December freight train accident to cost Incitec $14 million

Incitec Pivot has estimated the cost of a December 27 freight train accident will be a $14 million hit to net profit after tax, though expects fertiliser output at the affected plant to be unchanged.

A locomotive and 26 carriages operated by Aurizon were derailed late last year at Julia Creek, carrying sulphuric acid to Incitec’s Phosphate Hill fertiliser factory.

The company expects to resume full operations at the plant in the third week of the month, reports AAP. It will mitigate the impact of the accident – and make no change to a planned 950,000 tonne output of fertiliser – by bringing forward planned maintenance.

"The fact that the company has not indicated prospective insurance recoveries would appear to indicate there may not be any," an unnamed analyst told Fairfax.