12 February 2013 11:26 [Source: ICIS news]
LONDON (ICIS)--Construction of a new 330,000 tonne/year ammonium nitrate (AN) plant on Australia’s Burrup Peninsula should be completed by the end of 2015, joint venture partner Yara International announced on Tuesday.
In a note accompanying its fourth-quarter results, the Norwegian fertilizer giant said the facility – which will supply mining firms with the explosive material – is expected to have a capital cost of $800m (€600m) and that Madrid-based Tecnicas Reunidas will be appointed as the engineering, procurement and construction contractor "under a fixed price, turnkey contract".Yara and Australian mining services company Orica each hold a 45% stake in the joint venture, with US-based energy firm Apache holding the remaining 10%.
Yara, which will manage construction and on-going operation of the ammonium nitrate plant, added that during the fourth quarter of 2012, Orica paid Yara and Apache about $110m for the 45% stake in the joint venture, "mainly through capital injection to the company".
"The [three] parties have also agreed to form a distribution and marketing joint venture to distribute all ammonium nitrate and associated products and services to mining customers in the Pilbara region," Yara added.
"This joint venture will be owned in the same proportions as the ammonium nitrate plant joint venture, but will be managed by Orica."
Yara did not disclose when construction of the AN plant started, but said in March last year that work was expected to start in mid-2012.
($1 = €0.75)
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