Tel Aviv—The bankruptcy of Spain’s huge Abegona construction company has led to delays in the completion of Dead Sea Works’ new power plant at the Dead Sea, according to The Calcalist economic newspaper. The 250 megawatt power plant will replace an existing 110 megawatt plant and supply electricity to Dead Sea Works and other Israel Chemicals Ltd. production plants at the Dead Sea. It will replace an existing 110 megawatt plant. The new plant was due for completion by the end of last year, but the report said that it is not likely to be operational before the third or fourth quarter of this year at the earliest.
All posts by 2192
ICL, Albemarle to develop flame retardants
Tel Aviv—Israel Chemicals Ltd. (ICL) has signed an agreement with Albemarle Corp., Baton Rouge, La., for the joint development of flame retardants. The long-term agreement is for the supply of polymeric flame retardant. The product is manufactured by ICL at production facilities in the Netherlands and Israel using technology licensed from Dow Global Technologies LLC. As part of the agreement, Albemarle will supply ICL with bromine for a new generation of flame retardants.
Israel seeks to speed up mine approval process
Tel Aviv—Israel’s Finance and Energy and Water Ministries are planning to bring the proposal for developing the Sde Barir phosphate field to the country’s National Planning Commission instead of the regional commission in an attempt to speed up the process. The move is expected to make objections to the project by the city of Arad, environmental groups, and the Health Ministry more difficult to lodge. Finance ministry sources stressed that the ministry views the Sde Barir phosphate field as a national project that would have tremendous economic impact on the Israeli economy for years to come. That being the case, the sources said the ministry is making every effort to move the project forward as quickly as possible. The move comes days after the Arad Municipality appealed to Israel’s Supreme Court against the preliminary approval of the Sde Barir mining project.
Threats spur calls for action in Israel
Haifa, Israel—The battle for closing down Haifa Chemicals’ 12,000 mt ammonia storage facility has intensified. Haifa Mayor Yona Yahav has called on the Israeli government to remove the facility from the city, noting that the recent threat by the Hezbollah militia to fire missiles at the site (GM Feb. 19, p. 13) put as many as a million people in danger. Mayor Yahav stressed the dangers from the ammonia in the event of a war. The mayor has been leading a campaign to get the facility shut down, as well as against pollution levels from the refining, petrochemical, and chemical industries that are located in the Haifa Bay region. Israel’s Environmental Protection Ministry issued a statement that the final tender for construction of an ammonia plant would be issued by the end of March. The ministry said the main issue delaying construction of a plant in southern Israel is the high price of domestic natural gas. Back in 2013 the Israeli government approved the closing of the facility and the setting up of a 120,000-150,000 mt/y ammonia plant.
OCP creates OCP Africa
Marrakech, Morocco—OCP Group on Feb. 25 officially announced the creation of a new subsidiary, OCP Africa. OCP says the new entity aims to contribute to meeting the challenge of creating structured, efficient, and sustainable agriculture on the continent of Africa by providing agricultural producers with all the resources they need in order to succeed: suitable, affordable products, services and partnerships, logistics, and financial solutions. The company says it will make a massive investment in research and innovation and is strengthening its agronomic skills to serve sustainable, precision agriculture. A first fertilizer production unit, with a capacity of 1 million mt/y, the African Fertilizer Complex (AFC), was inaugurated Feb. 1 (GM Feb. 5, p. 14), with more industrial projects expected in sub-Saharan Africa close to consumer markets. The company is putting in place, both internally and with its local partners, storage and blending facilities in ports and close to consumer areas. The company also plans to implement several local and international partnerships in order to provide farmers with a complete range of products and services working towards an increase in both yield and income. OCI Africa plans to open about 15 subsidiaries in Africa over the coming months, with offices in 16 countries. The objective is to commit specifically in each country, taking into account the diversity of geographies and the maturity of their markets. The company said it expects to employ a staff of 240 by the end of 2016, with some 15 nationalities already represented.
Cargill cuts input sales to Black Sea region
Wayzata, Minn.—Cargill Inc. plans to stop selling crop inputs, including seed, crop protection products, and fertilizer, in the Black Sea region by the end of May. Countries affected include Russia, Ukraine, Romania, and Hungary. “The company will refocus its attention on its grain and oilseeds origination, merchandising, and trading activities in these markets,” Cargill said in a statement. Up to 180 employees may be affected. Cargill will continue with Cargill AgHorizons, its ag input business in the U.S. and Canada, which operates a grain buying/input network.
