Australia backs $2.9 bln urea plant with low-cost finance

MELBOURNE, Sept 30 (Reuters) – The Australian authorities has agreed to supply a low-cost mortgage of A$220 million ($143 million) to privately owned Perdaman to construct a A$4.5 billion urea plant in Western Australia, the nation’s sources minister mentioned on Friday.

Perdaman plans to construct a 2-million-tonnes-a-year urea plant, aiming to export about half the output to the Asia-Pacific area, Brazil and america, whereas the remainder will assist minimize Australia’s dependence on fertiliser imports, the federal government mentioned.

The federal government mortgage will come from the Northern Australia Infrastructure Facility and provides to A$255 million in two earlier loans backing infrastructure to service the urea challenge.

“This challenge will probably be transformational for Western Australia … and safe native farmers’ entry to fertiliser that’s important to making sure meals safety,” Minister for Sources and Northern Australia Madeleine King mentioned in an announcement saying the mortgage.

Perdaman has lined up a contract to purchase fuel from Woodside Power Group’s (WDS.AX) Scarborough challenge as feedstock for the urea manufacturing.

The challenge is being constructed on the Burrup Peninsula, the place an indigenous group has raised issues in regards to the impression emissions from the plant might have on historical indigenous rock artwork.

Surroundings Minister Tanya Plibersek in August rejected a request from two indigenous girls to dam Perdaman from beginning building on the urea plant, nonetheless earlier this month she launched a overview of the impression of trade on the traditional rock artwork on the Burrup Peninsula.

That overview should provide you with suggestions on whether or not to order new safety for indigenous heritage on the peninsula. There is no such thing as a deadline for that overview.

King mentioned on Friday Perdaman’s challenge has been designed utilizing the “greatest obtainable expertise to minimise emissions” together with utilizing solar energy.

($1 = 1.5399 Australian {dollars})

Reporting by Sonali Paul; Modifying by Christian Schmollinger

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