Incitec Pivot Limited (ASX:IPL) will keep its Phosphate Hill operation and other assets in the fertiliser business.
IPL has put the brakes on negotiations with PT Pupuk Kalimantan Timur (PKT) for the sale of Incitec Pivot Fertilisers (IPF).
IPF owns and operates the Phosphate Hill mining operation south of Mount Isa in North West Queensland and the Mount Isa Sulphuric Acid Plant.
IPF also has several primary distribution centres across Australia’s east coast including four in Queensland at Cairns, Townsville, Mackay and Gibson Island.
Main image: IPL’s Phosphate Hill operation in North West Queensland
IPL had been focused on completing a sale transaction in a timely manner said CEO and Managing Director, Mauro Neves.
It would allow the company to commence its on-market buyback of up to $900m said Mr Neves.
There were unlikely to achieve the outcome with PKT in an acceptable timeframe, said Mr Neves.
“We will continue to assess options for the structural separation of the two businesses, however in the near-term our focus will be on progressing the on-market buyback program for the benefit of our shareholders.
“Our Dyno Nobel business is being transformed into a global operation which is expected to substantially improve its financial performance.
“Our IPF business remains focused on value accretive market share growth and is in a strong position for the agricultural season ahead.”