Orica Ltd. said June 21 that it intends to expand ammonium nitrate production capacity at its Kooragang Island plant in New South Wales, Australia, by 320,000 mt/y, to a total of 750,000 mt/y. The board of directors has approved A$75 million to progress engineering planning and to secure long lead items. The company says statutory approval has been granted by the New South Wales government.
Orica says the expansion complements its existing market position and supports the expected growth in mining in Southeast Australia, where demand for ammonium nitrate is forecast to grow at an average annual rate of at least 8 percent.
The preliminary cost estimate for the expansion is in the range of $600 to $750 million. It is expected that commissioning would occur in 2014-2015.
In other news, Orica said it has agreed to acquire the explosives businesses of Black Explosives, its long-term distributor and joint venture partner in Western Canada, which is also its distributor in Alaska and Colorado. Further details were not immediately available. Orica said the terms are subject to confidentiality agreements.