Metro Mining wins takeover bid for Gulf Alumina
Metro Mining has gained control of Gulf Alumina following a $50 million takeover.
Gulf Alumina owns the Skardon River Bauxite Project, which adjoins Metro Mining's Bauxite Hills Project in the Cape York Peninsula, far north Queensland.
Metro Mining previously owned 39 per cent of Gulf Alumina and now controls 96 per cent of shares.
Metro will immediately start work to integrate Metro and Gulf’s adjoining bauxite projects on Western Cape York with a view to creating a large, independent, long life, low capital cost and high margin Australian bauxite company.
In conjunction with this, Metro Mining will prepare a Bankable Feasibility Study (BFS) that is expected to reflect a higher production rate and a longer mine life than would be possible with Metro’s Bauxite Hills project on a standalone basis.
It is expected that the BFS will also reflect the benefit of the estimated $200 million of synergies that can be realised by integrating the two projects.
Metro Mining CEO Simon Finnis said he hoped the combined company could be exporting bauxite by 2018.
"We think this is a great deal with great timing and it is an exceptional value deal," he said.
"From a geographical point of view it is completely logical that these things should be together."