Key facts
- Dyno Nobel sold its Phosphate Hill plant to Mayfair for A$1.
- The plant is Australia's only MAP/DAP production facility.
- The sale includes A$160 million in federal and state government loans.
- Phosphate Hill has faced issues with sulphuric acid supply and rail disruptions.
Australian explosives producer Dyno Nobel has sold its 769,000 t/yr Phosphate Hill plant to Australian energy and resources firm Mayfair for a nominal A$1, with support from federal and state government loans. The sale agreement was signed on June 30, with the announcement made on July 1.
Phosphate Hill is Australia's sole MAP/DAP production plant and has recently encountered operational challenges, including issues with sulphuric acid supply and rail disruptions on the Mount Isa line. Dyno Nobel's divestment from the fertilizer sector is likely driven by these ongoing operational and cost pressures.
The Australian federal and Queensland state governments have provided a A$160 million loan to support operations at Phosphate Hill. This funding will assist Mayfair in upgrading the facility and managing higher sulphur costs, particularly in light of geopolitical events impacting global supply chains.
Australia imports 99% of its sulphur, primarily from Canada. Sulphur prices have significantly increased, with Argus assessing the commodity at $1,150/t fob Vancouver on June 25, a 136% rise from late February. Production at Phosphate Hill fell by 9% to 272,800t in the financial half-year to March 31, 2026, while exports from the Port of Townsville were flat at 116,700t in the same period. Exports in January-April saw a near 100% drop year-on-year to 43t.
Australian agribusiness Ridley, which previously held a supply agreement for all MAP/DAP output from Phosphate Hill through Incitec Pivot Fertilizers, plans to renegotiate its deal with Mayfair. Ridley did not comment on the matter.