Peter WilliamsThe West Australian
Incitec Pivot has clawed back $54 million from losing a Pilbara client by securing a five-and-a-half year contract to supply explosives to Fortescue Metals Group’s mining operations.
Gina Rinehart’s majority-owned Roy Hill Holdings in February stopped using the services of Incitec subsidiary Dyno Nobel when their contract expired.
Dyno Nobel’s contractual obligations to a third-party supplier of ammonium nitrate was set to carve $111 million off Incitec’s net profits over the next four years.
Incitec today said those losses would be reduced to $57 million over that period.
It did not disclose the value of the Fortescue contract.
“Dyno Nobel is delighted to be partnering with Fortescue,” Incitec managing director Jeanne Johns said. “We have shared values of safety and a commitment to practical innovation.”
The announcement was made after Incitec’s shares closed down 8¢ to $3.37.