CSBP Managing Director Ian Hansen said the study would provide a detailed assessment of the construction of an additional nitric acid plant and ammonium nitrate plant, and an upgrade of the existing prilling plant at the company’s Kwinana site.

Mr Hansen said that increased ammonium nitrate production was needed to meet forecast demand for explosive-grade ammonium nitrate from the Western Australian iron ore mining sector.

“As the major supplier of ammonium nitrate to the State’s explosive market, we are responding to increasing demand for this product,” Mr Hansen said.

“The project is anticipated to deliver an additional 260,000 tonnes per annum (tpa) of ammonium nitrate production capacity.

“This would complement our existing ammonium nitrate production facility and increase our overall production capacity to 780,000 tpa.”

Mr Hansen said that the FEED study would start next month and be completed towards the end of next year.

“Regulatory approvals will be sought as part of the study to allow construction to commence immediately should the project receive Wesfarmers Board approval,” Mr Hansen said.

While the FEED study will provide more precise project costs, initial estimates price the expansion at between $450 and $500 million.

CSBP completed a duplication of its Kwinana ammonium nitrate production facility last year, doubling the company’s ammonium nitrate production capacity.

Ammonium nitrate is used as a key input into explosives for the mining sector and is also a feedstock for CSBP’s highly successful liquid fertiliser, Flexi-N.

CSBP is part of the Chemicals and Fertilisers division of Wesfarmers Limited and is a major manufacturer and supplier of chemicals, fertilisers and related services to the mining, agricultural and industrial sectors.