Incitec Pivot has commenced ammonium nitrate production at its plant in Moranbah, Queensland.
According to the company its "downstream Nitric Acid, AN Solution and AN Emulsion plants have produced the initial tonnes of ammonium nitrate".
This production rate has been based on imported ammonia.
Incitec says the commissioning of ammonia plants is also running according to plan and it will be brought online in the fourth quarter of this year, once the down stream plants are stabilised.
The company is known for its fertiliser and explosives manufacturing.