxite Hills Mine. In summary, first, I would like to acknowledge our workforce who have delivered safe and productive outcomes in a difficult period. I also include our key site contract partners, Trans Shipping Australia, Blake Machinery Group and Cater Care. Secondly, I would like to acknowledge the support of our customers.
In March, we announced additional offtake agreements with our foundation customer, Xinfa to take Metro's contracted tonnage for 2022 to 3.8M WMT . Xiangsen Aluminium is now our second baseload customer with a strategic agreement that anticipates 1.7M Wet Metric Tonnes (WMT) per year offtake from 2022 to 2024. The 2022 tranche is already secured under binding terms. Thirdly we have secured Contracts of Affreightment (COAs) with our key freight providers for 2.0M WMT in 2022, including a three-year contract with Berge Bulk for approximately 1.5M WMT per year, importantly with fixed price and bunkers. Finally, and importantly, we recognise the strong support of existing and new shareholders through the $25 Million capital raising.
We also continue to look for new bauxite and other opportunities both within Australia and overseas to grow the business. Of course, we maintain a strong focus on safety which together with driving cost improvements and working closely with our prime haulage and marine contractors has enabled us in introduce new efficiencies and cost reductions into the operations. In closing. I would like to acknowledge Stephen Everett's contribution to the company. Stephen resigned from the Board in February after 9 years, including 7 as Chairman. We thank him for his outstanding contribution. We welcome Andy Lloyd to the Board. I would like to acknowledge, and thank, our CEO and Managing Director Simon Wensley for his tireless efforts. Likewise, I thank the senior management team, our own team members and our contractors for their considerable dedication and hard work. Finally, I thank shareholders for their ongoing faith and support.
Contact:
Tel: +61 (0) 7 3009 8000
Email: info@metromining.com.au
Web: www.metromining.com.au
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.
METRO MINING LIMITED 
