Deepak Fert cancels $350 mn-plant plan in Australia

Firm cites several reasons for not proceeding with project following initial feasibility study for the 310-hectare site at Port Bonython

Indian fertilisers and petrochem firm Deepak Fertilisers and Petrochemicals Corporation Limited has abandoned plan to build a $350 million plant at Port Bonython, South Australian Mining minister Tom Koutsantonis has said.

Deepak Fertilisers has informed the state government of its intention not to go ahead with a proposed technical ammonium nitrate plant near Whyalla, said Koutsantonis, who also holds the Manufacturing, Innovation and Trade portfolio.

According to an official statement yesterday, Koutsantonis said DFPCL cited several reasons for the decision not to proceed with the project following its initial feasibility study for the 310 hectare site at Port Bonython.

Barriers to the proposed investment include the substantial costs involved in rehabilitating a former military testing ground, extending power and gas supplies to the site, the distance from the Port Bonython jetty and other additional capital expenditure required to prepare the site for construction, the statement said.

Koutsantonis said DFPCL also noted the announcement by BHP Billiton of a delay to the expansion of the Olympic Dam uranium-copper mine in its decision not to proceed with the ammonium nitrate plant.

"Deepak has informed the State Government of its intention to continue to explore other possible options for an ammonium nitrate plant in South Australia," he said.

"While the decision not to proceed with this proposed plant at Port Bonython is disappointing, we will continue to work with Deepak to explore other financially feasible options," the minister added.

He said the outlook for South Australia's mining industry remains favourable with 20 mines approved and a strong pipeline of projects in various stages of development.

Deepak Fertiliser's major concerns are site specific, he said.

"The Department for Manufacturing, Innovation, Trade, Resources and Energy will continue to work with the company to determine other options that can overcome the obstacles identified by the current feasibility study," he added.