Washington—The Agricultural Retailers Association (ARA) and The Fertilizer Institute (TFI) on March 14 filed the final legal brief in their lawsuit against the Occupational Safety and Health Administration’s (OSHA) reinterpretation of the Process Safety Management (PSM) retail exemption. ARA and TFI reiterated their position that OSHA’s PSM change adds new obligations to farm supply retailers and is not simply an “interpretive rule,” and therefore should have gone through notice-and-comment rulemaking before being implemented. The organizations also declined mediation, and requested that the court dispense with oral arguments and decide the case based on briefs filed by counsel. “We believe that oral arguments will only prolong the case and increase its cost,” said Daren Coppock, ARA president and CEO. “We also declined an offer of mediation. Our position is that either OSHA broke the law or they didn’t. That point can’t be mediated.” ARA and TFI filed the lawsuit on Jan. 22 with the U.S. Court of Appeals for the D.C. Circuit., and OSHA submitted its response brief on Feb. 19.

Santiago, Chile—Sociedad Química y Minera de Chile SA (SQM) issued a statement about Chile’s Royalty Tax Law on March 10 in order, it said, to clarify information published in the Chilean press in recent days. Regarding the Chilean law to establish a specific tax on mining activity, which was enacted in 2005 and modified in 2010, SQM stated it and its subsidiaries did not receive any benefits whatsoever in comparison to other mining companies that are subject to this law. “In the law and its modifications, it is clear that there is no special regimen, benefits, or economic advantages for SQM and its subsidiaries,” SQM said. During the first three years the modification to the law was in force, i.e., 2010 and 2012, SQM said it and its subsidiaries paid mining royalty taxes of approximately $75 million, compared to approximately $29 million for the three preceding years (2007 to 2009). The significant increase in the mining royalty taxes paid by the company was due both to an improvement in its operating results and the significant increase in the effective tax rates as a result of the change in the law, SQM said.

Tel Aviv—Israel Chemicals Ltd. (ICL) has decided on additional measures to strengthen the company’s financial position in light of a downgrade by the international rating agency Fitch, the significant deterioration in the potash market, and the continued weak outlook for the sector. ICL announced that it will pay out $67 million in the form of a cash dividend of $0.05 per share for the fourth quarter. However, the company’s board of directors will re-examine ICL’s dividend policy at its upcoming meeting. ICL is also planning a $320 million bond issue on the Tel Aviv Stock Exchange. ICL has decided on cost-cutting measures designed to reduce operating costs by a further $50 million in 2016. This is in addition to the previously announced measures designed to cut costs by $350 million in 2016. Capital expenditures will be reduced to $650 million in the coming years, down from the previous target of $700 to $800 million. In January the company had estimated operating profits of $800 to $1.1 billion, but this appears unrealistic in light of a decline in potash prices. ICL is seeking to stabilize its debt level. Fitch cited uncertainly in the potash market when it lowered its ratings for ICL. Fitch questioned whether a change in ICL’s investment policy and or a dividend cut would be sufficient to reduce its debt level. Fitch also estimated that potash prices would drop by 3 to 5 percent in 2016. Amir Arad, a chemical industry analyst at the Meitav Dash investment bank in Tel Aviv, expects ICL’s board will wait to see at what price the potash supply agreements with China are signed before taking action on the dividend. He also speculated that the decision to reduce capital expenditures would impact the Ethiopian potash project. Arad noted that the Ethiopian project was based on a potash price of $430/mt, which is currently far higher than current levels.

Amman—Arab Potash Co. (APC) reported a 31 percent increase in full-year 2015 net profit after taxes, provisions, and royalties, to JD131 million ($184.1 million), up from JD99.7 million in the previous year. APC Chairman Jamal Al Sarayreh said cost management policies, coupled with the rise in global potash prices during the first half of the year and increased production volume, raised the company’s profit margin to 40 percent in 2015 from 26 percent in 2014, resulting in increased profits despite lower year-on-year sales volumes and revenues. Potash production increased 12.6 percent to 2.355 million mt, up from 2.091 million mt in 2014, while sales volumes fell 2.2 percent to 2.189 million mt in 2015 from 2.239 million mt. APC did not disclose any revenue figures for full-year 2015.

Nederland, Texas—OCI Partner LP reported a drop in fourth-quarter and annual 2015 net income, citing lower ammonia and methanol prices, somewhat offset by lower natural gas prices. Fourth-quarter net income was $14.5 million on revenues of $88.4 million, down from the year-ago $30.9 million and $99.3 million, respectively. Both the ammonia and methanol plants were offline eight days during the quarter due to an electrical power outage. Ammonia production was 80,000 mt with an average weighted price of $378/mt, compared to the year-ago 68,000 mt and $568/mt, respectively. The average natural gas price dropped to $2.32/mmBtu down from $4.07/mmBtu. Full-year net income was down 57 percent, to $52 million on revenues of $309.4 million from the year-ago $119.4 million and $402.8 million, respectively. OCI produced 235,000 mt of ammonia at an average price of $425/mt, down from 2014’s 259,000 mt and $503/mt, respectively. The average gas price was down at $2.73/mmBtu from $4.52/mmBtu. Due to lower profitability and OCI projections of the next 12 months at prevailing prices, the company foresaw potential loan breaches starting in second-quarter 2016. As a result, it has renegotiated certain loan covenants with insurers, extending maturity dates and increasing interest rates on outstanding loans.

