Fertilizer manufacturer Incitec Pivot Ltd
(ASX:IPL) has signed a 20-year supply agreement with Perdaman Chemicals and Fertilisers Pty Ltd, The Australian reporting the deal is worth $12 billion.
The deal will see Incitec Pivot receive around two million tonnes per year of granular urea fertiliser from the proposed project in Western Australia, with the exact terms of the agreement remaining confidential.
Incitec says the product would be available for sale in Oceania, India, Pakistan, Asia and the Americas.
Adding that last year the total global trade of urea was 35 million tonnes. Of that, these target markets represented 16 million tonnes. Production is expected to begin in 2014.
In the six months to 31 March 2010, Incitec Pivot posted a $132.1 million profit.
