Perdaman Urea Project and supporting infrastructure
NAIF Loans: Perdaman Urea Project $220m, Pilbara Ports Authority $160m (Port of Dampier wharf and facilities) and Western Australia Water Corporation $95m (Burrup seawater supply and brine disposal scheme expansion).
About the Projects
The Northern Australia Infrastructure Facility (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 US$4.2 billion project located 20 kilometres north-west of Karratha will produce approximately two 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 from the financier worth $255 million towards key infrastructure servicing the project.
NAIF last year 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 Western Australia 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.
Economic Impact
The projects will support the diversification of the Pilbara economy through developing domestic manufacturing.
The Perdaman plant is expected to provide an $8.5 billion public benefit, supporting a peak of more than 2,500 construction and operations jobs over its 40-year life.
Indigenous Engagement
NAIF will also continue to work with the proponents on delivery of their Indigenous Engagement Strategies to ensure positive Indigenous employment and cultural outcomes are achieved.
The Perdaman Urea Project, Western Australia Water Corporation and Pilbara Ports Authority have made commitments under their Indigenous Engagement Strategies regarding Indigenous participation, employment and procurement (notably during construction), and will look to continue to build on their current Indigenous engagement initiatives throughout the operational phase including working closely with the Murujuga Aboriginal Corporation (MAC) to ensure cultural heritage management is managed appropriately, and build each of their Indigenous workforces, and support local Indigenous community events and local Indigenous businesses.
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