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 



Your Comments (Up to 2000 characters)
Please respect our community and the integrity of its participants. WOC reserves the right to moderate and approve your comment.

Related News

Syngenta to invest $500 million in Africa

ZURICH, SWITZERLAND: Syngenta, the world’s largest agrochemicals company, plans to invest $500 million in Africa, with a goal of building a busi ...

Read more
EPA held P3 competition, grants more than $1 million

WASHINGTON DC, US: The EPA held its People, Prosperity and the Planet (P3) competition between more than 45 university teams. 15 winners were named an ...

Read more
Nufarm changes European management structure

VICTORIA, AUSTRALIA: Nufarm Limited has changed its European management structure, with the appointment of a new head of European operations. Hugo Sch ...

Read more
Okokrim charges two Yara management members

OSLO, NORWAY: The Norwegian National Authority for Investigation and Prosecution of Economic and Environmental Crime (Okokrim) has charged two members ...

Read more
DSM acquires Ocean Nutrition Canada for $534 million

SITTARD, THE NETHERLANDS: Royal DSM has entered into a definitive agreement with Clearwater Fine Foods and funds managed by Richardson Capital to acqu ...

Read more
Enterprise, Enbridge complete Seaway crude oil pipeline modifications

HOUSTON, US/CALGARY, CANADA: Enterprise Product Partners and Enbridge Inc have completed the modifications of the Seaway crude oil pipeline allowing i ...

Read more
www.worldofchemicals.com uses cookies to ensure that we give you the best experience on our website. By using this site, you agree to our Privacy Policy and our Terms of Use. X