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Australian bauxite miner Metro Mining Limited has signed two binding spot cargo agreements of approximately 60,000 Wet Metric Tonnes each and these are coupled with a Non-binding Letter of Intent with Shanxi Liulin Senze Aluminium Company Limited.
Highlights Include
One spot cargo has been loaded and another due in early July 2021
Delivery of 1 Million Dry Metric Tonnes in total in 2021
Overall supply of 3 Million Dry Metric Tonnes of bauxite over 3 years, 2021 through to end 2023
Option of a 1-year extension to the Lol at the agreement of the Parties
Pricing by way of a market price agreed quarterly in advance
The parties are working to finalise binding documentation for the first year of the contract in good faith, and as soon as practicable
This refinery has an alumina capacity of 1.3 million tonne requiring approximately 3.0 Million DMT of bauxite annually. hanxi Senze is a division of Senze Energy Group General Company Group which produces alumina for Chinese domestic and international markets from its plant in Shanxi Province. Along with many other inland refineries Shanxi Senze is looking to partially replace its historical supply of domestic bauxite with that of supply from overseas.
The Non-binding Agreement is in addition to Metro's Offtake Agreement with Xinfa for 2.3 Million WMT in 2021 and, once binding, will go a long way towards covering Metro's production target for this year.