Hydro Agri to sell ammonia from the Burrup project

(Dec. 20, 2002) Hydro Agri has signed a long term offtake agreement with Burrup Fertilisers Pty Limited to sell all ammonia from the project's new ammonia plant due to start production in 2005.

Burrup Fertilisers Pty Limited is headquartered in Perth, Western Australia and was incorporated in 2001 for the purpose of developing the Burrup Fertilisers Project.

The purpose of the Burrup project is to develop value-added downstream processing of Western Australia’s abundant natural gas resources by building a 2,200 tonne per day (759,000 tonne per year) anhydrous ammonia plant on the Burrup Peninsula in Western Australia. Financial closing of the project was announced on December 19, and the project will now go forward into the construction stage, aiming for start up in the first half of 2005.

All ammonia produced will be sold under a long term offtake agreement to Hydro Agri, the world’s leading supplier of mineral fertilizers, with particular strength in nitrogen fertilizers and ammonia.

Hydro Agri will sell the Burrup ammonia in growth markets mainly in Asia.