Junior miner Sage Potash, Vancouver, B.C., recently announced a collaboration with ACP Capital Markets, a Connecticut-based investment bank.
ACP will serve as Sage’s exclusive financial advisor and bolster the company’s near-term financing goals as it advances plans for a 20,000-50,000 st/y demonstration plant at its Sage Plains Potash Project in Utah’s Paradox Basin (GM March 17, p. 27; April 14, p. 26).
Calgary-based Sulvaris Inc. and Machinefabriek Kreber B.V., a Netherlands-based producer of prilling technology and equipment, announced that they have signed a Memorandum of Understanding (MOU) to pursue the joint commercialization of a prilled urea plus micronized sulfur product.
Sulvaris’ Micronized Sulfur Technology (MST®) can be implemented into multiple granular, prilled, and liquid fertilizer production systems. The company’s Urea+MST® provides both nitrogen and slow-release sulfur in a single uniform granule/prill to ensure a balanced application for enhanced crop performance.
“The combination of Sulvaris’ technology and Krebers’ vast experience in prilling process equipment is a big step for further growth and commercialization of our Urea+MST® product,” said Jake Underwood, CEO of Sulvaris. “By working with Kreber, we can accelerate adoption of our technology on a global scale by utilizing the expertise of both companies’ people and technologies.”
Sulvaris develops proprietary technologies to transform industrial byproducts into agronomically and environmentally beneficial fertilizer products. The company’s product portfolio includes MST and Carbon Control Technology (CCT®). Sulvaris has licensed MST to Nutrien Inc. and it is currently being marketed as Smart NutritionTM MAP+MST(GM June 18, 2021).
Kreber has more than 60 years of experience in urea prilling processes and the design and construction of prilling equipment.
GROWMARK Inc. has partnered with InnerPlant, Davis, Calif., on a commercial pilot of InnerSoy, the world’s first soybean fungal sensor. InnerPlant genetically engineers plants to emit optical signals when the plants are stressed from a lack of water or nutrients, or under attack from pathogens, like fungi.
Using specialized equipment such as drones or satellites to detect the plant’s signals, farmers get the earliest possible warning to take action to protect their crops.
GROWMARK will establish small plots of InnerSoy throughout the Midwest in 2024 with plans to expand the number of plots over the next three years. Located near existing soybean farms, the plots will be used to detect early signs of fungal infestation in the plants. The data generated from the pilot plots will be used in InnerPlant’s machine-learning tools to improve agronomic intelligence to help protect and improve crop performance.
“Farmers face a tremendous amount of risk every year,” said GROWMARK Chief Operating Officer Wade Mittelstadt. “This pilot gives GROWMARK and our FS cooperatives the first ag retail access to InnerPlant’s cutting-edge technology developed to help farmers manage crop health risk.”
Unigel Participacoes, the troubled Brazilian chemical and fertilizer maker, has signed an agreement to sell 100% of Plastiglas, its Mexico-based acrylic sheet manufacturer, to the Verzatec Group, according to Bloomberg, citing a Unigel statement. Verzatec, also Mexico-based, produces fiberglass reinforced plastic laminates and related products.
The sale is in line with Unigel’s plan to readjust its capital structure. Sale proceeds are to be used to strengthen the company’s cash position. Unigel did not specify the economics of the transaction, citing confidentiality clauses. The closing of the transaction depends on regulatory approvals.
Unigel has hired an additional legal adviser as it continues to negotiate with creditors, according to people familiar with the matter. It has engaged Brazilian law firm Padis Mattar Advogados to help in debt restructuring talks, said contacts who asked not to be identified because the discussions are private. Unigel had already been working with Felsberg Advogados on the talks.
Unigel declined to comment, while Padis Mattar didn’t immediately reply to an emailed request seeking comment.
Unigel, which has struggled amid high interest rates and falling prices for its products, was cut to default by ratings firms in early November after failing to pay a coupon on its dollar bonds (GM Nov. 10, p. 30). The firm also negotiated a standstill with holders of its local notes.
PhosAgro PJSC plans to boost production by 1.4 million mt/y in 2026 from the current level, the Russian fertilizer company said in a Dec. 4 statement. The production plan for 2023 is 11.3 million mt, which, if achieved, will be a 1.8% increase on 2022’s output of 11.1 million mt (GM March 10, p. 26).
PhosAgro produced 8.5 million mt of fertilizers and other chemicals in the first nine months of 2023, a 3.7% year-over-year increase. Much of this growth was driven by increased MAP production, which was up 19.4% year-over-year, reflecting the ramp-up to design capacity at the company’s Volkhov production complex in southern Russia.
The company said in September that the Volkhov complex, where the first phase of production began in March 2021 (GM March 12, 2021), would reach its design capacity of 1 million mt of MAP this year (GM Sept. 1, p. 24).
PhosAgro CEO Mikhail Rybnikov said the incremental growth will be supported by developing the company’s phosphoric acid and sulfuric acid production facilities, with output growth targeted at 7% by 2026 versus the 2023 level.
