en.Wedoany.com Reported - Dyno Nobel has signed an agreement to sell its monoammonium phosphate/diammonium phosphate (MAP/DAP) production plant at Phosphate Hill to Mayfair. The plant is Australia's only MAP/DAP production facility. The sale agreement was signed on June 30, following Dyno Nobel's previously stated intention to exit the fertilizer industry, as the plant has faced ongoing operational and cost pressures.

The Phosphate Hill plant has been plagued by sulfuric acid supply issues and disruptions on the Mount Isa railway line used to transport products to the Port of Townsville in Queensland.

The Australian federal government and the Queensland government provided a A$160 million loan to support operations at Phosphate Hill, according to the Ministry for Industry and Innovation. The loan will help Mayfair upgrade the facility and includes assistance to address rising sulfur costs following the US-Iraq war. According to data from the Australian Bureau of Statistics (ABS), 99% of Australia's sulfur is imported from Canada. Argus Media assessed sulfur FOB Vancouver at C$1,150 per tonne on June 25, up 136% since February 26.

In the fiscal half-year ending March 31, 2026, production at Phosphate Hill fell 9% year-on-year to 272,800 tonnes. ABS trade data shows that MAP/DAP exports from the Port of Townsville during the same period were flat year-on-year at 116,700 tonnes. Exports from January to April fell nearly 100% year-on-year to just 43 tonnes.

Prior to the sale, Australian agricultural company Ridley held a supply agreement for all MAP/DAP production from Phosphate Hill through Incitec Pivot Fertilizers, and plans to renegotiate the deal with Mayfair.