Metro Mining has secured three mining leases for the Bauxite Hills project from the Queensland Government in Australia.
The development comes after the company obtained environmental approval for the $35.8m project in June this year.
Go deeper with GlobalData
Construction works at the mine have started and are expected to be completed by the year-end.
Queensland Minister for Natural Resources and Mines Dr Anthony Lynham said: “Granting these leases allows Metro Mining to consolidate and unlock the potential of the significant bauxite reserve that exists on the western Cape York Peninsula, and generate hundreds of jobs for the region.”
The estimated bauxite reserve present within the three mining leases is understood to be around 92.2 million tonnes, while the total project is expected to have a resource of 144.8t.
Located 100km north-east of Weipa, the Bauxite Hills project is expected to provide up to 200 jobs.
Dr Lynham added: “The mine will produce bauxite for export and is planned to operate for an initial 17 years with opportunities for extending the life based on the known resources in the area.
“The start-up production rate of approximately two million tonnes of bauxite per annum is proposed increasing to approximately six million tonnes over a four-year period.”
Obtaining the leases is said to be a significant step towards bringing the mine into production, which is expected to start in the second quarter of next year.
