Bauxite Hills Mine News Sept 2017 I Page 1

Bauxite Hills Mine Newsletter

September 2017

Construction at Bauxite Hills Mine (95 kilometres

north of Weipa), commenced in July, following

the receipt of Mining Leases and environmental

approvals from the Queensland & Commonwealth

Government.

Metro contracted SAB Mining to commence

civil works on site with activity currently focussed

around the Skardon Port including establishing

the hardstand area for Port infrastructure,

upgrading existing roads and constructing

sediment dams.

Metro recently announced that SAB Mining

has also been awarded the Mining Contract,

supported strongly by their current performance

from a safety, Indigenous engagement and

productivity perspective.

Marine installation works are also advancing

under the Metro appointed Bauxite Transhipping

Services (BTS), with the cyclone moorings and

a tidal gauge installed in the Skardon River, the

Materials Offloading jetty constructed at the

Port and works for the bauxite Barge Loading

Facility commencing.

Construction requirements were simplified as a

result of Metro’s acquisition of Gulf Alumina Ltd

late in 2016 that included existing airstrip, light

vehicle roads, temporary camp and the port

location. Construction of the new camp for

mining operations is underway.

Mining operations are on schedule to commence

in April 2018. Based on the Bankable Feasibility

Study, Bauxite Hills Mine has a 92.2 million tonne

(Mt) estimated Ore Reserve and an initial

17-year mine life.

Bauxite Hills Mine is now

Under Construction

Bauxite Hills Mine News Sept 2017 I Page 2

After a comprehensive

environmental assessment

and community consultation

process, all environmental

approvals for the Bauxite Hills

Mine have been received

from State and Commonwealth

Governments.

On receiving these approvals, Metro’s immediate

focus has been to ensure all environmental conditions

are incorporated into our construction and operating

standards as we progress through construction into

an operating mine.

Metro’s environmental conditions identify a wide

range of activities to be undertaken on site to

mitigate potential impacts, a small selection of

these include:

■ Pre-clearance vegetation surveys and

fauna spotters during clearing activities

■ Surface water and groundwater monitoring

■ Land use management including fire

management and feral animal and

weed controls

■ Marine construction controls including

soft-start and marine mega-fauna spotters

■ Waste management procedures that

ensure all waste is removed from site, as

no new landfills are currently proposed

by Metro

■ Detailed rehabilitation planning to meet

accepted completion criteria

To meet these conditions requires integration of

environmental management into the construction

and mine planning processes, and provision of

appropriate on-site resources to undertake these

activities.

Research programs are also being developed for

listed marine and terrestrial fauna species, and for site

rehabilitation and bioremediation initiatives. Case

studies on site environmental activities and research

programs will be incorporated into future newsletters.

Colleen Fish | Environment & Communities Manager

Onsite Environmental Officer

Environment Matters

Metro has appointed Susanna Beech as the Site

Environmental Officer (SEO). Susanna is responsible

for integrating environmental approval conditions

with mining operations.

The SEO is a varied role with responsibility for field

monitoring, collation of data, early identification

of potential environmental impacts and

incorporating the environmental regulations into

achievable operating standards. It is the SEO’s

responsibility to communicate this to the mining

construction and operations teams and to assist

them to comply with these conditions.

Susanna has stepped into this role and is meeting

these challenges head on, quickly establishing

the required site processes and the importance

of meeting Metro’s environmental standards.

Bauxite Hills Mine News Sept 2017 I Page 3

Metro has undertaken extensive stakeholder

engagement activities, none more important than

those with the Traditional Owners and the Aboriginal

land owners for the Bauxite Hills Mine.

A combined Native Title and Land Access

Agreement for the Bauxite Hills Mine was reached

jointly with the Traditional Owners (Ankamuthi People)

and the land owner Old Mapoon Aboriginal

Corporation (OMAC).

The Agreement incorporates Traditional Owner

and Indigenous employment targets with priority

employment processes in place for the Traditional

Owners.

A Cultural Heritage Management Agreement

(CHMA) and payment of mining benefits to the

Ankamuthi People and OMAC are in place

for the life of the Mine.

Strong Partnerships

The CHMA identifies how Cultural Heritage issues are

to be managed on the mine site in accordance with

Ankamuthi people consultation and instruction.

Cultural Heritage clearances are required prior

to any significant land disturbance, incorporating

field surveys with the Ankamuthi people,

identification of items with CH significant and

management or mitigation measures for any

significant items.

Recently seven Ankamuthi people were on site

overseeing cultural heritage clearance for the

upcoming construction activities. Of the total

workforce on site during the initial construction

phase approximately 40% are indigenous.

Employment Statistics as at 20 September 2017 Percentage *

Company/Contractor Ankamuthi Other Indigenous Total Ankamuthi Other Indigenous Total

Metro 5 nil 8 43% 62%

SAB Mining 8 5 15 53% 33% 86%

Cater Care 1 (1)** 0 5 0 0 20%

TSA/Dadaru 1 (3)** 0 19 0 0 2%

Total 15 (4)** 5 50 30% 10% 40%

* 40% of workforce are Indigenous and from the Cape York region. ** Indicates positions in process of being filled by Traditional Owners

Employment Opportunities at the Bauxite Hills Mine

Jobs are posted at www.metromining.com.au or send

your resume & expressions of interest to Rob Mulholland

rmulholland@metromining.com.au

Bauxite Hills Mine News Sept 2017 I Page 4

Metro has negotiated an initial four-year 7Mt Binding

Offtake Agreement with Xinfa Group. Xinfa is one of

the largest integrated aluminium companies in China.

An Offtake Letter-of-Intent (LOI) has been signed with

Lubei Chemicals - China’s fifth largest bauxite importer.

The Lubei LOI is for an initial 0.5 to 1.0Mtpa for 3 years

commencing next year. A Binding Offtake Agreement

is currently under negotiation.

Approximately 60% of the production from the

Bauxite Hills Mine for the first four years is subject to

firm Offtake Agreement or Letter of Intent.

Phone +61 (0) 7 3009 8000 Fax: +61 (0) 7 3221 4811

Registered Office & Head Office: Level 2, 247 Adelaide Street, Brisbane, Q 4000

Postal Address: PO Box 10955, Adelaide Street, Brisbane Q 4000

For Further Information: www.metromining.com.au

Simple Mining Operations

Simple mining operation facilitates a quick start up

following the region’s wet season next year.

Bauxite will be mined from open cut pits and trucked

via haul road to a Barge Loading Facility. Once

loaded tugs tow the barges down the Skardon River

to an anchorage point at sea where it is loaded onto

bulk carriers.

Metro plans to commence mining at 2Mtpa increasing

to 6Mtpa over the first 4 years.

Taking Off with Off take