The 62-year-old from Lebanon, said to have Cypriot identity documents, was detained in the capital Nicosia.
According to the official Cyprus News Agency, police believe he imported the nitrate in ice packs as part of first aid kits.
He is expected to appear at a court in the coastal city of Larnaca on Sunday for a remand order.
Last week, police said they had detained another man after the ammonium nitrate was found at his residence in Larnaca.
The 26-year-old Lebanese-Canadian appeared in court on Friday facing possible charges of conspiracy to commit a crime and illegal possession and transfer of explosive materials.
The Cypriot authorities are also looking into whether the Lebanese-Canadian has possible links with Hezbollah.
Police asked the court for more time to complete their investigation, which also involves cooperation with international law enforcement agencies.
The man was arrested in possession of what authorities said at the time was two tons of ammonium nitrate – a fertilizer that when mixed with other substances can be used to make explosives.
Police said closer inspection showed the man’s home to contain more than five tonnes of the material.
Police spokesman Andreas Angelides said Friday that an operation was underway to remove the chemicals from the property.
The Lebanese-Canadian man arrived in Cyprus on May 21 for what he described as a holiday. He was arrested in a Larnaca suburb on May 27 following a surveillance operation.
AFP
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