IPF sale highlights need for greater protections for Australian gas, potassium and phosphorus-based resources

The grains industry is closely watching the impending sale of Incitec Pivot Fertilisers to an Indonesian government-backed fertiliser company, with industry leaders keen to ensure Australian producers maintain access to a consistent supply of critical inputs. GrainGrowers chairman Rhys Turton said the sales process involving buyer PT Pupuk Kalimantan Timur had been under way for some time. GrainGrowers members have expressed concerns over access to an uninterrupted supply of products. PT Pupuk Kalimantan Timur is one of Asia’s biggest urea, ammonia, nitrogen, phosphorous and potassium fertiliser producers. It owns five ammonia plants and five urea plants, producing more than 3.4 million tonnes of fertilisers annually and supplying fertilisers to Australia. Mr Turton said he understood the sale was progressing and would likely be subject to several conditions, including Foreign Investment Review Board approval. “We have always said that access to Australian assets and resources should not come at the expense of Australian producers,” he said. The sale has highlighted the need for increased protections for Australian gas, potassium and phosphorus-based resources. In particular, potassium and phosphorus must be added to Australia’s critical minerals list given their importance to agriculture and food security, Mr Turton said. “Not having domestic access to Australia’s locally mined and processed fertilisers such as super phosphate and other fertilisers derived from the Phosphate Hill mine could compromise Australian agricultural production,” he added. “If the deal is to proceed there must be safeguards to protect Australia’s resources to ensure agriculture in Australia can continue to function efficiently.”