ABx Group (ASX: ABX) has signed a breakthrough agreement with Adelaide Brighton Cement Limited (ABCL), a subsidiary of Adbri Limited, for the supply of cement-grade bauxite to ABCL’s Birkenhead cement manufacturing operation in South Australia.
The agreement forecasts supply of 90,000 to 120,000 tonnes of bauxite over a five-year term from ABx’s DL130 Bauxite Project in northern Tasmania, with first shipment anticipated in Q1 2024.
The bauxite sale price has been agreed for the first shipment and is satisfactorily profitable and commercial-in-confidence. The sale price is to be negotiated for subsequent shipments. ABCL has the option to extend the term for a further five years.
The mine lease application for DL130 is in progress, with approval pending and mining of cement grade and fertiliser grade bauxite anticipated to commence in Q1 2024.
This five-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,” ABx Group Managing Director and CEO, Mark Cooksey, said.
“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.”