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, noted 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.
