All posts by hlancey@bloomberg.net

BHP Reports Jansen Stage 1 38% Complete

News Briefs, Saskatchewan

BHP Group Ltd. reported on Jan. 18 that its Jansen Stage 1 potash project in Saskatchewan is 38% complete, up from 32% on Sept. 30, 2023 (GM Nov. 3, 2023). First production remains on target for the end of calendar year 2026. Once fully ramped up, Jansen Stage 1 will have capacity to produce 4.15 million mt/y of potassium chloride.

BHP’s Board on Oct. 31, 2023, gave the go-ahead for Jansen Stage 2, which will add another 4.36 million mt/y of potassium chloride production capacity when completed (GM Nov. 3, 2023). The group is targeting first production of the second stage in FY2029.

In its operational review for the half year to Dec. 31, 2023, BHP said it expects operational expenditure related to its potash activities to be around $130 million in the second half of its fiscal year 2024, which ends on June 30. BHP has put its total expected capex for Jansen Stage 1 at $5.723 billion and for Stage 2 at $4.859 billion.

Longer term, Jansen has the potential for two additional expansions to reach an ultimate production capacity of 16-17 million mt/y, subject to studies and approvals.

Bion Touts New Patent to Broaden ARS Tech

Ammonia, California, Germany, News Briefs, U.S.

New York City-based Bion Environmental Technologies Inc. on Jan. 16 announced the receipt of a new patent that broadens its Ammonia Recovery System (ARS) claims to include industrial and municipal wastewater streams.

“The timing of this patent couldn’t be better; it underscores the broad applications of our ammonia recovery technology,” said Bill O’Neill, Bion CEO. “We’ve already seen results at Fair Oaks that demonstrate we can configure the ARS for the economics of industrial waste streams. It’s an opportunity that could both jumpstart and shorten our drive to commercialization and give us a stronger platform to launch our sustainable beef initiatives.”

Bion’s ARS was developed to recover the volatile ammonia in livestock waste streams, with a focus on the discharge from an anaerobic digester (AD), where biogas is produced. Bion recently optimized the ARS at its Fair Oaks, Ind., facility for the final design process for full-scale animal waste systems. With this fifth patent, Bion’s IP now covers organic waste streams from industrial and municipal sources as well.

Bion said that according to the American Biogas Council, the US has more than 2,400 AD sites producing biogas, with a development potential for 15,000 new sites. Bion intends to establish strategic partnerships to market the ARS as a stand-alone AD nitrogen control solution in two sectors: Industrial and Municipal Wastewater and Animal Waste.

Bion saidAD is now used at 1,269 water resource recovery facilities in the US, with another 102 stand-alone systems that digest food waste. The Council estimates an additional 8,600 sites with development potential. Germany, by comparison, has almost 10,000 operating AD sites.

In the US, wastewater and AD digestate from industrial and municipal sources is already regulated for ammonia and nitrates, and EPA recently proposed tougher standards for slaughter facilities. Bion believes ARS ammonia treatment costs will be competitive in these markets and that its unique premium fertilizer byproducts will create an advantage, especially with waste streams that are still considered organic, like slaughter and food waste.

Bion said there are 473 animal waste digesters operating in the US, most on dairy operations. The Council and USDA’s AgSTAR program estimate more than 8,000 additional sites with development potential. Bion said ARS was designed specifically for this purpose: control ammonia from livestock waste and produce the highest value byproducts with it.

Bion has already received an OMRI-listing (Organic Material Review Institute) for its initial fertilizer product and is preparing applications for several more.

Digestate from animal waste AD has enjoyed the same reduced regulatory requirements as land applying raw manure. Recent trends in Michigan and California indicate they will treat animal waste digestate as any industrial source, subject to groundwater permitting requirements. Bion believes its proven technology and value-added fertilizers will give it a significant competitive advantage in this evolving market.

8 Rivers Project to Use Casale Tech

Blue Ammonia, Carbon, News Briefs, South Korea, Switzerland

Casale SA, Lugano, Switzerland, announced on Jan. 18 that it will be the licensor of the blue ammonia synthesis facility at 8 Rivers Capital LLC’s proposed $1 billion Cormorant Clean Energy Project in Port Arthur, Texas (GM Jan. 12, p. 1). The project will produce 880,000 mt/y of low carbon ammonia and capture 1.4 million mt/y of CO2 with a >99% capture rate.

As reported last week, ammonia produced from the plant will be sold at auction in South Korea, which has prioritized the fuel as a feedstock for coal-fired power plants. Fluor Corp., Irving, Texas, was awarded a contract for front-end engineering and design (FEED) and procurement services for the project last fall (GM Oct. 13, 2023).

Uralchem Inks MAP, NPK Agreement with China

China, DAP/MAP, News Briefs, NPK, Russia

Russia’s Uralchem Group and China’s Xinjiang Golden Pomegranate Import and Export Co. Ltd., an importer of mineral fertilizers, have signed a Memorandum of Understanding (MOU) for the supply of MAP and NPK fertilizers to China from 2024 through 2026.

