ABx Group (ASX:ABX) has signed a 5-year agreement with Adelaide Brighton Cement, a subsidiary of Adbri (ASX:ABC), for the supply of cement-grade bauxite.
ABx, which has an $18.55 million market capitalisation, says the bauxite will come from its DL130 Bauxite Project in northern Tasmania and will be shipped to Adelaide Brighton Cement’s Birkenhead cement manufacturing operation in South Australia.
This is anticipated to begin in Q1 2024.
ABx says the agreement forecasts the supply of 90,000 to 120,000 tonnes of bauxite over the 5-year term. The bauxite sale price has been agreed upon for the first shipment and is ‘satisfactorily profitable and commercial-in-confidence’, according to ABx.
The sale price is to be negotiated for subsequent shipments. Adelaide Brighton Cement has the option to extend the term for a further 5 years.
Commenting on the agreement, ABx Group Managing Director and Chief Executive Officer (CEO) Mark Cooksey says: “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.
“Importantly, regular mining operations to supply ABCL will increase ABx’s ability to secure additional customers, for which there are active discussions.“
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.”
The company notes the mine lease application for DL130 is in progress, with approval pending and mining cement grade and fertiliser grade bauxite expected to begin in Q1 2024.
ABx Group is an Australian minerals company focused on delivering materials for a cleaner future. The company is focused on rare earths, hydrogen fluoride, aluminium fluoride, and bauxite.
Write to Aaliyah Rogan at Mining.com.au
Images: ABx Group