Engineering Incitec Pivot, MCC to Develop Technical Ammonium Nitrate Plant in Saudi Arabia

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Under a joint venture agreement, Incitec Pivot and Modern Chemicals Company (MCC) will combine their respective capabilities, resources, and assets to develop, finance, construct, and operate a world class Technical Ammonium Nitrate plant in Saudi Arabia.

Southbank/Australia – Incitec Pivot has signed a joint venture agreement with Modern Chemicals Company (MCC) to develop a Technical Ammonium Nitrate (Tan) Plant in the Middle East. MCC is developing a 300,000 MTPA technical-grade ammonium nitrate production plant in Ras Al Khair industrial City, Eastern Province of the Kingdom of Saudi Araba (KSA). The facility is the first in the kingdom. IPL has been in discussions with MCC management since 2020 to participate in the project. The parties entered a memorandum of understanding in early 2022 and have been jointly undertaking feasibility works for several months, including significantly advancing an ongoing Front-end engineering and design (Feed) activities with Thyssenkrupp.

The JV formation will expedite key project development processes, through the completion of the Feed and a definitive bankable feasibility study sufficient for financing institutions like the Saudi Industrial Development Fund and other stakeholders. The respective capabilities, resources, and assets of the two companies would be combined to develop, finance, construct, and operate a world class Tan facility that provides a strategic product that is critical to the development of the KSA and regional mining sector.

MCC’s CEO, Abdulaziz F. Al Hamwah commented, “Modern is excited to commence this strategic project for the Saudi mining sector which is critical to meeting national economic diversification initiatives under Vision 2030. In order to unlock and enhance the mining value-chain, the country requires a high-quality mining services and industrial explosives industry that is fully integrated to available upstream petrochemicals like ammonia feedstocks. Tan and related derivative explosives are essential for surface and underground mining, civil tunneling, quarrying, and general construction. This also represents an opportunity for Modern to vertically integrate upstream by localizing currently imported Tan to support our existing mining services business.

We are excited and confident of Incitec Pivot’s industry leading business, Dyno Nobel’s involvement in this project given their capabilities and technological know-how in operating Tan plants globally. This synergy between our companies will be able to contribute in closing some of the gaps in the growing mining sector of Saudi.”

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