01 March 2012 11:48 [Source: ICIS news]
LONDON (ICIS)--Norwegian fertilizer producer Yara has signed a heads of agreement with Australian mining services company Orica and US-based energy firm Apache to construct a 330,000 tonne/year ammonium nitrate (AN) plant on the Burrup Peninsula, Australia, Yara announced on Thursday.
The heads of agreement also includes the creation of a joint venture which will distribute AN and other explosives products to mining customers in the Pilbara region.
Yara will operate the AN plant, while Orica will manage sales and distribution.
According to a statement from Yara, the final agreement is subject to the conclusion of negotiations over the engineering, procurement and construction contract for the AN plant, and approval from the companies’ boards.
If the agreement is approved, the companies are aiming for construction on the plant to begin in mid-2012
Yara and Orica will each have a 45% interest in the joint venture, and Apache the remaining 10%.
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