DYNO Nobel, formerly Incitec Pivot, has completed a review of its fertiliser operations, warning its Phosphate Hill plant will close unless a buyer is found by March 2026.

In an ASX statement on Wednesday, the company confirmed the sale of its fertiliser distribution arm to Ridley Corporation had been completed on September 30.

It also advised conditions had been met for the sale of its Gibson Island site on the Brisbane River to a subsidiary of an ASX-listed property developer.

Dyno Nobel began a strategic review of its manufacturing plants about a year ago, after moving to separate its fertiliser and explosives businesses, and sell the fertiliser arm.

It flagged a range of possible outcomes, from full closure of sites to putting them in “care and maintenance” or reusing parts of the facilities.

The move came months after the proposed sale of the fertiliser manufacturing and distribution assets to Indonesian company PT Pupuk Kalimantan Timur fell through.

In Wednesday’s update, Dyno Nobel said the sale process for Phosphate Hill was “continuing”.

“If an agreed sale cannot be reached by 31 March 2026, Dyno Nobel will progress an orderly closure of Phosphate Hill by 30 September 2026,” the statement said.

“Dyno Nobel remains focused on maintaining safe and reliable operations of the asset during this period and continues to work with stakeholders to achieve a responsible transition of ownership of Phosphate Hill as a going concern to a qualified new owner.

“Some ongoing capital investment will be made to ensure the safety of operations, which is expected to be funded from Phosphate Hill’s cash flows.

“In the event of a Phosphate Hill closure, the costs of remediation and closure are expected to be offset by tax loss benefits and the release of working capital.”

The company also highlighted the potential issues for the plant if the neighbouring Glencore’s Mount Isa copper smelter and refinery closes as is planned.

The smelter supplies sulphuric acid to Phosphate Hill which is used to manufacture monoammonium phosphate (MAP) and diammonium phosphate (DAP).

“Securing the economic supply of natural gas and metallurgical gas from the Glencore smelter remains critical to the future of Phosphate Hill and a solution to these critical variables continues to be pursued in collaboration with the Commonwealth and Queensland governments.”

Geelong, Gibson Island update

As announced in May, Dyno Nobel is progressing work to close its Geelong manufacturing operations, with final production expected this month.

Ridley has the option to purchase the remediated Geelong site for an additional $75M.

Further “detailed planning” has been undertaken by Dyno Nobel for these remediation works, which are now expected to cost $61M, up from the previously forecast estimate of $54M.

Higher remediation work costs are also now expected for the Gibson Island site.

Completion of the sale to an unnamed property developer is on track for the coming weeks.

Dyno Nobel said the costs for this site are predicted to be approximately $157M, up from the previous estimate of about $92M.

“Further detailed planning has progressed for the remediation activities to be performed by Dyno Nobel, which has led to an increase in the expected scope of remediation work and associated extension of leaseback timing.”

Source: Dyno Nobel