Bauxite producer Metro Mining Ltd (ASX:MMI) has extended and signed new contracts for shipments covering the next two years which – adding to existing contracts – will ensure a contracted offtake of 6.9 and 6.1 million Wet Metric Tonnes (WMT) in 2025 and 2026 respectively.
Metro signed multi-cargo offtake agreements were signed with three Chinese companies: this included an extended contract with integrated aluminium company Xinfa Aluminium Group, plus new contracts with China Aluminium International Trading Group, Co. Ltd and Shandong Lubei Enterprise Group General Company.
The latter is based in Shandong Province, and is a diverse chemical manufacturing group.
The contracts themselves are a combination of FOB and delivered (CIF), with some contracts containing mutual options for additional spot cargos.
Additionally, offtake built around shorter-term pricing quotation period is 80% in 2025 and 93% in 2026.
Managing director and CEO Simon Wensley said the contract signings reflected MMI’s strong support base.
“This high-quality portfolio of customers is a testament to Metro bauxite’s competitiveness and its technical service, commercial flexibility and efficient and large-scale logistics to establish a robust and low risk market positioning,” he said.
MMI has been trading at 5 cents.
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