Worker dies suddenly at ICL’s Boulby mine
Cleveland, U.K.—Emergency services were called to Israel Chemicals Ltd. UK’s (ICL UK) Boulby potash mine in northeast England on Feb. 22 after the “sudden death” of a 53-year-old man. Police were called to the mine at around 2:00 p.m. local time. “Everyone at the mine is deeply saddened by this tragic incident,” said ICL UK. “The police have made clear the death is not being treated as suspicious. We will, of course, provide any information which the coroner may require.” Employees at the mine were sent home after news of the incident emerged, but a spokesperson for ICL UK said the mine was working normally again as of Feb. 23.
Samarco executives accused of homicide
Minas Gerais, Brazil—Six Samarco Mineraçao SA executives and an engineer have been accused of homicide by Minas Gerais state police in relation to the collapse of the Fundão tailings dam last November, in which 17 people are confirmed dead and two are still missing (GM Nov. 20, 2015; GM Jan. 29, p.17). Samarco CEO Ricardo Vescovi, who temporarily stepped down in January, is among the accused. Also accused is an employee of engineering consultancy firm VogBr, who allegedly signed off on a stability study on Fundão last year. The executives are reportedly also facing accusations of polluting drinking water and unintentional flooding. In Brazil, only prosecutors can legally bring criminal charges, but it is understood that police accusations often precede formal charges. Samarco has said it considered the charges “erroneous” and would wait for a decision from the courts before taking further measures. Co-owners Vale SA and BHP Billiton Ltd. did not comment on the charges, stating that independent investigations were still underway to determine the causes of the accident. Various media reported this week that a Brazilian judge has blocked R$500 million-worth (US$126 million) of the iron ore miner’s assets to guarantee the clean-up and repair following the tailings dam collapse. The move is understood to have been made by Minas Gerais state prosecutors. Vale said on Feb. 23 it had been summoned in the public civil action filed by authorities in Espírito Santo state against Samarco and its shareholders, claiming, among others, an injunction for the attachment of assets of the respondents in relation to costs and damages relating to the dam failure.
BHP posts $5.67 B loss, no hurry for Jansen
Melbourne—BHP Billiton Ltd. reported a US$5.67 billion attributable after-tax loss for the first-half ending Dec. 31, 2015, of its financial year, a 222 percent year-on-year downturn. The fiscal result includes US$6.13 billion of exceptional charges after tax. BHP also announced that it would implement a new operating model aimed at creating “a more agile company” that was ready to respond to the challenges and opportunities presented by a rapidly changing global marketplace. The exceptional charges include US$1.2 billion (US$858 million after tax) for costs associated with the November dam failure at the Brazil-based Samarco Mineraçao SA iron ore joint-venture, in which the group holds a 50 percent interest (GM Nov. 20, 2015). Of the Samarco-related charges, US$655 million relates to BHP’s share of the miner’s $1.3 billion provision for costs related to the dam incident. The balance comprises a US$525 million impairment to reduce the value of BHP’s investment in Samarco to zero, a decision the group said did not reflect its views on the potential restart of the mine, but rather the present uncertainty surrounding the nature and the timing of future cash flows that BHP would receive from the miner. Dean Dalla Valle, BHP’s chief commercial officer, has been assigned to lead the group’s response to the incident and will be based in Brazil. The executive will retain responsibility for the Jansen Potash Project in Canada. CEO Andrew Mackenzie said BHP still wants to build the Jansen mine despite a severe bear market for the crop nutrient, but “it does not seem likely to happen any time soon.” The project was 54 percent complete as of Dec. 31, 2015 (GM Jan. 28, p.15). Mackenzie said BHP probably will not be ready for a push to production until the potash market recovers, which it does not see happening until the 2020s.
CHS 2016 patronage payment $519 million
St. Paul, Minn.—CHS Inc. said Feb. 24 that it will share in an estimated $519 million cash distribution to members in 2016 based on $781 million in earnings reported for the year ending Aug. 31, 2015 (GM Nov. 30, 2015). FY2015 earnings were down 28 percent from FY2014‘s $1.1 billion, reflecting singular events as well as lower margins in CHS Energy and Agriculture segments. FY2015 patronage payments were $533.8 million based on FY2014 earnings. However, CHS noted that between FY2012-2016 (based on FY2011-2015 earnings), CHS has distributed a total of $2.7 billion in cash, a $544 million annual average.