Incitec Pivot has progressed at its Moranbah ammonium nitrate complex, producing its first ammonia.
It initially announced first production of ammonium nitrate in July, however it was forced to import ammonia.
Since that time the commissioning of the plant has been completed and ammonia production has now commenced.
The site is now on track to produce around 250 000 tonnes of ammonium nitrate in its 2012/13 financial year, rising to 330 000 tonnes of AN the following financial year.
While its Queensland operations are growing, Incitec Pivot recently deferred the development of its new ammonium nitrate plant in Newcastle.
Earlier this week it said it will defer the proposed plant on Kooragang Island, near Orica's existing plant, for at least two years.
It stated that "the decision on whether to proceed with the development has been deferred for at least two years, reflecting the anticipated reduction in demand for ammonium nitrate and the high cost of construction in Australia.
At this time "the project has not met Incitec's financial hurdles.