Wednesday, 26 April 2023

Perdaman Chemicals and Fertilisers Pty Ltd (“Perdaman”) acknowledges the Traditional Custodians of Murujuga land, namely the Ngarluma, Yindjibarndi, Yaburara, Mardhudhunera and Woong-Goo-Tt-Oo people and pays our respects to their Elders past, present and emerging.

Perdaman is pleased to announce that it has closed the financing of its c. A$6.0 billion urea project (the “Project”) to be constructed on the Burrup Peninsula, approximately 20km north of Karratha, Western Australia. On completion of the Project, Perdaman will be Australia’s leading fertiliser producer. The Project funding is supported by leading global independent infrastructure investor Global Infrastructure Partners (“GIP”), which has committed to invest over A$2.1 billion in the Project through a strategic equity investment. The funding is completed by a strong group of debt providers, including both the Northern Australia Infrastructure Facility (“NAIF”) and Export Finance Australia (“EFA”).

This state-of-the-art facility will be the largest urea plant in Australia and one of the largest in the world. Urea is a vital component of the agricultural fertiliser market with increasing demand as more efficient and intensive global food production is required to meet the needs of a growing world population.

The construction of this plant marks a significant milestone for Australia’s future food security, and it represents the largest investment ever made in the Australian fertiliser industry. The plant’s expected production of 2.3 million metric tons per year of urea will help to address the growing demand for high-quality fertilisers, reduce the nation’s reliance on imports and enhance national resilience.

The Project will utilise feedstock from Woodside under a 20-year agreement and has a 20-year offtake agreement with Incitec Pivot. 

The urea plant incorporates the latest technology with optimised energy efficiency and low emissions:  Topsoe for the ammonia synthesis and Snamprogetti & Thyssenkrupp for the urea and granulation processes. 

The plant has been designed to minimise both industrial emissions and the carbon footprint of fertiliser production. Perdaman is committed to making the urea plant net carbon zero by 2050 and is implementing global best practices with respect to greenhouse gas emissions which represents our commitment to mitigating climate change. The plant also includes a world-class control system that will ensure that the urea produced is of the highest quality.

Perdaman is grateful for the ongoing support for this Project from the Western Australian State Government and the Federal Government.  Perdaman also thanks the Murujuga Circle of Elders and Murujuga Aboriginal Corporation for sharing their time, knowledge and guidance during extensive consultation and looks forward to a long-term relationship building a better and more respectful future on Murujuga.

The company believes the Project will provide a major boost to the Western Australian economy by generating an average of around 2,000 jobs during the four-year construction phase. On completion, the plant will provide 200 permanent jobs in Karratha and will be capable of providing security to Australia in respect of its needs for urea fertilisers and associated products such as diesel exhaust fluid (e.g. AdBlue).

“We are excited to be constructing Australia’s largest ever downstream manufacturing project which represents a significant investment in Australia’s manufacturing sector,” said Vikas Rambal, Chairman and CEO of Perdaman. “This state-of-the-art facility will help to ensure that Australia has a secure and reliable source of high-quality urea, supporting our nation’s farmers and food producers. We are excited to welcome an investor of the calibre of GIP to support the Project.  GIP’s experience in working alongside project sponsors globally is second to none, and I am confident that the resources and expertise they bring will contribute significantly to the success of this very important Project.”

Construction of the Project will commence immediately and will be managed by Perdaman’s experienced EPC joint-venture partners Saipem S.p.A and Webuild S.p.A.

EY acted as equity financial advisor to Perdaman on the Project, Societe Generale acted as debt financial advisor, whilst White & Case acted as legal advisor. Allens acted as legal advisor to GIP.

***

About the Project

The Project will be one of the lowest-cost suppliers of urea in the Asia-Pacific and as well as one of the largest urea producers globally. The Project is uniquely positioned among key domestic and export markets and critical enabling infrastructure. The Project has been strongly supported by The Western Australian Government being allocated Project of State Significance status.

