Oslo (2011-03-23): Yara International ASA has signed a Letter of Intent (LoI) for the construction of a 330,000 ton p.a. technical ammonium nitrate (TAN) plant at Burrup, Australia. The total cost of the project is estimated at approximately USD 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 USD 500 million. The LoI has been approved by the board of Yara International ASA and is subject to the approval of the board of Burrup Holdings Pty Ltd. Total projects costs are estimated at approximately USD 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% ownership in Burrup Holdings Pty Ltd, Yara will own 67.5% directly and indirectly of Burrup Nitrates.
The plant will be built adjacent to the Burrup Holdings Pty Ltd ammonia facility. 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. The plant's close proximity to the Pilbara region together with adjacent ammonia supply gives it a distinct advantage over other Australian ammonium nitrate suppliers. Yara has an agreement to market the entire output from the plant.
Técnicas Reunidas is one of the leading international engineering and construction companies, and provides engineering, procurement and construction of industrial and power generation plants, particularly in the oil and gas production, refining and petrochemicals sector. The company has recently successfully completed a similar plant in capacity and size in Chile.
Torgeir Kvidal, Investor Relations
Telephone (+47) 24 15 72 95
Cellular (+47) 91 339 832
Asle Skredderberget, Media Relations
Cellular (+47) 41 44 36 10
Yara International ASA is the world's leading chemical company that converts energy, natural minerals and nitrogen from the air into essential products for farmers and industrial customers. As the number one global supplier of mineral fertilizers, we help provide food for a growing world population. Our industrial product portfolio includes environmental protection agents that prevent air pollution. Yara's global workforce of 7,600 employees represents the great diversity and knowledge that enables Yara to remain a leading performer in the industry.
This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.