Adbri and Cockburn Cement have announced a $199 million investment to overhaul its Kwinana cement operation with a modern state of the art facility.
The Kwinana Upgrade Project will combine Adbri’s Munster and Kwinana cement operations in Western Australia to create a single facility that will increase the company’s annual production capacity in Western Australia from 1.1 million tonnes per annum (mtpa) to 1.5mtpa.
The upgrade will enhance Adbri’s position as a cement supplier, with the upgrade forecast to save the company $19 million in its first year. The new facility will replace cement milling equipment that is more than 50 years old.
Adbri expects the upgrade to also reduce its carbon footprint by 20 per cent compared to existing operations. This will be achieved by decreasing road transport and boosting plant efficiency.
The upgrade includes a fully integrated and automated facility, including a bulk materials conveyor that connects the Kwinana Bulk Terminal facility to a 110,000-tonne clinker storage shed. An automated reclaim system to reduce road transport will also be included.
Adbri also plans to utilise a slag feed system, a modern ball mill circuit with two cement mills capable of grinding slag and clinker, and silo and despatch upgrades, including a 21,000-tonne finished product storage area and truck loading and weighbridge infrastructure.
The net present value benefits of the upgrade are expected to be more than $125 million.
Adbri chief executive officer Nick Miller said the upgrade expands on Adbri’s contribution to Western Australia.
“Our Munster and Kwinana cement operations have helped build Western Australia for over half a century, supplying a vital material to the construction and mining sectors,” he said.
“The Kwinana Upgrade Project represents a $199 million investment that will modernise our cement production capabilities, create employment opportunities during the construction phase and support the long-term growth of the Western Australian mining and construction sectors.”
Adbri expects the project to be finalised and commissioned by mid-2023.