The construction of this plant is a major milestone for Perdaman and for the Australian fertiliser industry. It demonstrates our commitment to innovation, sustainability, and reducing our environmental impact. We look forward to leading the industry in providing high-quality, sustainable fertilisers to support global food production and security.

About Perdaman

Perdaman is a multinational group based in Western Australia with a long-standing track record in involvement within a diverse range of markets. From investments in fertiliser production to help our farmers produce crops, to the ownership and management of shopping centres that make wonderful experiences and community hubs, from the production and distribution of pharmaceuticals to provide better healthcare, to recruitment & migration services and advanced energy solutions, we are an innovative company that actively seeks out new opportunities. Integral to this is our corporate culture of creating leaders and growing together as a team, and all our operations are backed by extensive financial services to ensure strength and growth. We are also highly involved in the community and actively give back – from supporting local sporting teams to contributing towards better education. We do what we do with passion, and we do what we do with a sincere desire to create a better tomorrow.

For more information, visit www.perdaman.com.au

About Global Infrastructure Partners

GIP is a leading independent infrastructure fund manager that makes equity and debt investments in infrastructure assets and businesses. GIP targets investments in the energy, transport, digital infrastructure, and water/waste sectors in both OECD and select emerging market countries. Headquartered in New York, GIP operates out of 10 offices: New York, London, Stamford (Connecticut), Sydney, Melbourne, Brisbane, Mumbai, Delhi, Singapore and Hong Kong. GIP manages c. US $89 billion for its investors. GIP’s portfolio companies have combined annual revenues of c. US $80 billion and employ over 100,000 people.

For more information, visit www.global-infra.com.

About Export Finance Australia  

EFA is Australia’s export credit agency. EFA supports Australia’s trade and infrastructure agenda by providing commercial finance for exporting businesses and Indo-Pacific infrastructure development. EFA administers the Australian Government’s National Interest Account, which includes the Critical Minerals Facility, the Defence Export Facility and lending for the Australian Infrastructure Financing Facility for the Pacific.

For more information, visit https://www.exportfinance.gov.au/

About Northern Australian Infrastructure Facility

NAIF is a Commonwealth Government development financier, investing for impact in Northern Australia. NAIF’s primary purpose is to accelerate infrastructure development and thereby drive transformational growth in northern Australia by innovative financing that:

• Generates public benefit including that outside of what is captured by the project proponent.
• Encourages longer term growth in the economy and population of northern Australia.
• Encourages private sector participation in the financing of northern Australia’s infrastructure needs; and
• Facilitates sustainable Indigenous participation, procurement, and employment outcomes.

For more information, visit: www.naif.gov.au 

Media Contact:

Rashpal Kaur (Manager – Corporate)

rashpal.kaur@perdaman.com.au

+61 477 722 620

$4.2BN US KARRATHA UREA PROJECT – REVISED EPC CONTRACT SIGNED

Perdaman Chemicals and Fertilisers has signed a revised Engineering, Procurement and Construction (EPC) contract for its Urea Project in Karratha with a 50/50 joint venture between Clough of Western Australia and Saipem of Italy.

The new total EPC contract price is USD $2.7billion, which has been revised from the previous contract signed in March 2021. This new price increase is due to changes in market conditions and logistical challenges faced in recent times.

Perdaman will invest a total of $4.2 billion US to develop the plant which will transform natural gas into urea, a form of fertiliser widely used in the production of food for future generations. Perdaman has secured natural gas for 20 years from Woodside under the Gas Supply Agreement signed in November 2018.

The Project has been strongly supported by The Western Australian Government, being allocated Project of State Significance status.

Perdaman acknowledges and pays its respect to the traditional custodians of the land and to past, present and emerging elders. Perdaman believes that the Urea Project will provide a major boost to the Western Australian economy by generating on average around 2,000 jobs during the three-year construction phase. On completion, the plant will provide 200 permanent jobs in Karratha.

