ABx Group and Adelaide Brighton Cement Limited (ABCL), an Adbri Limited subsidiary, have signed a five-year agreement for the supply of bauxite from ABx’s DL130 Bauxite Project.
Under the agreement, the cement-grade bauxite will be delivered to ABCL’s Birkenhead cement manufacturing operation in South Australia.
The agreement anticipates a five-year supply of 90,000-120,000 tonnes of bauxite from ABx’s DL130 Project in northern Tasmania, with the first shipment expected in Q1 2024.
Sale price has been agreed upon for the first shipment and is both profitable and commercially secure. The sale price for the following shipments will be negotiated. ABCL has the option to extend the contract for an additional five years.
The mine lease application for DL130 is being processed, and mining of cement grade and fertiliser grade bauxite is expected to begin in Q1 2024.
“This 5-year agreement with ABCL for the supply of cement-grade bauxite from our DL130 Bauxite Project represents a significant milestone for ABx and endorses the suitability of our bauxite for the broader cement industry. It enables both parties to plan for ongoing supply with confidence. Importantly, regular mining operations to supply ABCL will increase ABx’s ability to secure additional customers, for which there are active discussions,” ABx Group Managing Director and CEO Mark Cooksey said.
