The Western Australian Government has welcomed news that Yara Pilbara Nitrates has reached a project start-up date for its new technical ammonium nitrate (TAN) plant in the Pilbara region.

 

State Mines and Petroleum Minister Norman Moore attended the unveiling of the project’s plan, which is a joint venture between Yara, Orica and Apache with an estimated cost of more than $775 million.

 

The Yara Pilbara Nitrates plant will be located adjacent to the existing Yara Pilbara Fertilisers plant on a separate 75ha lease within the Burrup Industrial Estate. It has an expected lifespan of more than 20 years.

 

“This project is a high value-adding investment, taking offshore gas that has been converted into ammonia and manufacturing into TAN,” the Minister said.

 

“Apache supplies natural gas to Yara Pilbara Fertilisers Pty Ltd from the Harriet gas field off Western Australia’s coast and the existing facility will, in turn, supply ammonium feedstock to the TAN plant. This will result in the diversification of WA industry and a significant downstream processing synergy for the State.”

 

Construction is expected to start in March 2013, with commissioning of the plant expected in 2015.

 

Mr Moore said the location of the two plants next to each other would enable the sharing of many services and utilities.

 

“In addition to ammonia, the existing Yara Pilbara Fertilisers plant will also supply power as well as some additional utilities to the nitrates plant. The construction workforce of up to 400 people will use existing facilities in Karratha and, on completion, an operating workforce of about 60 full-time personnel will live locally,” he said.

 

The project will produce an estimated 330,000 tonnes of TAN a year, which is used to create ANFO (porous ammonium nitrate and fuel oil), widely used by the mining industry.