Explosives maker Orica Limited (ASX:ORI) has partnered with worldwide chemical company Yara and Apache to build an ammonium nitrate plant in the Pilbarra region.
The new facility is expected to generate 330,000 tonnes of the chemical.
The construction is estimated to cost about $US800 million with both parties sharing in the costs.
The joint venture will also see the partners distribute all chemical products to mining customers in the region.
The construction is set to be completed by 2015.
Orica’s managing director and CEO says together with its partners, it has a clear vision for servicing the fast growing Pilbara iron ore market.
Orica generated a net profit of $263.4 million in the first half of the 2012 financial year.
ORI Price at posting:
$25.14 Sentiment: None Disclosure: Held
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