Incitec Pivot Limited (IPL), Southbank, Victoria, has announced it has signed a joint venture agreement with Saudi Arabian firm Modern Chemicals Co. (MCC) to develop a Technical Ammonium Nitrate (TAN) Plant in the Middle East.
Riyadh-based MCC is developing a 300,000 mt/y TAN production plant in Ras Al Khair Industrial City, in Saudi Arabia’s Eastern Province.
IPL said it has been in discussions with MCC management since 2020 to participate in the project, and the two parties entered into a Memorandum of Understanding (MOU) in early 2022.
Since then they have been jointly undertaking feasibility works for several months, including “significantly” advancing ongoing Front-End Engineering and Design (FEED) activities with German firm Thyssenkrupp.
The TAN plant will be the first in the kingdom.
“The jv formation will expedite key project development processes, through the completion of the FEED and a definitive bankable feasibility study sufficient for financing institutions like the Saudi Industrial Development Fund and other stakeholders,” IPL said.
The TAN output will be targeted to the Saudi Arabian and regional mining sectors.