Incitec Pivot Limited
(ASX:IPL) intends to suspend its prospective feasibility study into the Kooragang ammonium nitrate manufacturing site in Newcastle, New South Wales.
The fertilizer and explosives manufacturer says it will delay the project by two years.
The company anticipates reduced demand for ammonium nitrate, citing that alongside high construction costs in Australia as reasons for the delay.
IPL will include the $17 million cost of the feasibility study in the 2012 financial year period.
Incitec Pivot posted a $140 million half year net profit on March 31 this year.
