Incitec Pivot Limited Signs JV with Modern Chemicals Company
JOINT MEDIA RELEASE
Incitec Pivot Limited (IPL) today announced it has signed a joint venture (JV) 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.
IPL Managing Director & CEO, Jeanne Johns said: “I am pleased to work with MCC on this truly exciting opportunity to pursue and enhance IPL’s advantage supply position. This project has the potential to greatly extend IPL’s global reach and is in support of our strategic agenda for the EMEA region.”
MCC’s CEO, Mr. 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 Limited’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.
We continue to thank His Excellency the Minister of Industry and Mineral Resources, H.E. Mr. Bandar AL Khorayef, other high-ranking officials from the ministry and its affiliate organizations for their continued support and assistance in advancing the project to this important milestone.”
About Incitec Pivot Limited
An Australian listed ASX 100 Company, IPL had its origins in Europe and North America in the 19th century and Australia early last century. It is now a global leader in the resources and agricultural sectors with an unrelenting focus on Zero Harm. With a diverse leadership, we add value for our customers through manufacturing excellence, leading technology solutions, innovation and world class services focused on our customers.
Through Dyno Nobel, we play a critical role in releasing the worlds natural resources, so we can build infrastructure and generate the energy we need to live in a modern world today. And with population growth, through Incitec Pivot Fertilisers’ 100-year heritage in Australian agriculture, we play an important role in enabling sustainable food production to meet the rapidly rising demand for food around the world.
About Dyno Nobel (a business of Incitec Pivot Limited):
Dyno Nobel is a subsidiary of Incitec Pivot Limited ABN 42 004 080 264 (ASX:IPL). Dyno Nobel has customers in the mining, quarry, construction, pipeline and geophysical exploration industries.
The company operates in Australia, Canada, the United States, France, Africa, Indonesia, Mexico, South America, Papua New Guinea and Turkey. Dyno Nobel manufactures a full line of commercial explosives, including ammonium nitrate, bulk explosives, packaged emulsions, dynamite, detonators (electric, nonelectric and electronic), cast boosters, and detonating cord, as well as surface and underground loading systems and Portable Modular Emulsion Plants. The company also offers services, including blast design, shot loading, shot service, vibration control, airblast, flyrock and NOx reduction, through DynoConsult, a specialist consulting division of Dyno Nobel. Please visit www.dynonobel.com for more information.
About Modern Industrial Investment Holding Group
The Modern Group of companies includes Modern Industrial Investment Holding (“Modern Holding”), Modern Chemicals, Modern Steel, Modern Mining, and Modern Healthcare Solutions. The Modern Group is a diversified industrial company based in Riyadh, Saudi Arabia, with principal businesses in various sectors such as petrochemicals, mining, steel, aluminum, and healthcare. Companies under the Modern Group are all privately held and are in joint venture with publicly listed best-in-class international market leaders. The Modern Group works closely with its partners, frequently transcending sectoral and geographical boundaries. Modern’s goal is to partner with global industry leaders in different sectors thus striving to provide world-class products and services to its local and international customers. Industrial projects are developed in partnership with leading international technical players, while Modern provides critical business success factors like competitive financing, infrastructure, and local/regional business knowledge. For more information, visit: http://www.moderngroup-sa.com/
Abdulaziz Al Hamwah, Vice Chairman & CEO - Modern Chemicals Company and Greg Hayne, President - Dyno Nobel Asia Pacific
The participants of the signing ceremony are as follows (from right to left):
1. James Sullivan, Vice President - Global Strategy for Explosives/AN, Dyno Nobel
2. Eng. Suliman Bin Khaled Almazroua, Chief Executive Officer, National Industrial Development and Logistics Program (NIDLP)
3. HE Khalid Saleh Al-Mudaifer, Vice Minister for Mining Affairs, Ministry of Industry and Mineral Resources, Kingdom of Saudi Arabia
4. Greg Hayne, President - Dyno Nobel Asia Pacific
5. HE Bandar bin Ibrahim AlKhorayef, Minister, Ministry of Industry and Mineral Resources, Kingdom of Saudi Arabia
6. Abdulaziz Al Hamwah, Vice Chairman & CEO - Modern Chemicals Company
7. Musad AlDaood, Deputy Minister for Mining Development, Ministry of Industry and Mineral Resources, Kingdom of Saudi Arabia
8. Dr. Yousef A. AlOlayan, Assistant Deputy of Manufacturing Sectors, Ministry of Investment, Kingdom of Saudi Arabia
9. Robert Rounsley, Chief Technology Officer - Dyno Nobel
10. Abdulkadir Farah, Senior Vice President, Business Development - Modern Chemicals Company
For more information:
Media
Incitec Pivot Limited
Matthew Flugge
Group Vice President Corporate Affairs
Mobile: +61 409 705 176 matthew.flugge@incitecpivot.com.au
Modern Chemicals Company
Abdulkadir Farah
Senior Vice President
Mobile: +966 1 419 0627
Abdulkadir.farah@moderngroup-sa.com