PhosAgro has been carrying out large-scale repairs at the company’s phosphoric acid and sulfuric acid plants in the fourth quarter, while also increasing production of raw materials and fertilizers, Rybnikov said.
PhosAgro’s production of phos acid increased 5.3% in the first 11 months of 2023, to 3.063 million mt, which the company said was the “first time in its history” that phos acid production surpassed the 3 million mt level. Production of sulfuric acid increased 3% year-over-year for the period, while fertilizer and feed and technical-grade phosphates production increased 2.2%.
Acron Group expects to complete the modernization project of the Urea 1-4 units at its Veliky Novgorod production site in northwest Russia by 2025, and is considering adding a third urea granulation unit at the site as well as expanding the existing prilling tower, the company said in a Dec. 4 statement.
On completion, the daily aggregate production capacity of the N1-4 urea units will increase from 2,050 mt to 3,100 mt, adding an additional 400,000 mt/y to the site’s capacity. Acron Veliky Novgorod is already the largest urea production site in Europe, with a current total capacity of 2.1 million mt/y from six urea units.
Completion of the $80 million N1-4’urea project was originally planned for 2023 after being launched in 2021 (GM Dec. 3, 2021). Stamicarbon is acting as licensor for the basic design and technology. Acron made no comment on the delayed completion, though Western sanctions on Russia are likely to have contributed.
“As the output of liquid urea increases, the company will give the go-ahead for the design of a new urea granulation unit,” said Acron Chairman Alexander Popov. “At the same time, we are exploring options to increase the capacity of the existing prilling tower.”
Acron commissioned its second urea granulation unit at Veliky Novgorod this past August, with capacity of 700,000 mt/y (GM Aug. 18, p. 28). The group started up its first urea granulation unit, also with 700,000 mt/y capacity, in May 2020 (GM May 22, 2020). Before that, Acron had only produced urea that was prilled or rotoform.
Earlier this year, Acron completed a major overhaul of the Urea-6 unit at Veliky Novgorod, increasing its capacity to 2,650 mt/d. The company now has a total production capacity of 1.4 million mt/y for granular urea and 700,000 mt/y for prilled urea.
Acron also is upgrading the Ammonia-2 and Ammonia-3 units at Veliky Novgorod, which will add an additional 375,000 mt/y of ammonia production capacity at the site.
Russia and Saudi Arabia may establish a joint venture in the sphere of mineral fertilizers, according to Russian President Vladimir Putin during a visit to Riyadh, Interfax reported.
“There is a chance to establish a large joint company,” Putin said. Uralchem Group Founder Dmitry Mazepin was part of the Russian delegation.
Thailand has ordered the long-awaited Asia Pacific Potash Corp. to accelerate its mine project in Udon Thani province, according to bne IntelliNews. The government has been working to overcome local and environmental concerns about the project, which is tentatively scheduled to begin production in three years.
The news comes only a few weeks after Thailand’s Prime Minister Srettha Thavisin asked three potash mining companies to accelerate project development or risk losing concessions (GM Nov. 10, p. 32). The concessionaires are Asia Pacific Potash Corp., ASEAN Potash Chaiyaphum Plc, and Thai Kali Co.
“Three concessionaires have already been picked, but they have yet to begin the mining and need to be rushed,” he was quoted as saying. “In case they cannot begin [anytime soon], a new selection of concessionaires will be conducted.”
Hungarian fertilizer maker Nitrogenmuvek Zrt’s Chief Strategy Officer Zoltan Bige, in a statement on the company’s website, expects strong fundamentals and improving demand to help boost its outlook after Fitch downgraded the company’s long-term issuer credit rating.
Bige, son of owner and Chairman Laszlo Bige, noted that refinancing preparations indicate a prudent financial approach (GM Dec. 1, p. 27). Bige said production can be restarted immediately once market conditions are met. “Our investors understand our situation and find our liquidity reassuring,” he told Bloomberg.
Fitch cut the company’s rating to CCC+ from B- and placed all ratings on Rating Watch Negative to reflect disruptions in operation and “material deterioration” in financial performance in 2023, leading to higher refinancing risk for outstanding bonds. Adverse effects have heightened refinancing risk of its €200m Eurobond maturing in May 2025.
Fitch said the company underperformed over the past 12 months versus expectations due to a fertilizer market downturn and as gas prices rose above long-term averages. On top of that, the government’s tax on CO2 emissions applied retroactively and has led to a production halt, which will “materially” affect profitability and competitiveness.
While Nitrogenmuvek is challenging the tax, Fitch expects the case is unlikely to be resolved before the bond’s maturity.
India’s Chemicals and Fertilisers Minister Mansukh Mandaviya, speaking before the Fertiliser Association of India (FAI) meeting on Dec. 6, warned global fertilizer suppliers against price cartelization, saying the recent steep rise in fertilizer prices is unacceptable, according to a Press Trust of India report.
Mandaviva said suppliers took advantage of the global crisis created by the Russia-Ukraine war. If not checked, he warned that India would have to look to alternatives, noting that it has already developed alternative Nano urea and DAP to become self-sufficient.