Tokyo—Mitsui & Co. Ltd. said it has reached an agreement to set up a company to produce and distribute imported fertilizers in Myanmar as part of a joint venture with Behn Meyer, a major distributor of chemicals in Southeast Asia. Mitsui & Co. (Asia Pacific) Pte. Ltd. and Behn Meyer Agricare Holdings (S) Pte. Ltd. reached the deal with Myanmar Agribusiness Public Corp. (MAPCO) through their newly-established Singapore-based investment company, BMM Venture (S) Pte. Ltd., in which Mitsui will own a 49 percent equity stake. The parties will set up Agri First Co. Ltd. (AFC) and plan to invest around Yen1.2 billion ($10.6 million) to build an NPK bulk blend fertilizer plant together with a warehouse, a bagging facility, and other equipment in Myanmar’s Thilawa Special Economic Zone, located on the outskirts of Yangon. Construction of the 100,000 mt/y plant is targeted to be completed in May 2017, with commercial operations to begin shortly thereafter. AFC plans to import various fertilizer products, such as NPK compound +TE (trace elements) and foliar fertilizers. Mitsui declined to comment on the anticipated initial import and distribution volumes. “We cannot disclose the details of our business plan now. But based on the results of our more than two-year feasibility study, we are certain it won’t take too much time to achieve at least 50,000-100,000 mt/y judging by the huge market potential in Myanmar as well as AFC’s vast local network,” a spokesperson for Mitsui told Green Markets. AFC combines BMM’s expertise in the production and distribution of specialty fertilizers, MAPCO’s networks with agricultural business operators in Myanmar, and Mitsui’s financing, logistics, procurement, and marketing capabilities, according to Mitsui’s press release. Early this year, Marubeni Corp. announced it would commence a fertilizer manufacturing and re-packaging business with a local partner in Myanmar’s Thilawa SEZ in January (GM Jan. 15, p. 13).

Scarborough, England—The first phase of junior U.K. potash company Sirius Minerals plc’s North York Potash project in northeast England could cost $3.56 billion to deliver the initial targeted 10 million mt/y capacity that could take five years to build, according to the long-awaited definitive feasibility study (DFS) for the project. However, the report, released March 17, showed that the operation has the potential to generate underlying annual earnings (EBITDA) of between $1 to $3 billion, depending upon volumes and price. Sirius said the mine could start production of polyhalite in the next five years and reach the 10 million mt/y target by 2023. There is potential to double capacity. The net present value of the project, located in the North York Moors National Park near Whitby, is currently $15 billion using a 10 percent discount rate, the DFS showed. This figure rises to $27 billion once the mine starts production. “Work is advancing with our financing partners globally to bring together the pieces of the initial financing for this project,” Chris Fraser, Sirius Minerals’ managing director, said. “This process is expected to take a number of months, but certain parts of the early construction activity, such as highway upgrades, are commencing soon to facilitate an efficient start of the project.” Sirius has secured take or pay offtake agreements for 3.6 million mt/y of the initial output for the first 5 to 10 years of production. It additionally has entered into various other commitments that bring the total volume allocated to customers (including customer expansion options) to 7.9 million mt/y. Sirius says it is confident of securing further commitments during the construction phase. Late last year, the company secured the final milestone in the planning approval process for the mining and transport licenses for the operation (GM Oct. 23, 2015).

Amsterdam—OCI NV said March 16 that its facility in Geleen, The Netherlands, has restarted production of all units. There was a production stop at the facility on Sept. 30, 2015, due to a fire in the basement of the calcium ammonium nitrate plant. On Oct. 8, 2015, OCI Nitrogen restarted one ammonia production unit, shortly followed by UAN and part of its melamine production. OCI said with the start of operations of the CAN lines, all units are now operational in time for the spring application in Europe. OCI said most of the damage, including damage to property and loss of business, is insured.

Deerfield, Ill.—CF Industries Holdings Inc. has consented to a change in its plans to buy certain assets of OCI NV (GM Aug. 10, 2015). On March 14, 2016, OCI NV announced that Consolidated Energy Ltd. (CEL) has entered into a binding agreement with OCI to acquire a 50 percent stake in Natgasoline LLC. The acquisition will be made via G2X Energy Inc., a subsidiary of CEL. Natgasoline LLC is developing a greenfield methanol project in Beaumont, Texas. CF, which entered into a combination agreement with OCI in August 2015, has consented to OCI’s entry into the agreement with G2X. As part of the consent, OCI agreed that CF has no further obligation to purchase an investment in the project under the combination agreement. CF is expected to have the option to participate in the project with a stake of up to 50 percent, to be determined at a future date. OCI and CF intend to enter into an amended combination agreement that will reflect G2X’s participation in the project, the revised capital structure, and the terms of CF’s option. Originally, CF was to take a 45 percent stake in Natgasoline, subject to financing, with an option to buy OCI’s remaining stake at some later time.