14/06/2018 - 15:38

Incitec wins FMG contract

14/06/2018 - 15:38

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Melbourne-based fertiliser and explosives manufacturers Incitec Pivot and Orica have continued their battle for iron ore contracts in the Pilbara, with Incitec winning a five-year supply deal with Fortescue Metals Group.

Incitec wins FMG contract
Incitec was awarded an explosives and services supply contract with Fortescue.

Melbourne-based fertiliser and explosives manufacturers Incitec Pivot and Orica have continued their battle for iron ore contracts in the Pilbara, with Incitec winning a five-year supply deal with Fortescue Metals Group.

Incitec said its Dyno Nobel business had been awarded an explosives and services supply contract from July 2018 until December 2023.

“Dyno Nobel is delighted to be partnering with Fortescue,” chief executive Jeanne Johns said.

“We have shared values of safety and a commitment to practical innovation.”

Orica currently supplies explosives to Fortescue and said it would continue with the contract through until December 2019.

“We note that as allowed under the terms of that contract, FMG will source a portion of their ammonium nitrate requirements from an external party from July 2018,” Orica said in a statement to the ASX.

“We expect the Burrup plant to be very near to capacity from 2020 onwards and do not expect any material change to our financial outlook in FY18 and FY19.”

The news comes after Incitec announced in January that it had lost a supply contract with Roy Hill and followed the loss of an explosives contract with BHP in December.

In March, Orica said it had won the Roy Hill and BHP contracts.

Incitec uses Wesfarmers’ CSBP (which has a plant at Kwinana) as its third-party supplier.

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