CSBP has received approval from the Wesfarmers board to commence the expansion of its $550m ammonium nitrate project at the company's Kwinana industrial complex, located 40km away from Perth, Western Australia.
Work on the project will include building a nitric acid plant and ammonium nitrate plant, upgrading the existing prilling plant and other infrastructure work.
The project will leverage ammonium nitrate production capacity by approximately 260,000 tons a year.
Clough/Downer EDI equal joint venture was awarded a $200m plus engineering, procurement and construction contract to carry out the project.
Wesfarmers chief executive Richard Goyder said that the project would help CSBP to meet both current and forecast demand for explosive-grade ammonium nitrate from the state's growing mining sector.
"Given production capacity will exceed demand until approximately 2020, our ability to divert surplus ammonium nitrate into CSBP fertiliser products should allow us to maximise production in the early years,'' said Goyder.
CSBP is engaged in agricultural fertilisers, ammonia, ammonium nitrate, sodium cyanide and other industrial chemicals business.
The company manufactures and supplies chemicals, fertilisers and other related services to the mining, minerals processing, industrial and agricultural sectors.
CSBP subsidiaries Australian Vinyls and ModWood manufacture and supply polyvinyl chloride resins and wood-plastic composite products.
