BGC has started construction on tens of millions of dollars’ worth of infrastructure in a bid to start producing “green cement” after inking a deal with a lithium heavyweight.
BGC has started construction on tens of millions of dollars’ worth of infrastructure in a bid to start producing “green cement” after inking a deal with a lithium heavyweight.
The major cement supplier has locked in a five-year offtake deal with Tianqi Lithium Energy Australia to use a by-product from the nearby Kwinana hydroxide refinery in its cement mix.
TLEA, the joint venture of China’s Tianqi Lithium and IGO, is the operator of the mammoth Greenbushes lithium mine in the South West and the lithium hydroxide refinery in Kwinana.
BGC has broken ground on a new dedicated drying plant, alongside expanding its existing blending plant and building two new purpose-built silos and weighbridges.
The capital expenditure is to the tune of tens of millions of dollars, although the company was tight lipped on the exact figure expected to be spent.
Still in the pilot stage, the project involves substituting a percentage of the imported clinker- a higher carbon product- with the aluminosilicate byproduct of the refinery.
For every tonne of lithium hydroxide churned out, the refinery produces 10 tonnes of byproducts, majority of which is aluminosilicate.
That byproduct would otherwise be sent to landfill, with both BGC and TLEA highlighting the circular economy theme as their net zero carbon targets approach.
TLEA’ Kwinana lithium hydroxide refinery has been plagued with performance issues in the past.
The offtake contract terms are flexible, against a backdrop of subdued lithium market conditions and the need to build up market demand.
Wesfarmers and SQM, under their Covalent Lithium joint venture, are developing the Mt Holland lithium mine and are building their own lithium hydroxide refinery in Kwinana.
The “green cement” – as labelled on the BGC trucks - is yet to be formally launched with customers, with it currently being used across several pilot projects in mining.
Its only approved for use in masonry products, concrete blocks and mining applications currently, meaning it has some mining applications currently.
But stakeholders are advocating for the byproducts to be approved as an accepted ingredient in blended cement and concrete, for uses such as concrete house slabs.
BGC chief executive Daniel Cooper speaking at the launch event for the "green cement". Photo: Michael O'Brien.
BGC chief executive Daniel Cooper said the Kwinana industrial zone could become a green cement hub given the locality of the industry players.
“We have the two cement producers for Western Australia based here, we also have two lithium hydroxide refineries in Covalent Lithium and Tianqi and we’re right on an export port with Kwinana bulk terminal,” he said.
“There will be more aluminosilicate produced than we can use in Western Australia.
“Ultimately, this will be a green cement hub export market for either around Australia or globally, to produce a very low carbon cement replacement transport with minimal transport.”
Industry partnerships run strong through the Kwinana industrial zone, with more than 170 commercial exchanges taking place, according to the Kwinana Industries Council.
KIC chief executive David Harrison said the new product marked another important step by local industry to reduce emissions and find more sustainable ways of producing.
“These products are going to play an important role in building our future economy, community and prosperity,” he said.
“This new partnership continues to enhance the by-product exchange model that operates across the Kwinana Industrial Area.”
Mines and Ports Minister David Michael toasted BGC and TLEA’s partnership in responding to a unique opportunity to reduce emissions and mitigate waste.
“We know that mining and processing can create vast amounts of unwanted waste, and lithium hydroxide manufacturing creates large amounts of byproducts,” he said.
“In a global setting where governments are looking at ways to reduce waste and greenhouse gas emissions and societies demanding clean products, industry is having to work harder than ever to be at the forefront of sustainable manufacturing and the circular economy.”