Perdaman’s Chairman Vikas Rambal says the milestone is significant and is a strong example of economic diversification.
“The coronavirus pandemic and latest war in Ukraine has taught us an important lesson about the food security of our society and our over-reliance on imports,” said Mr Rambal.

“The company is pleased to be part of job creation for the State and is privileged to be a part of the manufacturing initiative project in WA again, and we are very thankful to the federal government for the continuous support,” said Mr Rambal.

The Australian Manufacturing Workers’ Union (AMWU) and the Electrical Trades Union have negotiated WA’s first agreement to include conditions from the state government’s FIFO mental health code of conduct.

The signed agreement between the AMWU and multinational Perdaman, which is set to build a $4.5 billion fertiliser plant in the Pilbara, will see all workers receive good wages and conditions, family friendly rosters and a commitment to better working environments for mental health.

AMWU State Secretary Steve McCartney said the agreement will provide workers democracy in their workplace, which equals a safer job.

“The union movement with Perdaman has set the benchmark for workers in the Pilbara by being the first in WA to officially acknowledge the state government’s mental health code of conduct,” he said.
“The two unions have worked together with the state government and Perdaman to create this agreement, which will also facilitate better communication between the union and the employer in the workplace.
“As part of the agreement there will be no moteling arrangements. Here’s one employer that’s not scared to have a sense of community in the workplace.
“I commend Perdaman for taking the first steps to look after workers’ wellbeing, their mental health and their families to safeguard a prosperous long-term working future.
“Perdaman has stood up and sent a message that this is the way forward in WA. At the end of the day this is about creating jobs, long term, local, permanent, well paid jobs.
“The state government code, and Perdaman picking it up, should hopefully create a change for workers and their families in the Pilbara,” Mr McCartney said.

Comments attributed to Perdaman Chairman Vikas Rambal:

“I want to thank the AMWU who assisted in Perdaman being able to achieve this agreement by allowing us to understand the issues around worker’s mental health.
“Perdaman intends on a long-term future in the Pilbara and is committed to doing the right thing for the local community.

“As part of the agreement we have revised rosters and conditions to ensure our workers are looked after and agree to maintain a healthy working relationship with the union to ensure communication lines remain open.”

Comments attributed to Peter Carter, State Secretary ETU:

“As well as the progressive family friendly and mental health clauses in the agreement, it is also a welcome departure from the wage race to the bottom prevalent over the last several years in the construction industry and should be a guide for all projects in the state.
“Workers’ wages are an important catalyst for economic growth and we urge the state government to follow suit on all their infrastructure projects so WA taxpayers get the best return from their taxes which will help fund these projects.”

Comments attributed to Kevin Michel MLA:

“The agreement signed by Perdaman and the Australian Manufacturing Workers’ Union is a fantastic victory for our local workers in the Pilbara.
“The rights of workers, the mental health of workers, and the wellbeing of the community, are all at the forefront of this agreement between Perdaman and the AMWU.
“The agreement between Perdaman and the AMWU strikes a fair balance between the needs of the community and local workers on local projects.”

Read Media Release

Listen to podcast of AMWU’ State Secretary Steve McCartney talking about the agreement

A Family Fun Day event was hosted at The Village at Margs yesterday, the first event proudly sponsored by Perdaman as the new shopping centre owner.

The event brought the community together with some kids activities including face painting, balloon twisting, hair & feather tinsels and a magician performing his tricks! We also had some live music performed by a local band called River & Bugs which everyone enjoyed.  

We would like to thank all retailers for their participation and contribution, and we look forward to more successful events in future. 

Perdaman was proud to be an official sponsor of the Avon River Festival, Northam’s biggest annual event organised by the Shire of Northam. This event is recognised as the starter event for the world-famous Avon Descent White-Water Race.

The event gathered around 5,000 people and included:

• a street parade, where our Property Manager was part of the judging panel
• markets & food stalls
• stage show
• sideshow alley
• fireworks finale