All posts by Dan Cole

AN Truck Blast Kills One in Arkansas, Injures Three Others

A tanker truck carrying ammonium nitrate exploded in southern Arkansas on the morning of March 27, killing the driver and injuring three firefighters, according to local media reports. The explosion occurred at 7:30 a.m. on U.S. Highway 287 west of Camden, according to KATV News. A statement from the Arkansas State Police confirmed the victim as Randall McDougal, 63, of El Dorado, who was employed by Blann Trucking Company of Hampton. Police said the truck was carrying ammonium nitrate from El Dorado to Texarkana.

The police statement said area fire department personnel were notified at about 6:40 a.m. that the truck’s brakes were on fire and the driver was attempting to extinguish the blaze. The first fire department personnel on the scene had begun to evacuate residents who live in the area and reportedly witnessed McDougal return to the truck when it exploded. The blast produced a large mushroom cloud and left a crater that spans the width of the highway, which remains closed until further notice. Nearby Highway 57 and Highway 24 were also closed, but Highway 24 has since been re-opened.

Koch’s Brandon Facility Down after Unplanned Outage

Koch Fertilizer Canada’s ammonia plant in Brandon, Man., went offline late on Feb. 8 and was still down on Feb. 10, according to local media outlets. The Brandon Sun reported that steam venting from the plant created loud banging noises at the time of the outage, alarming area residents.

A Koch compliance team leader told the newspaper on Feb. 10 that the facility was still in a holding pattern, and that no injuries were reported among the 300 employees who work at the site. He said notifications were sent to 911, the City of Brandon, and the fire department as part of standard procedure, The Brandon Sun reported.

IPL’s Phosphate Hill Production Impacted by Flooding

Australian fertilizer producer Incitec Pivot Ltd. (IPL) reported on Feb. 11 that it began a progressive shutdown of plants within its Phosphate Hill facility over the weekend due to flooding in northern Queensland brought on by a 100-year rain event.

IPL said its facility has not sustained any damage, but excessive flooding caused the closure of a rail line between Townsville and Phosphate Hills. IPL said it is continuing to run each plant for as long as possible given storage and input constraints, but it estimates that the impact of the rail closure will cause EBIT losses of approximately A$10m per week beginning on Feb. 9 and continuing until full production is resumed.

“IPL understands that the rail infrastructure provider is waiting for conditions to improve in order to allow full access to the rail line and assess when rail services are likely to resume,” the company said. IPL noted that the Townsville fertilizer distribution and port facilities suffered “only very minor damage and are operational.” IPL said it will provide an update when it receives a reliable estimate of the duration of the rail outage.

TFI, ARA Form Safety Alliance with OSHA

The Fertilizer Institute (TFI) and the Agricultural Retailers Association (ARA) announced on Feb. 4 that they have formed an alliance with the U.S. Department of Labor’s Occupational Safety and Health Administration (OSHA) to enhance workplace and community safety. The associations said the alliance will build upon the stewardship efforts of ResponsibleAg, a voluntary program created in 2014 by TFI and ARA to improve safety and security at agricultural retail facilities.

“Safety is a key priority for the fertilizer industry,” said TFI President and CEO Chris Jahn. “Through this alliance we will provide partner members and the public with information, guidance, and access to training resources to help them protect the health, safety, and security of workers, emergency responders, and the communities surrounding agricultural retail and supply facilities, with a particular focus on the safe storage and handling of fertilizers.”

The alliance will remain in effect for two years, with representatives from each organization meeting periodically to discuss the responsibilities of the participants, share information on activities, and track results in achieving goals. The alliance said it has already completed its first project with the launch of a training video showing a mock agricultural retail facility inspection. The video was filmed at the ResponsibleAg training facility in Owensboro, Ken.

Additional objectives include the sharing of information on OSHA’s National Initiatives, and opportunities to participate in initiatives and the rulemaking process; sharing information on occupational safety and health laws and standards, including the rights and responsibilities of workers and employers; speaking, exhibiting, and/or appearing at OSHA, TFI, and ARA conferences, local meetings, or other events, including the OSHA Alliance Program Forum; sharing information among OSHA personnel and industry safety and health professionals regarding TFI and ARA good practices or effective approaches through training programs, workshops, seminars, and lectures; and encouraging TFI local sections and ARA members to build relationships with OSHA regional and area offices to address health and safety issues, including the safe storage and handling of fertilizers.

