Sigdo Koppers SA aims to secure bank financing by the end of next year for an $800 million ammonium plant in Peru as part of the country’s goal of becoming South America’s largest petrochemicals producer after Brazil.
Sigdo Koppers, based in Santiago, and its local partner Brescia Group will award by June a construction and procurement contract for the ammonium nitrate project called Nitratos del Peru, said Geir Skarstein, who heads Sigdo Koppers’ Peruvian unit. The partners last week signed a letter of intent with Spain’s Tecnicas Reunidas SA to undertake studies.
The project, which has retained BNP Paribas as a financial adviser, is part of $60 billion in planned mining and energy investments over the next decade in Peru, including petrochemical projects by CF Industries Inc., Orica Ltd. and Braskem SA. Odebrecht SA and SK Group are also studying projects to produce polyethylene, fertilizers and explosives for mining.
“It makes sense to have industries in clusters as this produces synergies,” Skarstein said in an interview in Lima today. “It will be good for the local mining industry to have a secure source of supply and for the trade balance, as we’ll have the capacity to replace all ammonium nitrate imports.”