West Perth—Australian potash junior Danakali Ltd. said it has raised A$5.5 million (US$4.2 million) from investors to fund work at the Colluli potash project in Eritrea, East Africa. The company raised the funds through the placement of 25 million shares at 22 Australian cents each with its largest shareholder, Hong Kong-based investment vehicle Well Efficient Ltd. The funds raised will be used to start front-end engineering and design (FEED) work at Colluli and initiate the mine contract tendering process, as well as complete the mining approvals process and secure offtake agreements and further strategic relationships and working capital. “Danakali is now well funded and can focus on progressing Colluli throughout 2016, including the securing of project funding and offtake,” said Paul Donaldson, Danakali’s managing director. The development cost of the first phase of the Coluli project to produce some 425,000 mt/y of sulfate of potash was put at US$298 million, according to the definitive feasibility study completed late last year, and which is currently targeted for commissioning in the fourth quarter of 2018 (GM Dec. 4, 2015). Danakali is 50:50 partnered in the project by the Eritrean National Mining Corp.
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Korab phosphate project gathers momentum
West Perth—Australian junior resources firm Korab Resources Ltd. said it has received a letter of intent from an Indian company to buy multiple 10,000 mt cargoes of phosphate rock from its Geolsec project in the Northern Territory. The Indian company also has indicated its intention to seek a long-term contract. The project developer already has received a number of other expressions of interest for Geolsec rock. These include the supply of between 80,000-90,000 mt/y in three separate transactions, as well as another for 100,000 mt/y. Korab in November also secured a heads of agreement for the offtake of 250,000 mt with Queensland-based DPA Oceania Pty Ltd. This offtake deal would see Korab supply 50,000 mt/y over a five-year period. As a result of the level of interest from potential buyers, Korab in late February announced it had submitted an expanded mining plan. The mine, which Korab is developing through a wholly-owned subsidiary, Geolsec Phosphate Operations Pty Ltd., is located about 70 km south of Darwin port, and is close to the Stuart highway and a few kilometers from the Darwin-to-Adelaide railway line. Earlier this month, Korab said it hopes to begin mining as soon as sales contracts can be signed but the mine will not run through the whole year, opening and closing depending on demand from buyers. Korab secured the license to mine phosphate from its Geolsec project in July 2014 (GM July 2, 2014).
ResponsibleAg launches PSM compliance tools
Washington—ResponsibleAg has developed a toolkit of online materials to help agricultural retailers comply with the Occupational Safety and Health Administration’s (OSHA) Process Safety Management (PSM) standard. OSHA issued a revised interpretation of the PSM’s “retail exemption” last summer that much more narrowly defines the term “retail facility” as an establishment that sells chemicals only in “small packages, containers, or allotments.” As a result, many retail facilities that sell bulk anhydrous ammonia and previously claimed the exemption were told they would now have to come into full compliance with the procedural, operational, and organizational design standards of the PSM standard, which OSHA says it will now enforce on Oct. 1, 2016. The ResponsibleAg materials were developed with assistance from the Asmark Institute, ARA, TFI, and OSHA, and are available at www.responsibleag.org. “A rule of PSM’s scope and depth creates incredible compliance challenges for small businesses, and we urge retailers to take advantage of this opportunity,” said ResponsibleAg Executive Director Bill Qualls. “Given the time involved in compliance, and the seasonal nature of the retail business, being ready for PSM compliance in September necessitates becoming involved now.”
OSHA provides SDS guidance for fert blends
Washington—According to the Agricultural Retailers Administration (ARA), the Occupational Safety and Health Administration (OSHA) has responded to a letter from ARA and The Fertilizer Institute (TFI) seeking clarification on whether custom blends of fertilizer are required to have labeling and safety data sheets (SDS) under the Hazard Communication Standard (HCS) of 2012. The letter, which was submitted to OSHA in June 2015, also asked if agricultural retailers are required to prepare new SDSs for each custom fertilizer blend; if agricultural retailers can use a single generic SDS for multiple blends; and what OSHA recommends as guidance to accommodate custom blending operations if a generic SDS is not compliant with HCS 2012. ARA said OSHA responded by saying custom blending is considered chemical manufacturing, and does require individual labels and SDSs; and a single generic SDS is allowed for complex mixtures with similar hazards, but the concentration ranges used on a generic SDS must meet the intent to disclose the actual concentration range. ARA said OSHA also gave guidance that it believes including an HCS pictogram on a tanker or rail car is not in conflict with Department of Transportation regulations.
Israel weighs NH3 storage options
Tel Aviv—Israel’s Environmental Protection Ministry is looking for an interim solution to shut down the ammonia storage plant in Haifa. The ministry said that it is considering two options: transferring the ammonia to a ship eight kilometers off the Mediterranean Coast of Haifa, or using special tanker trucks that would deliver the ammonia directly to customers throughout Israel. A decision on a temporary solution until a proposed ammonia plant is built in southern Israel is expected to be taken within three to four weeks. The ministry said that the aim is to shut down the existing storage facility, which is located near populated areas in Haifa and is viewed as a security risk. There is also concern that the setting up of an ammonia plant would be uneconomical due to the high price of domestic natural gas. Israel’s Energy and Water and Finance Ministries are looking into various ways of subsidizing the price. Senior Environmental Protection Ministry sources said that the ministry will do everything in its power to find a short- and long-term solution to meet domestic ammonia demand. Earlier this month the Environmental Protection Ministry decided to postpone the deadline for the new ammonia plant in southern Israel until mid-May. The ministry set May 16 as the final day for bids to be presented. The initial deadline had been set for the end of March.
