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OSLO, NORWAY: Yara International ASA has signed a letter of intent (LoI) for the construction of a 330,000 ton pa technical ammonium nitrate (TAN) plant at Burrup, Australia. The total cost of the project is estimated at approximately $ 700 million.
Yara International ASA has signed a LoI with Técnicas Reunidas for the construction of a TAN plant on the Burrup Peninsula in Western Australia. The contract will be on a lump sum turnkey basis with an approximate value of $ 500 million, while total projects costs are estimated at approximately $ 700 million.
The construction contract will, after board approval by Burrup Holdings Pty Ltd, be transferred to Burrup Nitrates, a planned 50/50 joint venture between Yara International ASA and Burrup Holdings Pty Ltd. As Yara has a 35 per cent ownership in Burrup Holdings Pty Ltd, Yara will own 67.5 per cent directly and indirectly of Burrup Nitrates. The location of the new TAN plant will enable it to maximize synergies from competitive feedstock and utilities supplies.
The TAN plant would primarily supply the fast-growing iron ore mining operations in the Pilbara region of Australia. Yara has an agreement to market the entire output from the plant.
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