Explosives manufacturer Orica is reportedly planning to build a new ammonium nitrate emulsion plant in the Bowen Basin, east of Dingo.
The plant would be the second in the region, and would supplement the company's existing Gladstone ammonium nitrate manufacturing operations, according to the Daily Mercury.
Speaking to Orica, they told Australian Mining that it has already put forward a proposal to the regional council for the emulsion plant.
The proposal includes an accommodation village as well.
Its Gladstone plant was recently hit with a fine of $432 000 after pleading guilty to charges of unauthorised water releases from the facility; the effulent releases reportedly contained cyanide.
Addressing environmental concerns at its new facility, the spokesperson explained that "the blending and storage processes proposed for the site produce no waste. Orica will use the first flush system to collect rainwater that falls on the site for use in the proposed facility."
He went on to state that there had been a significant amount of work to conduct a "thorough environmental assessment of the project".
The Australian explosives manufacturing sector has seen a slowing down in demand across mining as the boom declines, with companies such as Incitec Pivot putting planned ammonium nitrate plants on hold for the foreseeable future.