Incitec Pivot's Mount Isa plant suffers sulphuric acid outage

12 November 2012 11:19  [Source: ICIS news]

LONDON (ICIS)--Australian fertilizer producer Incitec Pivot Ltd (IPL) on Monday announced it has been forced to reduce production at its sulphuric acid plant at Mount Isa due to the "failure of a waste heat boiler" on Friday.

The Melbourne-headquartered company assessed the boiler over the weekend and expects repairs at the Queensland plant to take up to a month to complete – potentially costing IPL up to A$25m ($26m).

Sulphuric acid is an essential ingredient in the manufacture of ammonium phosphates and the boiler failure will also impact operations at its Phosphate Hill production facility about 100 miles (161km) away, IPL added in a short statement.

"The outage will reduce production of sulphuric acid from the Mount Isa plant, resulting in the ammonium phosphate plant at Phosphate Hill operating at reduced rates during this period," IPL explained.

"The estimated impact is a reduction in the expected production of ammonium phosphates at that plant for the financial year ended 30 September 2013, to 900,000 tonnes.

"If offline for a month, the financial implication of higher costs of sulphuric acid, repairs and under-absorption of fixed costs is estimated to be in the region of A$25m before tax."

With production facilities in Australia, USA, Canada, Turkey, Mexico, Chile and Indonesia, IPL produces, markets and distributes industrial explosives, fertilizers and related products.

(A$1 = $1.04)


By: Richard Ewing
+44 208 652 3214



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