Australian cement supplier Adelaide Brighton Ltd says it is talking to alternative coal and shale suppliers due to uncertainty over a subsidiary’s deal with debt-laden Griffin Coal.
Griffin Coal, now under administration, is the sole supplier of coal to Adelaide Brighton subsidiary Cockburn Cement’s Munster cement and lime works in Western Australia until December 2017.
Adelaide Brighton said in a statement on Wednesday coal supplies were continuing as normal.
However, it said there was "a degree of uncertainty as the voluntary administration process continues".
"Accordingly, Cockburn Cement is in discussions with alternative suppliers for the supply of coal and shale or substitute products," it said.
"It is not possible to state whether there will be any material adverse impact to Adelaide Brighton Ltd or what impact there may be."
Cockburn Cement has lodged a proof of debt with Griffin Coal administrators KordaMentha for almost $1 million.
This relates to losses associated with procuring coal and gas from alternative sources prior to the appointment of administrators.
Griffin Coal was placed in administration on January 4 after missing deadlines for the payment of debt instalments and tax liabilities.
Creditor claims so far total about $1 billion.