Adbri has extended a contract with Alcoa of Australia for the supply of quicklime, with just weeks to spare before the expiration of the previous agreement.
Adbri subsidiary Cockburn Cement (CCL) will earn between $25 million and $35 million from the one-year deal beginning 31 January, 2022.
This minimum and maximum will be contingent on Alcoa’s requirements over the timeframe.
Adbri managing director and chief executive officer Nick Miller said he was grateful to Alcoa for renewing the deal.
“We thank Alcoa for continuing to work with CCL around the supply of quicklime to their operations in Western Australia,” Miller said.
“The extension reinforces CCL’s position as a reliable and high quality supplier of lime through our local manufacturing and distribution network across Western Australia, supporting local manufacturing jobs, the resources sector and broader WA economy.”
The previous arrangement was due to expire at the end of January, potentially leaving Adbri without one of its most significant quicklime buyers.
The contract expiration had previously been extended from June 2021 to September 2021 before moving again to January 2022.
Previous agreements with Alcoa were for the supply of quicklime to its Wagerup operation but it wasn’t disclosed where the latest supply would be delivered.
In Adbri’s half yearly report to June 2021, the company cited several feasibility studies into potential developments for new lime kilns.
These new kilns could be in Kalgoorlie, Bunbury or Kwinana in Western Australia, Adbri stated.