Indonesia: NPK j-v with Jordan

PT Pupuk Sriwijaya Palembang and Jordan Phosphate Mine Co. Ltd. (JPMC) have agreed on a cooperation plan to develop a company that will produce phosphoric acid, sulphuric acid, as well as NPK fertilizer. The factory will be located in Gresik of East Java province. The project will be carried out in 2012 to 2015 and it consists of facilities with a nameplate capacity of 0.2 million tonnes phosphoric acid per year, 0.8 million tonnes sulphuric acid per year, and 1 million NPK fertilizer per year. The factory will need yearly some 150,000 tonnes of ammonia, 800,000 tonnes of phosphate rock (imported from Jordan), and 270,000 tonnes of sulphur.

The investment cost is of about US$ 310 million.

Indonesia is the third biggest rice producer, after China and India, and its current fertilizer consumption in Indonesia is of about 8 million tonnes and has been forecasted to increase to 12 million tonnes in 2015. Jordan Phosphate Mine Co. is the sixth-largest global phosphate rock producer (up to seven million tonnes a year) and the second-largest exporter.

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