The Australian bauxite producer Metro Mining (ASX: MMI) is aimed at the end of 2025 to 7 million tonnes of production, while the company is implementing its plan to expand capacity and reduce production costs.
“Scale benefits are by far the most important lever we draw to reach that cost number,” said Simon Wensley, director of Metro Mining, in a recent investing news network interview, and noted that optimization and expansion will increase the costs to US $ 30 per dry metric ton that was delivered.
“And if we can reach that number, we will be the cheapest producer in that marginal market in China,” he said.
Bauxite is the primary ore that is used to produce aluminum, a valuable, lightweight metal that is essential for almost all aspects of the global energy transition. The demand for aluminum is expected to increase considerably in the coming years, powered by increased activity in transport, electric vehicle and clean energy sectors.
Metro Mining has already produced and sold more than 2 million tonnes of his production in the second half of 2025, said Wensley. He added that the company expects a “very strong” second half, with production volumes that are expected to reach between 4.5 million and 5 million tons between the end of the year.
“In the coming months and the next quarter we should see a real demonstration of that extensive capacity that flows through the market,” he noticed.
View the full interview with Simon Wensley, director of Metro Mining, above.
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