Incitec Pivot Won't Supply BHP Iron-Ore Operations Beyond 2019
December 05 2017 - 6:03PM
Dow Jones News
By Robb M. Stewart
MELBOURNE, Australia--Industrial-chemicals producer Incitec
Pivot Ltd. (IPL.AU) warned Wednesday of a financial hit in the
coming years after being dropped as the supplier of ammonium
nitrate to BHP Billiton Ltd.'s (BHP.AU) iron-ore operations in
Western Australia.
Incitec said it had been notified that when the current supply
contract expires in late November 2019, it will cease to supply the
miner with ammonium nitrate prill, an ingredient for
explosives.
While no financial impact is expected for the 2018 and 2019
financial years, the company said that the loss of the volumes is
estimated to result in an up to 10 million Australian dollars
(US$7.6 million) hit in fiscal 2020 and A$25 million the year
after, and minimal impact beyond that.
Incitec added it may be able to mitigate the cost to some extend
through other commercial arrangements.
Write to Robb M. Stewart at robb.stewart@wsj.com
(END) Dow Jones Newswires
December 05, 2017 17:48 ET (22:48 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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