Norway’s Yara establishes AN plant JV with Orica and Apache

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.

Yara will own a 45% stake in the joint venture, while Orica will hold 45% and Apache the remaining 10%.

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)

By: Leigh Stringer
+44 208 652 3214

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