Oslo-Yara International ASA said Sept. 16 that it has agreed with Mr. Pankaj Oswal to purchase from him a 5 percent ownership in Burrup Holdings Ltd. (BHL) for US$141 million. After the transaction, Yara will own 35 percent of BHL and Oswal will own 65 percent. “The purchase increases Yara’s position in a low-cost gas area. It also strengthens Yara’s contractual rights to downstream upgrading and marketing from BHL in an interesting market for both our industrial and fertilizer products,” says Thorleif Enger, Yara president and CEO. “The purchase price by Yara illustrates the leading position that BHL holds in the global ammonia market and the value of the growth opportunities being executed by the company. This transaction provides a benchmark for the floor price and underpins the IPO valuation of the company,” said Oswal. The BHP ammonia plant, located at the Burrup Peninsula in Western Australia, has an annual production capacity of approximately 850,000 mt. Yara and BHL are also continuing progress on the ammonium nitrate expansion project adjacent to the existing ammonia plant.
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