Uralchem announced the agreement on Jan. 18 and said it expects the total volume of supplies to reach 600,000 mt in three years. The shipments will be made by rail. The MOU was signed on Jan. 13 in Xinjiang Uyghur Autonomous Region’s capital Ürümqi, in northwestern China.

Cinis, Itochu Sign Purchasing/Sales LOI

Asia, Japan, News Briefs, Sulfate of Potash, Sweden, U.S.

Swedish green technology company Cinis Fertilizer announced on Jan. 15 that it has signed a letter of intent (LOI) with Japan’s Itochu Corp. to cooperate on the sale of Cinis’ potassium sulfate (SOP) and sodium chloride products, as well as on the purchase of potassium chloride and sodium sulfate, inputs used in Cinis’ production.

The companies intend to enter into binding sales and delivery agreements and to study conditions for producing environmentally friendly mineral fertilizers in Asia, Lund-based Cinis said in a media statement. The LOI also includes seeking a location for a production facility in Asia and is aimed at Cinis establishing operations in Asia.

“We are still at an early stage in this collaboration,” said Cinis Fertilizer Founder and CEO Jakob Liedberg. “However, there is great potential for our environmentally friendly potassium sulfate, and with a partner like Itochu we should be able to quickly establish our circular business model also in Asia.”

Cinis is currently building its first production facility for 100,000 mt/y of SOP and sodium chloride near the town of Örnsköldsvik in Sweden, with a planned start-up in early 2024. In November, the company said it had decided to prioritize the construction of its planned 300,000 mt/y SOP facility in Hopkinsville, Ky., before a facility in Skellefteå, Sweden (GM Nov. 10, 2023).

In addition to the potential Asian plant, Cinis currently plans six production facilities to be in operation by 2030 with a total production capacity of about 1.5 million mt/y.

Dyno Nobel Inks MOU for Saudi TAN Plant

Africa, Ammonium Nitrate, Europe, Middle East, News Briefs, Saudi Arabia

Incitec Pivot Ltd. (IPL) reported on Jan. 15 that its subsidiary, Dyno Nobel Asia Pacific (DNAP), has signed a non-binding Memorandum of Understanding (MOU) with Saudi Chemical Company Ltd. (SCCL) and a Saudi investment firm to pursue the development and operation of a 300,000 mt/y technical ammonium nitrate (TAN) plant in Ras Al Khair on Saudi Arabia’s East Coast.

Under the MOU, which was signed last month, IPL said Dyno Nobel will support the Front-End Engineering Design (FEED) and project services for the TAN production facility, which if built will be Saudi Arabia’s first such plant. The potential project includes a 440,000 mt/y nitric acid unit.

The potential partnership would supply TAN and nitric acid to Saudi regional mining and industrial users and enable Dyno Nobel to supply TAN to its international mining customer bases, IPL said in a Jan. 15 media statement. IPL did not disclose the identity of the Saudi investment company.

DNAP President Greg Hayne said the project provides significant potential for the development of the Middle East’s mining industry and also aligns with DNAP’s long-term strategy to grow its global footprint and further expand its manufacturing operations and sales in the broader Europe, Middle East, and Africa (EMEA) region.

SCCL’s parent, Saudi Chemical Company Holding, said in a statement that the MOU has a duration of six months, during which preliminary studies and the financial model of the project will be reverified. It added that the preliminary designs will be made by a specialized engineering company to make a final assessment of the feasibility of the project.

In February 2023, SCCL, in partnership with an unnamed local company, secured a gas allocation letter from Saudi’s Ministry of Energy to establish a facility for the production of nitric acid and TAN (GM March 3, 2023). SCCL is a leading manufacturer of civil and military explosives in Saudi Arabia and is one of five companies owned by Saudi Chemical Company Holding.

It is unclear if DNAP’s agreement with SCCL is running in parallel with a joint-venture deal IPL announced in November 2022 with Saudi’s Modern Chemicals Co. (MCC) to develop a TAN production facility at Ras Al Khair, or if that partnership has been abandoned (GM Nov. 4, 2022). MCC is reportedly developing a 350,000 mt/y Low Density Ammonium Nitrate (LDAN) project in Ras Al Khair Industrial City.

IPL’s then Managing Director and CEO Jeanne Johns had told investors and analysts at a company earnings call on Nov. 15, 2022, that the negotiation process for the jv was still underway (GM Nov. 18, 2022). IPL this week did not respond to a request for more information.

Orica Mining Services Portugal, a subsidiary of rival Australian explosives manufacturing group Orica Ltd., in January 2023 inked a nonbinding MOU with Saudi Chemical Company Holding for technical cooperation to localize the production of AN and nitric acid (GM Jan. 20, 2023). Under that MOU, which had a six-month term, a project to localize the AN and nitric acid industry was proposed.

