Yara, Orica Apache JV invest $800 million in TAN plant

Yara, Orica and Apache JV invest $800 million in TAN plant

6:47 AM, 21st May 2012
Yara, Orica and Apache JV invest $800 million in TAN plant
Ian Smith, Managing Director and CEO, Orica.

OSLO, NORWAY: Yara has agreed with Orica and Apache to form joint ventures to build a 330,000 metric tonne ammonium nitrate (TAN) plant on the Burrup peninsula and distribute ammonium nitrate and other explosives products to mining customers in the Pilbara region. The joint venture will be owned 45 per cent by Yara, 45 per cent by Orica and 10 per cent by Apache.

Construction of the plant is expected to have a capital cost of approximately $800 million excluding capitalized interest, and be completed by the end of 2015. Tecnicas Reunidas will be appointed as the engineering, procurement and construction contractor under a fixed price, turnkey contract. Yara will manage construction and ongoing operation of the ammonium nitrate plant.

The 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. This joint venture will be owned in the same proportions as the ammonium nitrate plant joint venture, but will be managed by Orica. Upon commencement of construction, Orica will pay approximately $110 million for the 45 per cent stake, to be split between Yara and Apache.

“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,” said Ian Smith, Managing Director and CEO, Orica.

© WOC News 

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