en.Wedoany.com Reported - WesCEF, the chemicals, energy, and fertiliser division of Wesfarmers, unveiled growth plans during its 2026 strategic briefing, focusing on fertiliser market responses, capacity expansion, and progress on the Mt Holland lithium project. The division, which operates its fertiliser business through subsidiary CSBP, said it is addressing global supply disruptions and benefiting from rising ammonia prices driven by the Middle East conflict. WesCEF Managing Director Aaron Hood noted that the strategy centres on operational excellence, customer relationships, major growth projects, and the development of the Mt Holland lithium project. The business is a key supplier of fertilisers, ammonium nitrate, sodium cyanide, LPG, and natural gas in Western Australia, and is the state's largest fertiliser producer and ammonium nitrate manufacturer.
Ammonia prices surged following the escalation of the Middle East conflict, creating challenges for the fertiliser supply chain. CSBP's response includes sourcing alternative supplies for growers affected by upstream order cancellations and increasing output from its own manufacturing facilities amid local supplier disruptions. WesCEF noted that CSBP relies on imports for approximately half of its ammonia needs. The company stated that while rising ammonia costs pressure the fertiliser market, higher prices also improve profitability for ammonia-based finished products, with most benefits expected to be realised in the first quarter of fiscal 2027 due to contract timing.
Beyond fertiliser market dynamics, WesCEF is advancing several industrial expansion projects. In the first half of fiscal 2026, the company completed a debottlenecking of the Nitric Acid Ammonium Nitrate Plant 3 (NAAN3), increasing annual ammonium nitrate capacity by approximately 40,000 metric tonnes to around 865,000 metric tonnes. Management indicated the potential for an additional 80,000 metric tonnes of capacity in the future. Additionally, the company completed the first phase of the Australian Gold Reagents expansion, boosting annual sodium cyanide capacity by approximately 35,000 metric tonnes to 130,000 metric tonnes, positioning it among the world's largest sodium cyanide producers. The company expects benefits from the sodium cyanide and ammonium nitrate expansions to become increasingly apparent from fiscal 2027.
The Mt Holland lithium project represents another major growth driver. WesCEF said the mine and concentrator achieved nameplate spodumene capacity in fiscal 2026, and the refinery produced its first batch of lithium hydroxide. The company is advancing plans to double the concentrator's nameplate capacity to approximately 760,000 metric tonnes per year, with a final investment decision expected in the first half of fiscal 2027. WesCEF views lithium as a key long-term growth platform while evaluating expansion options to reduce production costs and increase recoverable lithium output. According to management, priorities for fiscal 2027 include ramping up capacity at the Mt Holland lithium refinery, capturing benefits from ammonium nitrate and sodium cyanide capacity expansions, advancing additional growth projects, and continuing progress on decarbonisation targets.
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