Study highlights potential for acrylic acid plant

7/4/96

The Department of Resources Development has identified yet another industry which would be well placed to help the thriving mineral processing industry both here and overseas.

Minister for Resources Development Colin Barnett said a study by the Department of Resources Development had highlighted that an acrylic acid plant would be well placed to service the State's thriving mineral processing industry as well emerging South East Asian markets.

The Minister said acrylic acid was used to form super absorbent materials.

It is used in the mining industry to separate minerals from waste material.  It also used in the manufacture of disposable nappies to make them more absorbent.

Mr Barnett said about 800 million disposable nappies were sold annually in Australia, each containing four to five grams of polyacrylic acid, representing a considerable market for the material.

Acrylic acid is made from propylene, a hydrocarbon gas which is a by-product of oil refineries.

The Minister said the potential for the industry would be promoted overseas.

Based on a plant being built to produce 45,000 tonnes of acrylic acid per annum, the facility could cost about $230 million. The BP Kwinana oil refinery is capable of producing enough propylene to support a plant with twice the production rate.

The Minister said that Kwinana had been identified as an appropriate area for such an industry due predominantly to the availability of land nearby the BP refinery and related industries.

Media contact: Carolyn Vicars 222 9699