2023 Fert Exports Via Russian Railways Up 10%

News Briefs, Nitrogen, Phosphate, Russia

The volume of fertilizers transported by Russian Railways for export increased by 10% in 2023, to 34 million mt, Interfax reported this week, citing the state-owned Russian Railways company.

Exports railed to and exported via the country’s seaports increased by 18% year-over-year, to almost 28 million mt, while exports by rail through land border crossings fell by 17%, to 6.1 million mt. Domestic transport of fertilizers by rail increased 7% in 2023, to 33.6 million mt, according to the report.

In the month of December, a total of 3.13 million mt of fertilizers were transported by Russian Railways for export, a 0.73% drop from November’s total of 3.153 million mt.

Fertilizers Transported by Rail for Export (‘000 mt)

Product December 2023 November 2023 % change
Total 3,130 3,153 (0.73)
       
Potassium Chloride 1,080 1,065 1
Nitrogen Fertilizers 1,095 1,130 (3)
Phosphate and Complex Fertilizers 847 871 (3)



Centrex Increases Phosphate Shipments, Run-Rate

Australia, News Briefs, Phosphate, Phosphate Rock

Adelaide-based Centrex Ltd. sold 37,857 mt of beneficiated phosphate concentrate from its Ardmore phosphate rock mine in Queensland in the fourth quarter of 2023, up from 17,263 mt in the third quarter.

Centrex also made its single largest shipment of 20,510 mt in the fourth quarter, the company reported in its fourth-quarter 2023 activities report released on Jan. 15. It did not disclose the destination of the shipment, but said it expects to achieve shipment sizes of 30,000 mt by mid-2024.

Centrex said it expects to achieve a run-rate at the Ardmore phosphate rock mine, located in northwest Queensland, of 240,000 mt/y this month, and remains on track to produce a total of 440,000 mt of beneficiated product in calendar year 2024. Centrex said it is working to achieve a production run-rate of 625,000 mt/y by December 2024.

Of the 440,000 mt production target for 2024, the company said around 290,000 mt is already under offtake allocation, including 15,000 mt in the first year with New Zealand-based fertilizer cooperative Ravensdown Ltd. (GM July 7, 2023), “with strong visibility on additional sales opportunities for the remaining balance.”

Mining started at Ardmore in August 2021. The mine is 100% owned by Centrex’s wholly owned subsidiary, Agriflex Pty Ltd. Phosphate reserves at Ardmore provide a 10-year mining life. Centrex’s other projects include the Oxley Potash Project, located in Western Australia around 125 kilometers southeast of the port of Geraldton.

Ma’aden Touts Ultra-Low Carbon Ammonia Milestone

Ammonia, Blue Ammonia, Carbon, Europe, News Briefs, Norway, Saudi Arabia

Riyadh-based Saudi Arabian Mining Company (Ma’aden) reported that it has been certified by the international assessor, Norway’s DNV, as having produced 614,000 mt of ultra-low carbon ammonia, representing the largest quantity accredited in the world to date.

In a media statement, Ma’aden said the accreditation is a significant step in its plans to grow and transform its business to become an ESG role model in the Kingdom. This follows Ma’aden’s ambitious program to ship over 138,000 mt of blue ammonia to major global markets, including the European Union and China (GM Oct. 28, 2022).

“With a world leading fertilizer business which is now the second largest exporter of phosphate fertilizers, there is significant potential for Ma’aden to consolidate its presence as a leading producer of ultra-low carbon ammonia,” the Saudi company said.

APC Launches Strategy, Moves Headquarters

Jordan, News Briefs, Phosphate, Potash

Arab Potash Company (APC) on Jan. 11 launched its 2024-2028 strategy and unveiled its new headquarters in Ghor Al Safi, some 133 kilometers south of the Jordan capital of Amman. APC’s previous headquarters was in Amman, while Ghor Al Safi was the location of its main potash operations.

As part of its 2024-2028 strategy, APC expects to spend more than JD1.2 billion (approximately $2.96 billion) over the next five years on expansion projects aimed at increasing production volumes and enhancing the company’s global competitiveness, according to Middle Eastern business and finance news portal Zawya. The report, however, provided few details of the planned and mooted projects.

APC produced a record 2.684 million mt of potash in 2022, according to its website. Of this total, some 295,000 mt comprised red granular potash, a recent addition to APC’s portfolio.

According to the report, Jordan’s Prime Minister Bisher Al Khasawawneh, who attended the strategy launch, stressed the need to develop new products from potash and phosphate to benefit from higher value products, as per Jordan’s new Royal directive issued in February 2023.

Jordan’s government has asked APC and Jordan Phosphate Mines Co. (JPMC) to proceed “immediately” to finalize discussions and make the necessary arrangements to establish a joint-venture phosphoric acid plant, according to the report. In February last year, the two companies inked three Memoranda of Understanding (MOU) related to the ammonia and specialized fertilizer sectors, and for conducting joint studies (GM Feb. 17, 2023).