Orica has signed a long term agreement for CF Industries to supply up to 725 747 tonnes of ammonium nitrate
The supply agreement for industrial grade AN and AN solution will run for a decade from January 2017 onwards, with an option to extend it for another five years to the end of 2013.
CF will supply the AN from its Yazoo City manufacturing plant to support Orica’s growth in North America.
Orica CEO Ian Smith said “this important agreement with CF Industries provides long-term certainty of supply to Orica’s customers across North America”.
Any future contract prices will be based on which ever is lower out of the combination of inflation and gas prices movements, or CF’s market prices for explosive products.