“Safety is much larger than one person or one company,” said ARA President and CEO Daren Coppock. “Safety also means being a good steward – a good steward of the land, business, employees, and the communities in which we operate. This alliance is a positive step for ARA, TFI, and OSHA to work together on an issue that is top of mind for ag retailers.”

PolyNatura, Nitron Announce Polyhalite Offtake Agreement

PolyNatura Corp. and Nitron Group LLC announced on Jan. 23 that they have entered a “take-or-pay” offtake agreement for the supply of multi-nutrient polyhalite products from PolyNatura’s greenfield mine in Lea County, New Mexico.

Under the agreement, subject to customary terms and conditions, Nitron will purchase 75 percent of PolyNatura’s production, or 1.5 million tons annually at peak production, over a five-year period commencing from first production.

“We are excited to partner with one of the most respected names in the global fertilizer industry,” said Graham Wheelock, managing director of PolyNatura. “Financial strength, geographic reach, and deep industry knowledge make Nitron the ideal partner to distribute our organic fertilizer globally, enabling farmers around the world to improve crop yields and quality.”

PolyNatura, an affiliate of the Cartesian Capital Group LLC, New York, owns the Ochoa Project in the Permian Basin in New Mexico, which the company said has large, low-cost, proven reserves of polyhalite, and is the only naturally occurring scale deposit of polyhalite in the Americas. Cartesian acquired its stake in the Ochoa Project in 2017 (GM Aug. 18, 2017) from IC Potash Corp., Toronto.

According to its website, PolyNatura’s initial plan was to mine and process polyhalite to produce potassium sulfate, but the company is now focused on the production of “direct application polyhalite.”

Headquartered in Greenwich, Conn., Nitron is a global fertilizer trader and distributor. The company, which was founded in 1982, said it sold 7 million tons of fertilizer in 2018, and has clients in 65 countries.

“Our mission at Nitron is to provide high-quality products to meet the growing demands of our clients around the world,” said Nitron President Javier Urrutia. “This offtake agreement with PolyNatura will enable us to distribute an important organic fertilizer throughout the Americas and other key markets.”

MMTC Urea Numbers Show Drop in Market

The MMTC urea tender closed with 22 companies offering 2.8 million tons. The lowest West Coast price was from AgriCommodities at $289.80/mt CFR, while the lowest East Coast price was from Midgulf at $295.80/mt CFR. These prices compare with $333/mt CFR West Coast and $335/mt CFR East Coast.

The low for the West Coast has a netback to the Arab Gulf of $275-$276/mt FOB. The lowest price to the East Coast shows a netback to China of $280-$281/mt FOB. The MMTC offers pushed back against the low estimated netback from the TCP/Pakistan tender of last week.

Three Arab Gulf producers offered a total of 245,000 mt at $290-$293/mt FOB. These prices reflected the Arab producers pushing for higher prices from the generally accepted levels in the $280s/mt FOB.

In the run-up to the tender, only ADNOC of the UAE was reported to have any large quantities available for offer. Qatar and Bahrain each reportedly had about 80,000 mt available, with the Saudis and Oman both claiming they were sold out. The Omani material is reportedly reserved for Ethiopia, but questions about the ability of that Africa country to pay for the product might make the product available to India.

EPA Unveils Narrower WOTUS Definition

The U.S. Environmental Protection Agency and Army Corps of Engineers on Dec. 11 unveiled a new Waters of the U.S. (WOTUS) rule that more narrowly defines the types of waterways that fall under Clean Water Act jurisdiction. The new definition would replace a 2015 rule that has seen multiple legal challenges and strong opposition from the Trump administration.

“The fertilizer industry is encouraged by EPA’s and the Department of the Army’s new WOTUS definition, a great first step towards a sustainable national water policy that both protects the environment and facilitates smart economic development,” said Chris Jahn, president and CEO of The Fertilizer Institute (TFI). “We believe the new plan more clearly defines which waters are subject to federal jurisdiction, which waters are subject to state protection, and how the rule will be implemented, clarity that was not found in the 2015 rule.”

The new definition lays out six specific water categories that would remain under Clean Water Act jurisdiction, but excludes any water bodies outside of these categories. Acting EPA Administrator Andrew Wheeler said the new definition provides a “clearer and easier to understand” definition that will result in “significant cost savings, protect the nation’s navigable waterways, and reduce barriers to important economic and environmental projects.”

EPA said it plans to publish the proposed rule immediately for a 60-day public comment period. For more details on the new WOTUS definition, see the Dec. 14 issue of Green Markets.

