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Adbri receives BHP cement and lime contract extension


Adbri has been handed a four-year contract extension as a supplier for BHP’s Olympic Dam mine in South Australia.

The $160 million contract involves the supply of cement and lime to BHP’s Olympic Dam mine in South Australia, which holds major copper, gold, silver and uranium deposits.

The extension will run through to mid-2026 and represents a 20-year supply relationship between Adbri and BHP.

Adbri chief executive officer Nick Miller thanked BHP for continuing to choose local materials over imported alternatives.

“We are pleased to extend our long-term relationship with BHP at its Olympic Dam Project which demonstrates the strength of our integrated cement and lime position as well as our high quality and cost-competitive product offering,” he said.

“We thank BHP for supporting a home-grown manufacturer over an imported product which protects local jobs and benefits the broader South Australian economy.”

The contract extension follows Alcoa’s decision to not extend its lime contract with Adbri after July 2021. Alcoa will instead opt for imported products.

“We are disappointed with Alcoa’s decision to displace locally manufactured product with imports from multiple sources, particularly considering our almost 50-year uninterrupted supply relationship,” Miller said at the time of Alcoa’s decision.

The Olympic Dam mine is the largest copper operation in Australia and runs an integrated processing facility from ore to metal. Adbri recently scored a $29.1 million profit in the first half of 2020 despite impacts from COVID-19.

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