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Incitec Pivot update on Western Australia Business

Mining News - Published on Mon, 18 Jun 2018

Image Source: kalkine.com.au
Incitec Pivot Limited advised that its Dyno Nobel business has been awarded an explosives products and services supply contract with Fortescue Metals Group subsidiaries Chichester Metals Pty Limited and FMG Solomon Pty Limited from July 2018 until December 2023.

Having regard to IPL’s contractual commitments to its third party supplier of ammonium nitrate in Western Australia, the combined impact of the award of the new contract and other mitigating actions is expected to improve Net Profit After Tax as compared to amounts disclosed on 6 December 2017 and 11 January 2018.

The combination of the various mitigating actions is expected to result in a positive NPAT impact as follows:
1. FY18 - no change to amounts previously disclosed
2. FY19 - $6m (adverse NPAT impact has reduced from $16m to $10m)
3. FY20 - $15m (adverse NPAT impact has reduced from $32m to $17m)
4. FY21 - $24m (adverse NPAT impact has reduced from $43m to $19m)
5. FY22 - $9m (adverse NPAT impact has reduced from $20m to $11m).

Following these mitigating actions, it is not anticipated that any further disclosures will be required in relation to IPL’s contractual commitments to its third party supplier of ammonium nitrate in Western Australia.

Ms Jeanne Johns Managing Director & CEO of IPL, said that “Dyno Nobel is delighted to be partnering with Fortescue. We have shared values of safety and a commitment to practical innovation.”

Source :

Posted By : Rabi Wangkhem on Mon, 18 Jun 2018
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