Incitec down on Roy Hill contract loss

January 12, 2018

Incitec Pivot will take a hit when its contract to supply Gina Rinehart's Roy Hill mine expires.

Incitec Pivot has warned that its full-year profits over the next four years will take an $81 million hit from the end of a contract to supply explosives products and services to Gina Rinehart's Roy Hill Iron Ore mine project in WA.

The company announced, after Thursday's market close, that it will cease to be Roy Hill's contracted supplier when its current contract expires on February 9.

The company expects the contract loss will result in a one-off hit of about $5 million in FY2018, $16 million in FY2019, $22 million in FY2020, $18 million in FY2021 and $20 million in FY2022 - with some of the losses mitigated by new commercial arrangements.

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