Norway-based Yara International has signed a letter of intent (LoI) with Técnicas Reunidas to build a 330,000tpa ammonium nitrate (TAN) plant on the Burrup Peninsula in Western Australia.
The contract will be on a lump sum turnkey basis with an approximate cost of $500m.
The entire project will cost $700m and the plant will be constructed by Sanish company, Técnicas Reunidas.
The construction project will be a 50/50 joint venture between Yara International and Burrup Holdings, and will require approval by the Burrup Holdings board.
Taking into account Yara's 35% shareholding in Burrup Holdings, it will own 67.5% directly and indirectly of Burrup Nitrates.
The plant will be built alongside Burrup Holdings' existing ammonia plant and will primarily supply ammonium nitrate to iron ore mining operations in the Pilbara region of Australia.
