Bermuda?s main cement supply will continue to be run by the Bermuda Cement Company for a further year following talks between the company and the Government. The Bermuda Cement Company was preparing to shut down its operation at Dockyard at the end of this month after a breakdown in its relationship with its landlord, the Government quango The West End Development Company.

Claiming Wedco had placed ?unreasonable hurdles? in its path, the cement firm announced in September it was to shut down its 40-year operation after demands that involved a multi-million dollar redeveloping of the current cement silo site and opening up its shareholding to the general public.

A clause in the draft deal that Bermuda Cement Company boss Jim Butterfield believes could have resulted in the forfeiture of the firm in the event of an unavoidable stock market fluctuation, was too much to agree to and so Mr. Butterfield said his company would end its cement supply operation on December 31.

In a joint statement it was reported that Bermuda Cement Company?s lease to operate from the Royal Naval Dockyard has been extended to December 31.

?This decision is taken to allow flexibility in further negotiations and to remove any anxiety within the community regarding the continued supply of cement,? read the statement.

Both sides have agreed that no further public comment will be made until final arrangements have been concluded.