ICL acquires phosphate technology
Tel Aviv—Israel Chemicals Ltd. (ICL) has acquired a new technology for recycling phosphate. The company said the technology was acquired from Germany’s SGL Carbon GmbH, and could enable it to manufacture several forms of phosphorus derivatives out of waste ashes and reduce the demand for phosphates by several of ICL’s subsidiaries. The technology was developed by SGL in a consortium with other companies and funded by the European Union. A small-scale pilot was conducted in Austria as part of a two-year development project. ICL decided to acquire the inductive heating of phosphorus technology after hearing that it was up for sale since it fit with the company’s sustainability strategy and could provide a game-changing technology in this field. According to ICL Vice President for Business Development Kees Langeveld, the current plan calls for a larger pilot plant to produce 150 mt/y of elementary phosphorus a year. A final decision has not yet been taken on where the pilot will be located, but sites at ICL subsidiaries in Holland and Germany are under consideration. Langeveld said that if constructing the plant in Europe due to CO2 emissions presents a problem, the plant could be built in the U.S. The timetable calls for an 18-month pilot stage followed by a full-scale commercial module that Langeveld estimates could be up and running in 2019. He adds that eventually four units could be built with a production capacity equivalent to 400,000 mt/y of ash. “This volume would replace several hundred thousand tons of phosphate,” he estimated. The planned investment in the project is put at $100 million plus. If successful, Langeveld said the technology could be adapted at other ICL plants. The phosphorus and derivatives produced by the technology is earmarked for production of fire retardants, auto industry additives, purified phosphoric acid for industrial applications, and specialty fertilizers.
GNFC, EcoPhos form jv for DCP production
Bharuch & Louvain-la-Neuve—India’s Gujarat Narmada Valley Fertilizers & Chemicals Ltd. (GNFC) and EcoPhos SA, Belgium, have signed a joint venture agreement to build a 200,000 mt/y animal grade dicalcium phosphate plant at GNFC’s Dahej site in Gujarat. The two companies signed a memorandum of understanding for the jv in August 2014. EcoPhos will take an 85 percent stake in the company, to be named EcoPhos GNFC India Pvt Ltd., with the balance to be held by GNFC. The cost of the project is an estimated R5.26 billion ($78 million), according to a Bombay Stock Exchange filing March 12 by GNFC. The main driver for the project on GNFC’s side is to consume around 150,000 mt/y of hydrochloric acid produced as a by-product from GNFC’s new 50,000 mt/y toluene diisocyanate plant at Dahej. EcoPhos will provide the license, engineering services, and proprietary equipment for the project and will market the dicalcium phosphate. According to EcoPhos CEO and founder Mohamed Takhim, the project is a substantial step in the realization of EcoPhos’ target to become the global market and cost leader in animal feed phosphates through its Animal Feed division.
Borealis to upgrade Linz facility
Vienna—Borealis has announced a new round of investments in its melamine and fertilizer production facilities in Linz, Austria. The heart of the so-called “Linz 2020” program is an €80 million investment package to boost the overall long-term competitiveness of the Linz location. Goals include improving plant efficiency and achieving better environmental performance by installing and implementing state-of-the art equipment and processes. During 2010-2014, Borealis invested some €145 million to modernize the facility. Building on those upgrades, a variety of additional upgrades are scheduled for completion by 2019. Most are infrastructure-related. The renovation and upgrade of fertilizer storage facilities includes the replacement of ageing equipment that, among other things, will help further reduce dust emissions and enhance overall energy efficiency. “Linz is already a role model for other Borealis fertilizer facilities when it comes to production reliability and performance,” said Mark Garrett, Borealis CEO. “What is more, it is also a crucial component of our global growth strategy in fertilizers. ‘Linz 2020’ is a four-year investment program which will result in enhanced competitiveness now and many years down the road.” The largest Borealis fertilizer production facility in Europe is in Linz, which is also the center of melamine production. In addition, around 50,000 mt of melamine per year are produced at two plants located in the Linz Chemical Park. Major base chemicals produced at Linz include NPK and CAN.
Toyo selected for Chambal project
Tokyo—Toyo Engineering Corp. has been awarded a contract for a project by Chambal Fertilisers and Chemicals Ltd. (CFCL) to construct a large-scale fertilizer complex in Kota, Rajasthan, India. The complex will have an ammonia plant with capacity of 2,200 mt/d, and a urea plant with capacity of 4,000 mt/d. Toyo valued the project at US$600 million and said it is expected to be complete in early 2019. Ammonia production technologies will be supplied by KBR Inc., Houston, and Toyo’s urea synthesis technology – “ACES21®” – will be employed. Meanwhile, Toyo-India has been independently awarded contracts for onshore engineering, procurement, and construction works for the project. Toyo completed another fertilizer complex for CFCL in 1999 that has been in steady operation ever since. Toyo said while this is its second project for CFCL, it is the 15th fertilizer project it has constructed in India since 1962.
Indorama Eleme plant set for commissioning
Port Harcourt, Nigeria—Indorama Eleme Fertilizer & Chemicals Ltd. (IEFCL) reports that its new $1.4 billion ammonia and urea plant at Port Harcourt is set for commissioning. The plant has design capacity to produce 2,300 mt/d of ammonia and 4,000 mt/d (1.4 million mt/y) of granular urea, and has been built within the perimeter of sister company Indorama Eleme Petrochemicals Co.’s existing petrochemicals site. Both companies are part of the Singapore-headquartered Indorama Corp. KBR supplied the purifier process technology for the ammonia plant, while the urea plant will use Toyo’s synthesis technology. An 83-km pipeline to supply NGL feedstock has been completed as part of the project. The new output will substitute some of Nigeria’s and other West African countries’ urea imports and help address growing demand for the fertilizer. IEFCL says it will also target North and South American markets. A new export terminal at Onne has been built and includes a 45,000 mt-capacity urea storage unit. The transfer of urea from the plant will be via an existing road network.