Yara just has a few days left on Burrup decision

Oslo — Yara International ASA has through Jan. 31, 2012, to make a decision on whether or not to buy a 65 percent stake in Burrup Holdings Ltd. in Australia. As the 35 percent minority partner, Yara has the option to match the bid put in by Burrup gas supplier Apache Corp., Houston. Apache put in the high bid – reportedly $560 million – for the 65 percent stake back in December (GM Jan. 2, 2012, Dec. 19, 2011). At the time, Apache announced that it would both acquire the 65 percent stake and proceed with the development of a technical ammonium nitrate (TAN) plant in the site, to be developed by a consortium including Burrup Holdings Ltd. Apache said it was also negotiating to sell most of its interest in the TAN project to Orica, an Australia-based global supplier of mining explosives. Apache has supplied gas to Burrup Fertilisers since the plant commenced production in 2006. With a production capacity of 760,000 mt/y, the plant is one of the world’s largest ammonia production facilities. Yara has long-term offtake rights. The Australian media last week reported that Yara and Apache were in negotiations about Yara possibly acquiring a majority stake 51-49 percent share of Burrup.