Cement from Kwinana is produced from coal as well as natural gas, not DFO, that's for the transport vehicles. Newcastle coal futures have exceeded all-time highs yesterday excessing US$274/t. What wasn't reported is the cement calciners associated with coal fueling are being/have been decommissioned recently and the fuel mix is switching more to gas. Such gas is not linked to the international LNG price.
So, WA produced cement will not be impacted by the LNG price, but the WA gas in place of coal, which will materially increase the energy bill. Anyway, there is the debt on the balance sheet to worry about.
Gas bill would have been much higher, can than Alan Carpenter for that.
