Posey County to Finance Indiana N Project

June 19, 2013 04:18 AM
 

Indiana Governor Mike Pence and The Indiana Finance Authority have agreed to step aside and allow Posey County to refinance $1.3 million in bonds earmarked for a greenfield nitrogen project. Fatima fertilizer had satisfied Department of Defense officials earlier this spring by reformulating its ammonium nitrate recipe, updating packaging and for eliminating shipments to key areas along the Pakistan-Afghanistan border.

But despite Fatima's reported efforts to curtail bomb making in its native Pakistan, Governor Pence refuses to foot the bill for the Midwest Fertilizer project. However, recognizing the economic potential for Posey County, Pence agreed to allow Posey County to refinance bond issuances and move forward with the project. In this way, the state has taken its hands off of the project and Pence has advised the Indiana Finance Authority to allow the project to move forward based on County-level financing.

"The State of Indiana stands by its decision to withdraw support for the Midwest Fertilizer project since Department of Defense officials still have not been able to independently confirm Fatima Group's promise to replace their current fertilizer in Pakistan with a formula less susceptible to misuse by hostile forces in the region.

Despite a difference of opinion on the matter, Governor Pence respects the prerogative of local officials to continue to explore the possibility of moving forward and has instructed the Indiana Finance Authority not to stand in the way of Posey County officials pursuing the project on their own."

The project is expected to take three years to complete and will return an estimated $8.9 billion in economic activity to the County. Iowa, Illinois and now Indiana are all in the midst of adding to U.S. nitrogen production capacity to service area demand and take advantage of favorable natural gas margins.


 

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