Yara International will construct a technical ammonium nitrate (TAN) plant on the Burrup Peninsula in Western Australia for Técnicas Reunidas for about $500m.

The contract will be transferred to Burrup Nitrates, a joint venture between Yara International and Burrup Holdings, once it receives the board of Burrup Holdings approval.

The new plant will be built next to the Burrup Holdings’ ammonia facility and will facilitate it to maximise synergies from competitive feedstock and utilities supplies.

The plant will be close to the Pilbara region of Australia and would primarily supply the fast-growing iron ore mining operations in the region.