Burrup Fertilisers’ Pankaj Oswal says he will block Yara International’s planned explosives plant on Western Australia’s Burrup Peninsula.
The technical ammonia nitrates (TAN) plant is a joint venture between the two fertiliser manufacturers.
Oswal claims that the joint venture between Yara and Burrup is unfavourable to everyone except Yara, the West Australian reports.
He stated that the terms were designed to make his share in Burrup Holdings unattractive, and that he was forced by Yara and the receivers to agree to the JV and began building the TAN plant next to Burrup’s existing ammonia hydrate plant.
“Yara has attempted to railroad me into agreeing to commence the development of the TAN plant immediately on terms proposed by Yara without consultation with me and based on inaccurate, out-of-date and inadequate information," he said.
"I am especially disappointed because I have made plain my view that Yara is seeking to lock the Burrup TAN plant in on its terms in order to make my BHL shares less attractive to other buyers."
According to the West, he declined to add further detail as to why he will not move forward on the plant’s construction.
The US $ 700 million TAN explosives manufacturing plant was originally given the go-ahead in March, and was scheduled to being operations in the last quarter of 2013.