Nutrien Closes Sale of Equity Position in APC

Saskatoon-based Nutrien Ltd. announced on Oct. 24 that it has completed the sale of its minority equity investment in Arab Potash Company (APC) to China’s state-owned SDIC Mining Investment Co. Ltd., Beijing, for gross proceeds of $502 million.

Completion of the APC sale was required by the Competition Commission of India and Ministry of Commerce in China in providing their clearance for the merger of Agrium and PotashCorp to form Nutrien. APC is a traditional supplier of potash to China, agreeing to sell about 700,000 mt/y in a contract inked last year (GM Aug. 3, 2017).

Nutrien announced in July (GM July 27, p. 1) that it had entered into a definitive agreement with SDIC to sell its 23,294,614 common shares of APC, which represents the entirety of Nutrien’s 28 percent holdings in APC. Nutrien was the largest APC shareholder, according to Bloomberg. Other majors include the Government of Jordan at 26 percent, Arab Metals Co. at 20 percent, Social Security Corp. at 10.4 percent, and the Government of Iraq at 4.7 percent.

APC said it is the eighth largest potash producer worldwide. Capacity is put at approximately 2.5 million mt/y, according to the Green Markets Global Potash Quarterly.

New Postings Announced for Trio®, Ammonium Sulfate

Effective Oct. 8, Intrepid Potash Inc. announced a domestic fall fill program on all grades of Intrepid Trio® for the U.S., Canada, and Mexico. The company’s postings FOB Carlsbad, N.M., moved to $250/st for premium, $235/st for granular, $220/st for standard, $305/st for OMRI granular, and $280/st for OMRI standard. The new prices are effective for orders taken through Oct. 31, with the shipping period extending from Oct. 8 through Dec. 31, 2018. Effective Nov. 1, a $15/st increase will take effect for all Trio grades and all regions.

Also on Oct. 8, AdvanSix announced a new price increase for its ammonium sulfate grades in the Midwest. The company’s granular postings firmed on that date to $270/st FOB Granite City, Ill; $275/st FOB East Dubuque, Ill., Prairie du Chien, Wisc., and Roseport, Minn.; $280/st FOB Danville, Ill., and Amherst Junction, Wisc.; and $285/st FOB Sioux City, Iowa. The NOLA barge posting for granular firmed to $235/st FOB. Those levels reflect a $15/st increase from AdvanSix’s Aug. 31 postings.

Mid-grade postings from AdvanSix also firmed $15/st on Oct. 8, moving to $240/st FOB Danville and Byron, Ill., and $245/st FOB Roseport. The company’s rail-DEL postings in Illinois, Wisconsin, and in Iowa and Minnesota east of Interstate-35 moved up as well, to $285/st for granular and $250/st for mid-grade.

Yara Secures Ownership of Brazil P/SSP Company

Oslo-based Yara announced on Oct. 5 that it has reached an agreement to acquire the minority interest in Galvani Indústria, Comércio e Serviços S.A. from the Galvani family. As part of the deal, certain assets will be transferred to the Galvani family, who will also receive a payment in cash and a contingent amount. Yara will thereby own 100 percent of the shares in Galvani Indústria, Comércio e Serviços S.A.

This deal streamlines our production footprint in Brazil, securing full ownership of key Yara Brazil production assets, complementing its extensive distribution capabilities and achieving a more integrated position in the Brazilian market,” said Lair Hanzen, executive vice president, Yara Brazil.

Yara Brazil will own 100 percent of the industrial unit in Paulínia with integrated Single Super Phosphate (SSP) production and a fertilizer bulk blend facility, and the Serra do Salitre project with an annual production capacity of approximately 1.2 million mt of phosphate ore and 1.5 million mt of SSP equivalent finished fertilizers.

Yara said the agreement includes a cash payment of US$70 million over a three-year period from closing, and a conditional future payment related to project success. The production unit in Luis Eduardo Magalhães and the mining units in Angico dos Dias and Irecê, as well as the Santa Quitéria greenfield phosphate project, will be separated out from Galvani Indústria, Comércio e Serviços S.A and will be fully controlled by a new company managed by the Galvani family. The carved-out assets transferred to the Galvani family have a book value equivalent to US$95 million as of Aug. 31, 2018.

Yara said the transaction is subject to conditions precedent that still need to be met, as well as the approval of the Brazilian antitrust authorities (CADE) and other common approvals.