22 October 2012 11:49 [Source: ICIS news]
LONDON (ICIS)--Australia’s Liberty Resources Ltd, through its wholly owned subsidiary Urea Corp of Australia, has signed a letter of intent (LOI) to supply Japan’s Marubeni Corp with up to 1m tonnes/year of urea and ammonia for a period of 25 years from its low-cost urea project in Queensland, the company said on Monday.
As part of this and ongoing discussions, Liberty Resources has expanded its plans for the Denison Urea Project to permit it to deliver up to 1m tonnes/year of ammonia and urea from the port of Gladstone.
Marubeni and Liberty will work towards entering into a detailed offtake agreement as the Denison Urea Project advances, the company said.
The LOI is a key step for Liberty as it develops its proposed world-class fertilizer facility in Queensland. It will assist Liberty in seeking the necessary government approvals and in negotiating project finance for the Denison Urea Project.
A number of conditions will need to be met in order to enter into a detailed offtake agreement: obtaining all required Australian government regulatory approvals; obtaining approvals from both the boards of Liberty and Marubeni; obtaining sufficient capital to fully finance the Denison Urea Project; and completion and commissioning of the project.
Liberty Resources is committed to developing its low-cost coal-to-urea project in Queensland.
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