South Korea's Samsung Corporation has agreed to invest $40 million to take a small direct interest in Perdaman Chemicals & Fertilisers' $3.5 billion Collie urea project.
South Korea's Samsung Corporation has agreed to invest $40 million to take a small direct interest in Perdaman Chemicals & Fertilisers' $3.5 billion Collie urea project.
The deal was announced at an official signing ceremony in Perth today, where Regional Development Minister Brendon Grylls said it is the first major investment in downstream processing by a Korean company since the North West Shelf operation.
Samsung has agreed to buy a 2 per cent interest in the project, which is expected to create over 1,500 jobs in its construction and operation phase.
Earlier this year, Samsung secured the engineering, procurement and construction contract for the coal-to-gas urea project, in a joint venture with Indonesia's Inti Karya Persada Tehnik.
Perdaman expects to achieve financial close on the project by mid-2010 and construction is due to begin by the end of that year.
Both announcements are below:
PERDAMAN
Perdaman Chemicals and Fertilisers (Perdaman) today announced that global Korean corporation Samsung has
agreed to invest approximately $40 million in its Collie Urea Project. The project is on track to obtain relevant
approvals by end of 2009 and is heading towards achieving financial close by mid next year.
In Perth this morning, the Executive Senior Vice-President of the Samsung C&T Corporation, Mr Chang Soo Kim,
and the Chairman and Managing Director of Perdaman Chemicals & Fertilisers, Mr Vikas Rambal, met with the
Leader of the National Party and Minister for Regional Development, The Hon Brendon Grylls MLA, to announce
this equity investment.
"This investment by Samsung C&T Corporation in a downstream processing project in W.A reinforces the
strength of the Perdaman Collie Urea Project and proves to the world that Western Australia is fast becoming a
downstream industrial hub. Investment in projects such as this helps to sustain industry and supports regional
development for the long term," The Hon Brendon Grylls said.
In 2006 Korea's total investment in Australia was approximately $50 million. The investment in the Collie Urea
Project by Samsung C&T Corporation is the single biggest investment by a Korean company in an Australian
downstream processing project.
"We are delighted to be the recipients of this major investment by one of the world's premier industrial
conglomerates. Samsung's participation is a public show of faith in our project and its viability and we are
pleased to have them as partners in our project," Mr. Rambal said.
"Our investment in the Collie Urea Project sends a strong message concerning our support for this project and
the opportunities it will offer the residents of Collie and the surrounding areas, and shows our commitment to
providing the way forward for future developments in Western Australia," Mr Chang Soo Kim said.
This investment by Samsung C&T Corporation is in addition to the recent announcement by Perdaman
Chemicals & Fertilisers one of the sister companies, Samsung Engineering, will undertake the lead Engineering,
Procurement and Construction (EPC) role for the Perdaman Collie Urea Project.
Perdaman plans to obtain the relevant approvals, construct and commence production at the Collie Urea Project
in the second half of 2013. At full production the plant is expected to generate $850 million per annum in export
earnings for Western Australia.
GOVERNMENT
The State Government has welcomed an announcement by Perdaman Chemicals and Fertilisers that the Samsung Corporation have become investors in their $3.5billion Coal to Gas Urea project in Collie.
Representing Premier Colin Barnett at an official announcement of the agreement the Regional Development Minister Brendon Grylls said the Government had a strong commitment to attracting new investment especially in advanced processing industry as a key part of its strategy for developing regional economies and communities.
"I congratulate Perdaman Chemicals and Fertilisers on their project and welcome the Samsung Corporation as investors in an industry that will open a new chapter in the economic development of Collie," Mr Grylls said.
"Not only will it provide an economic stimulus to the Collie region but the project will attract a construction workforce of some 1,500 people and approximately 200 permanent employees.
"Today's announcement sets another very exciting precedent as the first major investment in downstream processing by a Korean company since the North West Shelf LNG.
"The Western Australian Government has worked closely with Perdaman to secure this project, and in doing so, both the company and the State Government have set themselves challenging timelines."
Perdaman has scheduled its financial close mid-2010 with construction due to begin by the end of 2010 and the first shipment of urea in the third quarter of 2013.
When fully operational, each year the project will transform 2.7 million tonnes of bituminous Collie coal into over two million tonnes per annum of urea (fertiliser) primarily for export to India via the Bunbury Port.
Its economic impact includes:
- a construction workforce of 1,500 and approximately 200 permanent employees
- other jobs created in coal mining, rail transport, and at Bunbury Port and many others in support industries
- exports will exceed $850million per annum.
The project will also set many important precedents, including:
- Western Australia's first value adding to coal, other than electricity production
- Australia's first commercially sized coal gasification project and Australia's first exporter of urea
- as Australia's first commercial demonstration of low emission coal technology, the project will be carbon capture and storage ready.
The site of the Coal to Gas Urea Project is at the Shotts Industrial Park which is located 7km from Collie and is expected to be ready for development early in 2010.
