Yara signs LoI for construction of Burrup TAN plant

Wednesday, 23. March 2011 08:01
Oslo (2011-03-23): Yara International ASA has signed a Letter of Intent (LoI)
for the construction of a 330,000 ton p.a. technical ammonium nitrate (TAN)
plant at Burrup, Australia. The total cost of the project is estimated at
approximately USD 700 million.

Yara International ASA has signed a LoI with Técnicas Reunidas for the
construction of a TAN plant on the Burrup Peninsula in Western Australia. The
contract will be on a lump sum turnkey basis with an approximate value of USD
500 million. The LoI has been approved by the board of Yara International ASA
and is subject to the approval of the board of Burrup Holdings Pty Ltd. Total
projects costs are estimated at approximately USD 700 million.

The construction contract will after board approval by Burrup Holdings Pty Ltd
be transferred to Burrup Nitrates, a planned 50/50 joint venture between Yara
International ASA and Burrup Holdings Pty Ltd. As Yara has a 35% ownership in
Burrup Holdings Pty Ltd, Yara will own 67.5% directly and indirectly of Burrup
Nitrates.

The plant will be built adjacent to the Burrup Holdings Pty Ltd ammonia
facility. The location of the new TAN plant will enable it to maximize synergies
from competitive feedstock and utilities supplies.

The TAN plant would primarily supply the fast-growing iron ore mining operations
in the Pilbara region of Australia. The plant's close proximity to the Pilbara
region together with adjacent ammonia supply gives it a distinct advantage over
other Australian ammonium nitrate suppliers. Yara has an agreement to market the
entire output from the plant.

Técnicas Reunidas is one of the leading international engineering and
construction companies, and provides engineering, procurement and construction
of industrial and power generation plants, particularly in the oil and gas
production, refining and petrochemicals sector. The company has recently
successfully completed a similar plant in capacity and size in Chile.


Contact

Torgeir Kvidal, Investor Relations
Telephone  (+47) 24 15 72 95
Cellular (+47) 91 339 832
E-mailtorgeir.kvidal@yara.com

Asle Skredderberget, Media Relations
Cellular (+47) 41 44 36 10
E-mailasle.skredderberget@yara.com


Yara International ASA is the world's leading chemical company that converts
energy, natural minerals and nitrogen from the air into essential products for
farmers and industrial customers. As the number one global supplier of mineral
fertilizers, we help provide food for a growing world population. Our industrial
product portfolio includes environmental protection agents that prevent air
pollution. Yara's global workforce of 7,600 employees represents the great
diversity and knowledge that enables Yara to remain a leading performer in the
industry.
www.yara.com

This information is subject of the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.






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Source: Yara International ASA via Thomson Reuters ONE

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Related Links: Yara International ASA
Author:
Hugin
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