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QPMC signs 5-yr supply deal with Village Trading for 30mn tonnes of quarry products

QPMC and Village Trading officials after signing the agreement. All grades supplied to QPMC match the Qatar construction specifications and Ashghal’s quality standards.

Qatar Primary Materials Company (QPMC) has signed a new off-take agreement with Village Trading Group for the supply of 30mn tonnes of high quality quarry products for the next five years.
Under the terms of the agreement, Village Trading has agreed to supply QPMC with 6mn tonnes of gabbro aggregates annually over the next five years.
The agreement was signed by Eisa al-Hammadi, QPMC chief executive and Essam al-Abed, Village Trading Group chief executive.
In planning the import of the required quantity, Village Trading is committed to providing QPMC with gabbro aggregates of grades: 0-5 mm gabbro and 5-32mm grades, all commencing on January 1, 2016.
All grades supplied to QPMC match the Qatar construction specifications and Ashghal’s quality standards.
QPMC seeks to “stabilise the prices of primary infrastructure materials and establish quality standards for aggregates and limestone in the long-term as part of its pivotal role in the country’s infrastructure development on the instruction of the Qatari government,” al-Hammadi said.
The agreement comes after the company secured supply agreements procuring additionally about 22mn tonnes of primary materials by private Qatari companies that operate overseas quarries.
“We offer specialised services to the construction industry and have a unique full operational cycle by supplying construction materials from the source combined mining and shipping operations in Fujairah and Ras Al Khaimah in the UAE to the markets in Qatar via two ships of a total capacity of 90,000 MT and our fleet of 60 trucks loading/discharging from Mesaieed Port and the Pearl Qatar to our customers in order to secure a regular supply of Gabbro aggregate and limestone,” al-Abed said.
Ashghal and QPMC had recently signed a framework of agreement whereby QPMC will supply Ashghal with 91mn tonnes of gabbro and limestone for the next five years, making it one of the main customers of QPMC and a catalyst for infrastructural development in Qatar.
The decision to launch sales of primary materials on the local front, through QPMC will allow its strategic partner Ashghal and the Qatari contracting companies involved in construction projects in general, to take advantage of competitive prices.
To meet the increasing demand for primary materials, amidst thriving construction sector, QPMC is increasing the capacity of the bulk materials with the construction of the Gabbro Berth Terminal in Mesaieed Port, which will have an unloading capacity of 34mn tonnes a year.
In Lusail, QPMC’s jetty will annually supply 3mn tonnes of construction material to support the construction work there. It has also set up two floating jetties in Ras Laffan to supply the primary materials with total port receiving capacity of 9mn tonnes a year.
The company has recently signed five agreements with private sector establishments for the supply of primary construction materials to the Qatari market, mainly gabbro and limestone.

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