Metro Mining Limited announced that it has extended the Strategic Cooperation Agreement with Xiamen Xiangsen Aluminium Limited (Xiangsen) for 1.5
Million Dry Metric Tonnes per annum by 2 years to 2026. Binding terms for the 2023 offtake component have also been agreed taking total binding offtake to 5 Million Wet Metric Tonnes for 2023. On 25th November 2021 Metro announced an expanded and extended strategic LOI with Xiangsen Aluminium for the supply of approximately 5 Million Wet Metric Tonnes (WMT) of bauxite for delivery between 2022 and 2024. This has been extended by a further 3.4 Million WMT over two years into 2026. The quality specification continues to be the Metro Blend. Xiangsen has fulfilled 100% of its offtake commitments under previous and current agreements totaling 1.1 Million WMT in 2021 and 1.7 Million WMT in 2022. Binding terms have now been agreed for 2023. Pricing terms are confidential however comprise of a formula related to the Chinese alumina price within a "floor" and "ceiling" range which ensures that Metro can benefit from improved market conditions. 3.3 Million WMT offtake for 2023 is already contracted with foundation customer Xinfa as disclosed in previous announcements, which takes Metro's target sales to 5.0 Million WMT. This agreement continues the evolution of the medium-term sales portfolio towards a diverse set of quality specifications, pricing periods and formula to diversify exposure to market trends. The Bauxite Hills Mine and supply chain are running at full capacity and will do so through 2023 as the elements of the expansion to 7 Mt/a capacity are progressively put in place.