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Marathon, AETI to establish S Australia fertiliser plant

7th August 2015

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – ASX-listed junior Marathon Resources has signed a heads of agreement with South Australia’s AETI Investment Unit Trust to develop a chemical and fertiliser facility, which would source raw material from the Leigh Creek project, in South Australia.

Marathon said AETI would provide the technology for the proposed project, while the Leigh Creek project would provide the hydrogen and nitrogen for the direct synthesis of ammonia and would supply carbon dioxide, power steam and water.

The ammonium nitrate facility would use technology already being used in two existing Queensland-based ammonium nitrate manufacturing plants.

Marathon noted that the production of ammonium nitrate and fertiliser at Leigh Creek would be a first for South Australia, with the state currently importing all of its ammonium nitrate requirements and nitrate-based fertiliser.

AETI had started discussions with potential strategic partners for offtake agreements.

The heads of agreement between the two companies also envisaged exploring other mining services-based opportunities at Leigh Creek, Marathon said on Friday, adding that this could result in employment opportunities in the near term.

Edited by Chanel de Bruyn
Creamer Media Online Managing Editor

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