Perdaman Urea Project and supporting infrastructure
Explore the Perdaman Urea Project, backed by NAIF's $220 million investment. Learn how it's set to revolutionise the fertiliser industry, boost local manufacturing, and create thousands of jobs in Western Australia.
August 2022
Resources
Pilbara region, WA
A new era of fertiliser production is about to begin thanks to NAIF’s commitment of up to $220 million to the Perdaman Urea Project, up to $95 million to Water Corporation for their Burrup seawater brine disposal scheme, and up to $160 million to the Pilbara Ports Authority expansion of Port Dampier.
About the Proponents
Pilbara Ports Authority
Pilbara Ports Authority (PPA) is responsible for managing and operating the world-class ports of the Pilbara region. With a focus on facilitating maritime trade, PPA plays a vital role in connecting resource-rich areas to global markets.
Renowned for its strategic port management, Pilbara Ports Authority contributes significantly to the economic growth and development of Western Australia.
Water Corporation
Water Corporation is, as Western Australia's leading water utility, dedicated to delivering high-quality water services to its communities. With an unwavering commitment to sustainability and innovation, Water Corporation ensures the availability of clean and reliable water resources, supporting the region's growth, prosperity, and environmental well-being.
Perdaman
Perdaman is an Australian chemical and fertiliser company with a strong emphasis on innovation and sustainability. Specialising in the production of ammonia and urea, Perdaman contributes to agricultural advancement by supplying essential fertilisers. Through its commitment to cutting-edge technology and environmental responsibility, Perdaman plays a pivotal role in driving both economic and ecological progress.
Project Overview
NAIF has committed a $220 million loan to support the development of the Perdaman Urea Project in Western Australia. It will be the largest urea plant in Australia.
The $6.5 billion project located 20 km north-west of Karratha will produce approximately 2 million tonnes of urea per year and kickstart a new multi-billion-dollar fertiliser industry. It is expected that just under half the urea will be kept in Australia, with the balance shipped to the Asia-Pacific, Brazil and USA.
NAIF’s latest investment builds on two previous loans worth $255 million towards key infrastructure servicing the project.
IN 2021 NAIF committed $160 million to the Pilbara Ports Authority for a new multi-user wharf and facilities at the Port of Dampier, and $95 million to the Water Corporation for the expansion of the Burrup seawater supply and brine disposal scheme.
The Perdaman Urea Plant is considered transformational for Western Australia, having been awarded Major Project Status by both the Australian and Western Australian governments.
The NAIF loan will be provided via the WA Government. Funding will only be released when all required regulatory approvals and financing conditions have been met.
How we helped
NAIF’s investment will help kickstart a multi-billion dollar fertiliser industry in Australia. The Perdaman Urea Project in Western Australia will be the largest urea plant in Australia and will have the capacity to reduce imported volumes and secure local farmers’ access to fertiliser that is vital to ensuring food security.
Public Impact
The projects will support the diversification of the Pilbara economy by developing domestic manufacturing.
The Perdaman plant is expected to provide an $8.5 billion public benefit, supporting approximately 2,500 construction and operations jobs over its 40-year life.
Related Links
Indigenous Commitments
3%
15% (total project work hours)
5% (tender value)
6%
Indigenous Engagement
- The Ngarluma, the Mardudhunera, the Yaburara, the Yindjibarndi, and the Wong-Goo-Tt-Oo people
The Ngarluma, the Mardudhunera, the Yaburara, the Yindjibarndi, and the Wong-Goo-Tt-Oo are the traditional owners of the surrounding area. Collectively, they form the Murujuga Aboriginal Corporation (MAC), which is dedicated to preserving and protecting Murujuga's land, heritage and culture, while working towards enhancing the well-being of its communities.
Murujuga is the Ngarluma-Yaburara language name of the peninsula and 42 islands located near the town of Dampier in the Pilbara region of Western Australia. Murujuga means "hip bone sticking out" and describes the shape of the peninsula and islands.
Indigenous Engagement Strategy Commitments
Perdaman
- Perdaman commits to partnering with educational foundations like the Stars Foundation and Clontarf Foundation to provide Indigenous students with work experience and opportunities through their EPC contractor.
- They actively engage in community involvement through events like supplier briefings, Supply Nation networking events, KDCCI presentations, and more.
- Perdaman supports Indigenous businesses by hosting information sessions, maintaining contact with registered businesses, offering mentoring, and providing dedicated support for prequalification requirements.
- They aim to remove barriers for Indigenous businesses by structuring packages to suit local capabilities, assessing sole source arrangements, modifying documentation, and promoting the use of Indigenous contracts.
- Perdaman seeks to provide traineeships, apprenticeships, and at least 3% Aboriginal and Torres Strait Islander employment on the Project. They plan to implement a mentoring program, support the Murujuga Living Knowledge Centre and Future Fund, and apply for UNESCO World Heritage Listing of the Burrup Rock Art.
Pilbara Ports Authority
- Pilbara Ports Authority (PPA) collaborates with the local Aboriginal community, offering opportunities for employment, skills development, funding, and other initiatives.
- PPA actively participates in events and trade expos organised by the Pilbara Indigenous Business Networking Group (PIBNG) to promote Indigenous business initiatives and partnerships.
- PPA provides Cultural Heritage Awareness and Working with Respect training to all employees, emphasising cultural sensitivity and respect.
- PPA supports local community groups like the Murujuga Land and Sea Ranger units, enhancing their capacity to manage and preserve their land and sea resources.
- PPA aims for a minimum of 15% of total work hours to be contributed by Aboriginal employees or trainees and allocates a minimum of 5% of tender value to Aboriginal-owned businesses. They also commit to regular reviews of their Cultural Heritage Management Plan in collaboration with Traditional Owners to preserve Indigenous cultural values and heritage.
Water Corp
- WaterCorp engages in early and continuous collaboration with MAC throughout the project's lifecycle.
- Mandates cultural awareness training for all project participants to ensure cultural sensitivity.
- Goal to allocate 3.2% of contracts to Aboriginal and Torres Strait Islander-owned businesses.
- Aboriginal procurement strategies through 'meet the buyer' sessions in Karratha to stimulate economic development within the Indigenous community.
- Aims for a minimum of 6% Indigenous employment at the Karratha depot, overseen by the Program Director for Aboriginal Strategy, who also ensures alignment with ongoing initiatives and conducts annual IES reviews in collaboration with Traditional Owner reference groups.
