Wesfamers subsidiary CSBP and joint venture partner Dyno Nobel have elected not to proceed with the construction of an additional 250,000 tonnes per annum ammonium nitrate plant following conducting a feasibility study.
Wesfamers subsidiary CSBP and joint venture partner Dyno Nobel have elected not to proceed with the construction of an additional 250,000 tonnes per annum ammonium nitrate plant following conducting a feasibility study.
The plant was to be constructed at the existing Queensland Nitrates ammonium nitrate production facility at Moura in Queensland.
At 1110 WST, Wesfarmers' shares were down 23 cents to $36.14.
Below is the full announcement:
Wesfarmers Limited subsidiary CSBP Limited, together with its joint venture partner Dyno Nobel, has conducted a feasibility study into the construction of an additional 250,000 tonnes per annum ammonium nitrate plant at the existing Queensland Nitrates ("QNP") ammonium nitrate production facility at Moura in Queensland.
Indications from construction consortia on the potential cost of the expansion have now been received. As with many capital projects in the current climate, strong demand for labour and high prices associated with steel and other inputs has resulted in a significant escalation of the likely capital cost over the course of the study.
CSBP and Dyno Nobel have elected not to proceed with the expansion in its current form. QNP continues to enjoy the support of key customers in the Queensland market.
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