Dyno Nobel agrees to sell Phosphate Hill to Ryowa II GPS

With the sale of the Perdaman offtake agreement to Macquarie Group’s Commodities and Global Markets business completing as planned in 1Q26, this marks a significant strategic milestone for Dyno Nobel as a global pure play explosives business. The Dyno Nobel explosives business has also delivered a strong operating performance year to date and remains on track to achieve its earnings guidance for 2026.

Phosphate Hill sale highlights

• Dyno Nobel has entered into a binding agreement to sell Phosphate Hill to Mayfair, an experienced Australian operator.
• The transaction secures ongoing employment for Phosphate Hill’s ~540 employees and contractors, enabling continuity of operation for the North-West Queensland, Australia region.
• Dyno Nobel expects nominal NPV positive cashflows from the transaction, with Asset Retirement Obligations offsetting tax benefits.
• The transaction is expected to deliver a clean exit from Phosphate Hill, concludes the separation of fertilizers, and achieves Dyno Nobel’s strategic objective of transforming into a pure play global explosives leader.

Under the terms of the agreement:

• Purchase price: nominal consideration of US$1.
• Deferred consideration: of up to US$100 million is payable to Dyno Nobel, subject to certain conditions and meeting certain performance hurdles.
• Economic risk transfer: subject to completion occurring, Mayfair will assume the economic risk and benefit of Phosphate Hill from 1 April 2026, including all operating cashflows and capital expenditure requirements, including for the upcoming turnaround.
• Asset Retirement Obligation (ARO) funding: Dyno Nobel will provide US$125.9 million of funding to support the future rehabilitation and remediation of Phosphate Hill. This funding amount reflects the Estimated Remediation Cost (ERC) for Phosphate Hill, which is the basis for the historical provision on Dyno Nobel’s balance sheet.
• Inventory: Dyno Nobel will provide approximately US$80 million of inventory at completion to support the continuity of operations.
• Liabilities: Mayfair will assume responsibility for all operational and environmental liabilities associated with Phosphate Hill from completion, providing Dyno Nobel with a clean separation from the asset.
• Completion: the transaction is expected to complete in 3Q26, subject to satisfaction of a limited set of conditions precedent, including reaching an acceptable agreement between Dyno Nobel, Mayfair and the Queensland Government, ACCC and other relevant regulatory approvals. Consistent with commentary in the company’s 2025 results, if the transaction does not complete, Dyno Nobel will progress an orderly closure of Phosphate Hill by 30 September 2026.

Read the article online at: https://www.worldfertilizer.com/phosphates/09032026/dyno-nobel-agrees-to-sell-phosphate-hill-to-ryowa-ii-gps/