Adbri subsidiary Cockburn Cement has received a small extension to its contract with Alcoa of Australia, worth at least $25 million.
Cockburn Cement, whose contract with Alcoa was due to expire this month, will continue to supply quicklime to the alumina manufacturer until January 2023.
The extension is expected to generate between $25 million and $35 million in revenue to the Adbri subsidiary.
That compares to the $70 million worth of lime Alcoa was previously purchasing from Cockburn Cement before it switched to imported supplies for its WA operations, which consist of the Kwinana, Pinjarra and Wagerup refineries.
Adbri managing director Nick Miller thanked Alcoa for continuing on with Cockburn Cement.
“The extension reinforces [Cockburn Cement‘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,” he said.
Adbri’s shares closed up 7.2 per cent on today’s news to trade at $2.99 each.
