Aquirian receives commitment for 1,500t Wubin ammonium nitrate 

Aquirian (ASX:AQN) has received its first ammonium nitrate storage and handling commitment for 1,500 tonnes through its wholly owned subsidiary Western Energetics’, Wubin Facility in Western Australia. 

Aquirian, which has a $15.73 million market capitalisation, is currently undertaking a storage expansion study targeting a 10,000-tonne capacity at Wubin, which currently has the capacity to produce 160,000 tonnes per year. 

Western Energetics has agreed to confidential terms for AN storage and handling with an industry partner for all current and available capacity at Wubin, starting in Q4 2023. 

Managing Director David Kelly says the early engagement “reflects confidence in our facility from the broader market and aligns with AQN’s energetics and technology strategy”.     

“This storage and handling commitment marks a significant milestone for Aquirian, achieving first committed revenues from our Wubin facility since financial settlement last month,” he says. 

“We look forward to expanding our commercial offerings from the Wubin facility.” 

On 27 March 2024, the company settled the purchase of the Wubin Facility from South Korean conglomerate Hanwha for $9.6 million, as reported by Mining.com.au

The mining services provider hopes the facility will deliver revenue of $40 million to $60 million per year, with an earnings before interest, taxes, depreciation, and amortisation (EBITDA) range of 12% to 16%. 

During the settlement process, Aquirian said it had garnered interest from existing and new customers. 

Wubin sits on the northern freight corridor and was built in 2020 with licensing to produce 110,000tpa of ammonium nitrate emulsion annually. 

Ammonium nitrate is a widely used chemical compound commonly utilised as a fertiliser and as the main component in many types of mining explosives, where it is mixed with fuel oil and detonated by an explosive charge.

Aquirian is a diversified mining services company which provides people, equipment, and products that support mining clients across their operations. 

As of December 2023, Aquirian had under $4.45 million in cash and cash equivalents at hand, according to its latest half yearly accounts. 

Write to Adam Drought at Mining.com.au

Images: Aquirian
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Written By Adam Drought
Born and raised in the UK, Adam is a sports fanatic with an interest in Rugby League and UFC/MMA. When not training in Muay Thai and Brazilian Jiu Jitsu, Adam attends Griffith University where he is completing his final year of a Communication & Journalism degree.