Mount Morgan Joins Move To Build Plant

Press, Volume CVIII, Issue 31586, 25 January 1968, Page 14

Mount Morgan Joins Move To Build Plant

(N.Z. Press Association—Copyright) SYDNEY, January 24. In its first big move Since the merger with Peko-Wallsend, Mount Morgan, Ltd, plans to associate with the Australian Fertilizers group in the erection of a sulphuric acid plant at Gladstone, the “Australian Financial Review” reported today.

Queensland reports say that the plant will be based on the reserves of sulphur pyrites owned by Mount Morgan, Ltd. Australian Fertilizers, Ltd, is a partly owned subsidiary of Imperial Chemical Industries of Australia and New Zealand. A.C.F. and Shirley’s Fertilizers, Ltd, is A.F.L.’s Queensland subsidiary (A.F.L. owns slightly more than half of A.C.F.). As previously announced, A.C.F. and Shirleys plans to erect superphosphate fertiliser plants at Gladstone and Townsville. It is expected that these plants will be supplied with sulphuric acid from the Gladstone plant, the Financial Review said. Gladstone is emerging as one of the key industrial centres of Queensland. It includes the Queensland Alumina plant and big coal export facilities for the central Queensland coalfields, the newspaper said. Capital Structure The capital structure of

the latest Mount Morgan sulphuric acid plant is not known, but the company is likely to be anxious to retain a large equity, the Financial Review said. A.C.F. plans a substantial investment in the fertiliser plants at Gladstone and Townsville, the newspaper said. N.P.K.-Fertlliser A.C.F. and Shirleys will make superphosphate at the new plants and consideration is being given to a later erection of a plant in Townsville to make high-analysis N.P.K. fertiliser, the Financial Review said. The use of pyrites should result in a valuable addition to profit, the Financial Review said. Mount Morgan has reserves of about 8m tons of pyrites and the company has exported relatively small quantities to Japan. However, in spite of assistance from the Commonwealth

bounty, most sulphur for sulphuric acid and superphosphate production is imported. Pyrites is produced by Norseman Gold for the Western Australian market and Nairn Pyrites supplies South Australian makers. Their output is small when compared with the 498,860 tons of sulphur imported in 1966-67, worth $15.3m.