Dyno Nobel has sold its 769 000 tpy Phosphate Hill plant to Australian energy and resources firm Mayfair for AUS$1 (0.69¢), with support from federal and state government loans.
Phosphate Hill is Australia's only MAP/DAP production plant and has been faced with issues regarding sulfuric acid supply, as well as rail disruptions on the Mount Isa line, which transports product to the Port of Townsville, Queensland. The sale agreement was signed on 30 June.
Dyno Nobel has made clear its intention to divest from the fertilizer sector, with the plant facing ongoing operational and cost pressures.
The Australian federal and Queensland state governments have provided a AUS$160 million loan to support operations at Phosphate Hill, the Ministry for Industry and Innovation said. The loan will help Mayfair to upgrade the facility and includes assistance to manage higher sulfur costs following the US-Iran war.
Australia imports 99% of its sulfur from Canada, according to the Australian Bureau of Statistics (ABS). Argus Media assessed sulfur to be at CAN$1150/t fob Vancouver on 25 June, up by 136% from 26 February.
Production at Phosphate Hill fell by 9% on the year to 272 800 t in the financial half year to 31 March 2026. MAP/DAP exports from the Port of Townsville were flat on the year at 116 700 t in the same period, trade data from ABS show. Exports in January-April dropped by nearly 100% on the year to only 43 t.
Australian agribusiness Ridley held a supply agreement for all MAP/DAP output from Phosphate Hill through Incitec Pivot Fertilizers before the sale and plans to renegotiate this deal with Mayfair.
Original article written by Susannah Cornford for Argus Media.