Deepak Fertilisers and Petrochemicals, a leading explosives manufacturer in India for two decades, announced this week that an explosive factory in South Australia would not go ahead.
The Australian reported that the factory would’ve manufactured 300,000 tonnes a year of technical ammonium nitrate, widely used in the mining industry. It is estimated that 88,000 tonnes a year would’ve been required to for the BHP Olympic Dam expansion, which was cancelled last week and which was cited as a factor in Deepak’s decision.
The news – which means that 400 jobs in the construction phase and 80 full-time jobs after completion won’t be created – wasn’t all disastrous, SA Manufacturing, Industry and Trade Minister Tom Koutsantonis told Adelaide Now.
"Deepak has informed the State Government of its intention to continue to explore other possible options for an ammonium nitrate plant in South Australia," he said.
"The outlook for South Australia's mining industry remains favourable with 20 mines approved and a strong pipeline of projects in various stages of development.
"Deepak Fertilisers major concerns are site specific."
The company has also cited capital expenditure concerns, energy costs and the distance to Port Bonython jetty as reasons why the project would not be viable.