Dyno Nobel's Phosphate Hill Fertiliser Operation Acquired by Mayfair

Dyno Nobel's Phosphate Hill fertiliser operation in north-west Queensland has been acquired by Australian energy resources company Mayfair Corporations Group. The initial purchase price was $1, with an additional payment of up to $100 million contingent on Dyno Nobel fulfilling contractual obligations and performance targets under Mayfair's ownership.

Acquisition Details and Background

Dyno Nobel had previously announced plans to cease operations at the Phosphate Hill plant in September 2026 if a buyer was not secured by March.

The facility, located 140 kilometers south-east of Mount Isa, employs approximately 540 individuals, including staff at its acid plant adjacent to Glencore's Mount Isa copper smelter.

Vital Link to Mount Isa Copper Smelter

The Mount Isa copper smelter relies on Phosphate Hill for its sulphur supply. The smelter utilizes Dyno Nobel's nearby acid plant to process its sulphur output, with the resulting acid then supplied to the fertiliser facility. This interconnected arrangement helps the smelter manage emissions and adhere to environmental regulations in Mount Isa.

Cessation of operations at the Phosphate Hill facility was projected to likely result in the closure of the copper smelter, even with a previously announced $600 million government rescue package.

Industry and Government Reactions

Dyno Nobel chief executive Mauro Neves stated the sale is a significant development, highlighting that teams in Phosphate Hill, Mount Isa, and Townsville will continue to ensure a domestic source of fertiliser for Australian farmers.

Mayfair chief operating officer Jarred Stanes affirmed the company's commitment to securing the future of Phosphate Hill operations. He noted that the experienced workforce and supporting North West Queensland communities will continue to sustain Australia's only ammonium phosphate fertiliser production.

Mayfair chief operating officer Jarred Stanes affirmed the company's commitment to securing the future of Phosphate Hill operations, stating that the experienced workforce and supporting North West Queensland communities will continue to sustain Australia's only ammonium phosphate fertiliser production.

State Member for Traeger Robbie Katter commented that the announcement is positive for north-west Queensland's future, expressing satisfaction that a buyer has been secured.

Federal Minister for Industry Tim Ayres indicated that the government plans to collaborate with industry, workers, and the community to advance the region's industrial capability, emphasizing the importance of increasing domestic production to reduce import reliance.