The Downer Clough joint venture has won a $200 million engineering, procurement and construction (EPC) contract with Wesfarmers subsidiary CSBP, which today announced the formal go-ahead for a $550 million expansion of its ammonium nitrate facility at Kwinana.
The project involves the construction of an additional nitric acid plant and ammonium nitrate plant, together with an upgrade of the existing infrastructure at the Kwinana site, and will deliver an additional 260,000 tonnes per annum of ammonium nitrate.
This contract award comes after Downer Clough successfully completed the early contractor involvement phase of the project.
The joint venture is a 50:50 agreement between engineering and construction company Clough and engineering and infrastructure management services group Downer EDI.
The contract scope involves project management, engineering, procurement, prefabrication, construction and pre-commissioning of the plants, and will commence immediately.
The project is expected to be completed in the first half of 2014, employing 210 people at peak.
Wesfarmers managing director Richard Goyder said Wesfarmers had negotiated offtake agreements covering the majority of the additional production capacity and would now move to execute those agreements.
"This expansion will bring CSBP's ammonium nitrate production capacity to 780,000 tonnes per annum, enabling us to meet both current and forecast demand for explosive-grade ammonium nitrate from the growing Western Australian mining sector."
Clough CEO Kevin Gallagher said he was delighted to continue the company’s relationship with CSBP on the project.
“The early investment in the relationship between client and contractor will assist in assuring flawless project execution,” he said.
