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ABx Group (ASX:ABX) signs five-year bauxite supply agreement with ABCL

ASX News, Materials
ASX:ABX      MCAP $10.00M
11 September 2023 15:57 (AEDT)

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ABx Group (ABX) has entered into a five-year supply agreement with Adelaide Brighton Cement (ABCL), a subsidiary of Adbri (ABC), to provide cement-grade bauxite to ABCL’s Birkenhead cement manufacturing facility in South Australia.

The agreement entails the delivery of 90,000 to 120,000 tonnes of bauxite over a five-year period, with the potential for extension, from ABx’s DL130 project in northern Tasmania.

ABx Managing Director and CEO Mark Cooksey expressed confidence in the agreement, stating that it provided a reliable supply source for both companies and expanded demand for ABx’s product.

“This five-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,” he said.

ABx’s mine lease application for DL130 is currently in progress and is expected to be prepared for its first bauxite shipment in the first quarter of 2024 at an agreed and profitable commercial sale price.

ABx shares were up 8.43 per cent, trading at 9 cents at 3:58 pm AEST.

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