05/31/2012 | Editor: Marcel Dröttboom
Yara has agreed with Orica and Apache to form joint ventures to build a 330,000 metric tonnes ammonium nitrate (TAN) plant on the Burrup peninsula and distribute ammonium nitrate and other explosives products to mining customers in the Pilbara region.
Oslo, Norway – 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 USD 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 approx. USD 110 million for the 45 per cent stake, to be split between Yara and Apache.
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