A cement supply crisis is set to impact the Island's booming construction sector as early as January.

The Island's only bulk cement supplier Bermuda Cement Company has been ordered to leave its premises at Dockyard on December 31.

After a five-year battle of wills with Government, company president Jim Butterfield said the 43-year-old cement operation will now shut and unless he is told who is to take over the facility he will send more than $100,000 of spare parts and equipment back to the US.

Such a move would likely put the facility out of commission for an extended period of time, even if a new operator is eventually found."

Unless we hear from someone we will send our spare parts back to the manufacturers and sell off our tools and equipment,"warned Mr. Butterfield.

"In one way I'm relieved that the fight is over. I've been waging a war trying to find a solution that works for the community. The Bermuda Cement Company has given 43 years service to Bermuda.

"I have cared for the community of Bermuda but now I'm off the hook. Government officials wanted us to fail. So for them this is a good day."

What is to become of the twin cement storage silos and facility at Dockyard is unknown.

Senior figures at the Government quango West End Development Company, including general manager Andrew Dias and chairman Stanley Lee did not immediately return telephone calls yesterday.

Wedco is the site landlord and has demanded Bermuda Cement Company sells 20 percent of its shares "on the street,"demolishes its current facility and builds a new one 300 yards away and hands over the new facility at the end of a new 21-year lease.

Those requirements appeared to have been accepted earlier this year and planning approval was given for a new facility but when more accurate costings showed it would likely take between $12 million to $15 million to demolish the current silos and construct the new facility, a figure double earlier estimates, the cement company and its shareholders reconsidered and concluded such a redevelopment was commercially unviable as it would require a doubling of cement prices for the Island.

Concerned officials from Mexico-based Cemex, which supplies the bulk cement to the Bermuda Cement Company and holds a 40 percent stake in the business, met with Premier Ewart Brown and Wedco in the past few weeks to talk about the situation.

On Tuesday BCC asked Wedco for a two-year extension to its current lease while a committee was set up involving Cemex, Wedco and the Premier's office to find a way forward.

But in a letter to the Bermuda Cement Company on Wednesday, Wedco boss Mr. Dias said that as BCC appears to have done nothing to meet the requirement to sell 20 percent of its shares or sign a new 21-year lease "any extension offer or special condition that was previously granted is now null and void."

He goes on: "Wedco unfortunately is not in a position to offer BCC any further extensions. Wedco expect BCC to vacate their current location at the end of our current lease, which expires on December 31."

Cement boss Mr. Butterfield said his company will ensure there is no cement shortage between now and December 31.

A cement supply ship has just visited the Island and another is scheduled for the early part of December with an option for a further delivery if demand dictates.

Last night the Construction Association of Bermuda was holding an emergency meeting to assess the situation.

* If you have any information about plans for future concrete shipments, please contact Scott Neil at sneil@royalgazette.bm.