In a recent announcement, ABx Group has confirmed a five-year bauxite supply agreement with Adelaide Brighton Cement Limited (ABCL). ABCL, a branch of Adbri Limited, will receive cement-grade bauxite from ABx’s DL130 Bauxite Project, located in northern Tasmania.
Per the agreement, ABx will be responsible for the delivery of an estimated 90,000-120,000 metric tons of bauxite over a five-year period. The initial shipment is scheduled for Q1 2024. The bauxite’s sale price for this first delivery has been established and remains commercial-in-confidence. However, negotiations for the pricing of subsequent shipments will occur separately. ABCL will also have the option to extend the contract for an additional five years.
Simultaneously, the mine lease application concerning the DL130 Bauxite Project is undergoing approval processes. As per current insights, the mining of both cement and fertiliser grade bauxite from this project is anticipated to kick-start in Q1 2024.
Mark Cooksey, ABx Group Managing Director and CEO, commented on this development, highlighting the agreement’s significance.
“This 5-year agreement with ABCL for the supply of cement-grade bauxite from our DL130 Bauxite Project signifies a notable landmark for ABx. It confirms our bauxite’s relevance to the broader cement sector. This collaboration ensures a stable supply, fostering trust for both entities. Crucially, consistent mining operations catering to ABCL will bolster ABx’s prospects in securing more customers.”
He continued by noting that, for stakeholders, this agreement signifies a steady forecast in bauxite supply, which is vital for the cement manufacturing operations at ABCL’s Birkenhead facility in South Australia.