Perdaman Industries may build its new fertiliser manufacturing plant in Victoria instead of Western Australia as first planned because it has yet to reach an agreement about coal supply.
The ABC reports that the plant, which will use Perdaman's urea technology, would be the first of its kind in Australia and the largest in the world. To be located in Collie, south east of Perth, it would generate 2,000 jobs during the construction phase as well as 200 permanent jobs.
According to Perdaman chairman Vikas Rambal, the project needs to able to rely upon a guaranteed supply of coal for 20 – 30 years. And the price of that coal has to be right.
"My first preference is staying in Collie but we are talking to Victorian companies," he told the ABC.
"You have to look at the shareholder's investment, the seed capital we put in and can we protect that by shifting this project to Victoria?
"That is what we are doing now. If the coal and infrastructure is good enough then we will move there."
Perdaman originally planned to source the coal from Indian company Lanco Infratech which took over Griffin Coal's Collie mine. However, a legal dispute between the two companies halted the project in 2011.
Perdaman has also held meetings about coal supply with Chinese miner Yankuang. No deal has yet been arrived at and, as the Collie Mail reported in May, there was also speculation that the fertiliser plant project could be moved to the United States.