Loan towards to the expansion of an integrated fertiliser company (Investment Decision: December 2020)
About the Project
Agripower Australia Limited is an integrated producer of a range of silicon fertilisers and related products for use in broadacre agriculture, horticulture, viticulture, organic agriculture, amenity horticulture and lawns and turf.
The company has been undertaking open pit mining at its amorphous silica mine site in Conjuboy near Greenvale, Queensland since 2012, and processes its silica-based fertiliser products at its processing facility in Charters Towers. The company forecasts that its amorphous silica deposit has an expected mine life of around 200 years.
NAIF has agreed to support the company through a loan of up to $71 million to help fund a range of capital works projects across the company’s silicon fertiliser mining operations in Conjuboy and its processing facility in Charters Towers in accordance with an approved capital works program.
This is a first of its kind operation in Northern Australia, exploiting a world class resource with a long mine life. The NAIF financial assistance will accelerate the expansion of operations and help create a significant number of long-term, multi-generational jobs in the Charters Towers region.
Note: Financial assistance to the project is subject to a number of conditions including the finalisation of the Queensland Government’s consideration and agreement for the approved funds to be advanced.
Agripower has in place an ILUA with the Gugu Badhun People and in accordance with Agripowers Indigenous Employment Strategy will work with regional Indigenous People to create traineeships and employment opportunities.
Economic Impact and Public Benefit
The projects are forecast (at point of NAIF’s investment decision) to generate more than 500 regional jobs (345 FTE construction roles and 171 FTE operational roles) and deliver $256m to the region in the form of contributions to Gross Regional Product over 20 years.