Incitec Pivot plant plans on ice

Rising construction costs have been blamed for fertiliser maker Incitec Pivot cancelling plans to open a new plant at Kooragang Island.

In a statement to the ASX and reported by AAP and others, Incitec said the plant, which has been the subject of $17 million worth of feasibility studies, will not go ahead.

“The decision on whether to proceed with the development has been deferred for at least two years, reflecting the anticipated reduction in demand for ammonium nitrate and the high cost of construction in Australia,” read the statement.

“At this time, the project has not met (Incitec Pivot's) strict financial hurdles.”

The company released an environmental impact statement for the ammonia nitrate plant earlier this month. The Land reported that some residents on Kooragang, near Newcastle, had concerns about the proposed plant opening next to an Orica explosives factory.