Metro Mining sets a quarterly bauxite record despite cyclone and OFT downtime
Metro Mining shipped 1.8 million wet metric tonnes (WMT) of bauxite in the three months to June 30, 2026, up 7 per cent from the corresponding period of 2025 and the highest quarterly volume in the company's history. The result was achieved even as operations were disrupted by Tropical Cyclone Narelle and the temporary dry-docking of the company's Offshore Floating Terminal (OFT) Ikamba. Chief Executive Officer Simon Wensley framed the print as a proof-of-concept for Metro's new integrated planning and operating system, noting that record output came despite the absence of the primary transhipper for part of the quarter. Metro retained its full-year 2026 shipment guidance of 6.6 to 7.1 million WMT and signalled it expects to ship more than 5 million tonnes in the second half as conditions improve.
Operational momentum built through June, when Metro set a monthly record of 779,000 WMT, up 29 per cent from May, with 97 per cent of shipments handled through OFT Ikamba. The company also cleared and moved 833,000 bank cubic metres of waste during the first half, around 70 per cent above plan, and completed a 170,000 WMT extension to its port stockpile. The share price reaction was negative, with reports indicating a decline of roughly 3.5 to 4 per cent on the day as investors weighed pricing and freight signals against the volume milestone.
Pricing, freight and aluminium backdrop shape the quarterly economics
Metro said market conditions were weak during February and March when second-quarter prices were negotiated, leaving average CIF bauxite pricing down 14 per cent versus the fourth quarter of 2025. As freight rates from Guinea climbed, the company secured an average 9 per cent increase in CIF pricing for the third quarter. International alumina prices and northern China prices have since recovered around 12 per cent from March-April lows, while southern Chinese prices have risen only about 4 per cent because new refineries have intensified competition.
The aluminium market itself tightened further during the quarter. Production curtailments at Middle Eastern smelters, on top of supply already short at the start of 2026, pushed London Metal Exchange aluminium to nearly USD 3,800 per tonne before easing slightly in June, still about 20 per cent above a year earlier. Capesize freight from West Africa jumped from roughly USD 25 per dry metric tonne (DMT) before the Gulf conflict to about USD 40 per DMT during the quarter, lifting traded bauxite prices by roughly 10 per cent.
VBX shifts Wuudagu from explorer to developer with Chinese offtake framework
VBX is moving its flagship Wuudagu Bauxite Project in Western Australia beyond pure exploration after securing preliminary funding and offtake pathways alongside ongoing technical studies. The latest milestone is a non-exclusive framework agreement with the Hong Kong subsidiary of a major Chinese aluminium group, under which the Chinese counterparty would purchase between 2 million and 3 million tonnes of bauxite annually and provide investment expected to fund a material portion of construction and commissioning. Pricing would be linked to an agreed reference index with quality-based adjustments, and the deal remains subject to completion of the Definitive Feasibility Study and final negotiations.
Technical work has paralleled the commercial progress. Wuudagu's measured and indicated resource has been upgraded to 131.9 million tonnes at approximately 40.2 per cent alumina and 12.6 per cent silica, with metallurgical test work indicating mass recovery of 70 to 73 per cent and beneficiated product grades approaching 45 per cent alumina. A 2025 pre-feasibility study outlined about 3.5 million tonnes per year over a 10-year mine life, with capital expenditure around A$125 million and average annual EBITDA near A$143 million, though those figures remain subject to DFS scrutiny. VBX separately holds an indicative A$10 million prepayment term sheet with thyssenkrupp Materials Trading Asia tied to future deliveries.
Alcoa reaches final investment decision on Wagerup gallium plant alongside bauxite-linked critical mineral push
The Australian, Japanese and United States governments together with Alcoa Corporation announced a final investment decision for a gallium production plant co-located at Alcoa's Wagerup alumina refinery in Western Australia. The facility will be constructed and operated by Alcoa and is positioned as a new, reliable source of gallium for partner-government efforts to strengthen critical mineral supply chains used in semiconductors and defence applications. CEO William F. Oplinger described the decision as a shared commitment among governments and industry, while Alcoa said its participation is not expected to have a material impact on its financial position or results.
The Wagerup site sits on Northern Jarrah Forest bauxite ore, which Alcoa's local critics describe as the lowest-grade bauxite the company mines anywhere in the world. The Jarrahdale Forest Protectors argue that extracting gallium from that ore will be more energy-intensive and lower-yield than alternative sources and warn that national-interest designations could enable broader strip-mining of the Darling Range. Alcoa has not yet detailed construction timing beyond noting that activities will follow final site preparations.
Vedanta advances captive renewables and secures environmental clearance for Sijimali bauxite mine
Vedanta Aluminium Metal's board approved definitive agreements on July 30, 2026 to take a 26 per cent equity stake in a 150 MW round-the-clock Battery Energy Storage System project with Serentica Renewable India 9 Private Limited, investing INR 165 Crore under a 25-year Build-Own-Own-Maintain structure. The BESS will be paired with Vedanta's existing 600 MW solar delivery agreement to provide 95 per cent assured supply during non-solar hours, with commissioning expected within 12 months of signing the PDA and financing on a 70:30 debt-to-equity basis. The company framed the deal as a hedge against volatile power exchange prices and a step in its decarbonisation roadmap.
The same disclosure noted that Vedanta Aluminium has secured mining lease and mine opening permissions for the Kuraloi (A) North Coal Block and environmental clearance for the Sijimali Bauxite Mine. Renewable energy consumption rose 38 per cent year-on-year to 701 million units, the company said, while the Lost Time Injury Frequency Rate dropped 80 per cent quarter-on-quarter to 0.04 and credit ratings were upgraded to AA+ (Stable) by both CRISIL and ICRA.
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