A new explosives manufacturing plant in the Burrup Peninsula has been given the green light.
Burrup Nitrates will begin construction of the $US 700 million plant which can produce around 330 000 tonnes of technical ammonium nitrate (TAN) every year, according to The West.
The plant is being built to support the booming Pilbara iron ore mining sector.
TAN is the main raw material for ANFO (ammonium nitrate fuel oil), which is the most widely used blasting product on the market.
Burrup Nitrates is a joint venture operation between Yara International, which will own 67.5% and Burrup Holdings who will own the remaining stake.
The plant is scheduled to commence operations by the last quarter of 2013 and will be located next to Burrup Holdings existing fertiliser plant, and will use the ammonia from its operations as TAN feedstock.
Image: Yara’s 100 kt/y TAN plant in Germany