Nitrates project milestone
Oslo, November 20, 2012
A new plant with planned capacity of 330,000 tons of ammonium nitrate in Western Australia celebrated the beginning of site preparation in mid-November. The Yara Pilbara Nitrates facility is being developed as a joint venture by Yara, Orica and Apache.
Norman Moore (left), Minister of Mines and Petroleum, Fisheries and Electoral Affairs, and Mark Loquan unveil the sign signifying start of work on a new TAN facility.
"Detailed design of the plant is now well advanced, long lead items have been ordered and construction is scheduled to begin in March next year," says Mark Loquan, who is CEO of Yara Pilbara Nitrates as well as CEO of Yara Pilbara Fertilisers.
Western Australia's Minister for Mines and Petroleum, Norman Moore, attended to unveil the new sign for the site. The event marking the start of site preparation works received thorough media coverage.
"In an environment where several large projects have been halted or delayed, this is indeed a good sign and vote of confidence for the long-term Western Australian economy," Mark adds. "It was also very good to have the CEO of Orica Mining Services Pilbara at the event, demonstrating a solid partnership from the first day."
"This project gives a very positive sign of growth at the site, and represents a major milestone for the Pilbara region and Western Australia, and for Yara and its partners. The project will create up to 400 jobs during peak construction and employment for 60 people to operate the plant," Mark says.
First production scheduled for July 2015
Fencing around the site perimeter has now begun and civil works will commence in April 2013. Mechanical completion has a target date of April 2015, with first production scheduled for July 2015.
Yara is managing the project development and will be the plant operator upon completion. In May this year Spanish company Técnicas Reunidas was appointed the engineering, procurement and construction contractor.
The new facility will stand next to Yara Pilbara Fertiliser's existing ammonia plant, which will provide the feedstock for production of technical ammonium nitrate (TAN), which is in demand for use in explosives in the region's iron ore industry.
"This allows us to add further value to the existing downstream process with a portion of the existing ammonia product being utilized to produce TAN for the local mining sector from 2015," Mark says.
Yara became the majority shareholder of Burrup Fertilisers in the beginning of this year, changing the name of that company to Yara Pilbara Fertilisers.