Orica Mining Services Portugal, part of Australian explosives manufacturing group Orica Ltd., and Saudi Chemical Holding Co. have signed a nonbinding Memorandum of Understanding (MOU) for technical cooperation to localize the production of ammonium nitrate (AN) and nitric acid, the Saudi financial news portal Argaam reported on Jan. 15.
Under the MOU, a project to localize the AN and nitric acid industry will be set up.
The partnership also includes the introduction of technologies in the mining industry that will improve safety, productivity, and ESG standards, and is aimed at supporting industries related to mining and exploration, construction and infrastructure, as well as the cement industry, in line with the objectives of Saudi Arabia’s “Vision 2030.”
The MOU was signed by Saudi Chemical Holding Co. subsidiary Saudi Chemical Co., and is valid for six months.
Last November, rival Australian explosives and fertilizer manufacturer, Incitec Pivot Ltd. (IPL), signed a joint venture agreement with Saudi firm Modern Chemicals Co. (MCC) to develop a Technical Ammonium Nitrate (TAN) Plant in Ras Al Khair Industrial City, in Saudi Arabia’s Eastern Province (GM Nov. 18, 2022; Nov. 4, 2022).
Riyadh-based MCC is developing a 300,000 mt/y TAN production plant in Ras Al Khair Industrial City. It will be the first TAN plant in the Kingdom, and output will be targeted to the Saudi Arabian and regional mining sectors.