May 22, 2012

Norway's Yara, partners to construct fertiliser plant in Australia

A joint venture (JV) between Yara International ASA and two partners will be formed for the construction of a EUR626.5 million (US$800 million) technical ammonium nitrate (TAN) plant in the Pilbara region of north-western Australia, it said Monday (May 21).

The partners are Australian explosives and chemicals maker Orica Limited, which will own 45% of the JV, and US energy company Apache Corp, which will hold 10% in it. Yara, which will manage the construction and operation of the plant, will own the remaining 45%.

Spanish heavy construction group Tecnicas Reunidas will be appointed as engineering, procurement and construction contractor.

The plant, which will produce some 330,000 tonnes of TAN annually, is expected to be completed by the end of 2015.

The partners have also agreed to form a JV for the distribution and marketing of chemical products to mining customers in the region.