21 May 2012 10:35 [Source: ICIS news]
LONDON (ICIS)--Yara International has agreed to form a joint venture with Australian mining services company Orica and US-based energy firm Apache to build a 330,000 tonne/year ammonium nitrate (AN) plant on the Burrup Peninsula, Australia, the Norwegian fertilizer producer said on Monday.
Construction of the plant is expected to have a capital cost of around $800m (€624m), excluding capitalised interest, and is expected to be complete by the end of 2015.
The plant will distribute AN and other explosives products to mining customers in western Australia’s Pilbara region.
"This is an important and value-creating project for Yara that confirms our dedication and ambition to be among the leading suppliers of [AN] globally. Together with our partners, we look forward to servicing the fast growing Pilbara iron ore market," said Yara CEO Jorgen Ole Haslestad.
Orica's CEO Ian Smith said: "This is an extremely important project for Orica. Together with our partners we have a clear vision for servicing the fast-growing Pilbara iron ore market, which is being strongly embraced by our customers in the region."
The three companies signed a heads of agreement for the joint venture at the beginning of March.
($1 = €0.78)
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