All posts by hlancey@bloomberg.net

Iowa Farmer Accused in Fertilizer Spill

Iowa Farmer Jeff Boyer, whose liquid ammonium phosphate fertilizer tank ruptured in Burlington, Iowa, on April 22, has been accused of not reporting a fertilizer spill, driving away from it, and initially refusing to help clean a creek it contaminated, according to the Iowa Capital Dispatch, citing the Iowa Department of Natural Resources (DNR).

DNR named Boyer in its initial press release that reported the spill (GM April 26, p. 29). The investigation revealed an unknown amount of the fertilizer spilled onto the street and continued into a nearby storm sewer that discharges into Hawkeye Creek.

DNR staff later observed fertilizer contamination at Hawkeye Creek, which flows through the City of Burlington to the Mississippi River. City officials worked to capture the creek flow and clean it through the Burlington Wastewater Treatment Plant.

While no dead fish were observed, the DNR told the Dispatch that the creek was discolored up to a mile away from the spill site. The city later opted to flush the creek with 200,000 gallons of water to dilute the contamination.

Landus Launches Tech Startup

Landus, Iowa’s biggest agricultural cooperative, is creating a new tech company to provide farmers with services such as bank loans and crop analysis, according to a Bloomberg report.

The new venture, Conduit, will offer 0% financing to qualified borrowers on all in-season purchases of farm inputs, according to Landus. It will also make financing available in some states for land, input, and equipment loans.

The launch of Conduit comes at a difficult time for some digital startups in the $1.5 trillion US agricultural industry. While just a few years earlier, some startups were attracting investors and being hailed as disruptors, more recently, fresh funding has been harder to come by.

Still, Landus has the backing of Amol Deshpande, the Co-Founder and former CEO of farm-tech startup Farmers Business Network (FBN) and a former partner at Kleiner Perkins who led the venture capital firm’s early investment in Beyond Meat Inc. He plans to invest an undisclosed amount in Conduit through his family office and serve as an adviser to the new company, Deshpande said in an interview.

“Some growers are extremely comfortable with technology innovation. Others cringe at the thought of something beyond a flip phone,” Landus CEO Matt Carstens said in an interview. from the cooperative’s headquarters in Des Moines. “Our job is to meet them where they are and help them along the journey.”

Landus, which has 5,500 farmer members across the US, will have a stake of 50% or more in Conduit. Selected farmer-owners of the co-op will have a chance to invest initially. There are also discussions with potential institutional investors, Carstens said.

Itafos Files Updated Technical Report on Conda

Phosphate maker Itafos Inc. on April 29 announce that it has filed an updated technical report for its Conda phosphate fertilizer project in Idaho. The Conda Technical Report demonstrates increased mineral reserves and the opportunity for continued operations at the Conda Project through 2037, the company said.

The report increases the mineral resource estimate for Husky1-South Maybe Canyon and North Dry Ridge from 38.1 million st at ~24.3-27.0% P2O5 to 40.5 million st at ~24.2-26.7% P2O5. The total estimated mineral reserves for Conda increased from 14.4 million st at ~26.6% P2O5 as of July 1, 2019, to 33.7 million st at ~25.0% P2O5 as of July 1, 2023.

Itafos said the Rasmussen Valley Mine block model did not change between the 2019 model estimates and the effective date of the Conda Technical Report. The estimated remaining mineral resource at the mine after the effective date of July 1, 2023, is 5.9 million st at ~25.9% P2O5, and the estimated remaining mineral reserve is 4.3 million st at ~26.0% P2O5.

“The updated Conda Technical Report validates and updates the proven and probable reserve estimates that support the H1/NDR project with proven mine life through 2037,” said Itafos CEO David Delaney. “Following the Notice to Proceed in May 2023, we have been working diligently on capital activities associated with the H1/NDR project with H1/NDR ore recovery expecting to start in late 2024. The Conda Technical Report and associated capital activities are the culmination of our strategic objective of extending Conda’s mine life.”

Brazil Potash Reports Milestones, New Licenses

Potássio do Brasil, a subsidiary of Brazil Potash, on May 1 said the first implementation activities are occurring at the Autazes Potash Project, with the first equipment arriving in the village of Urucurituba, in Autazes, in Amazonas state, and the first hires already taking place.

The company also reported that on April 26 it received three additional Installation Licenses. The first was received in April for the construction of the mine shafts and underground workings (GM April 12, p. 1) and the remainder, of a total of 11, are expected soon.

The three additional licenses from the Amazonas State Environmental Protection Agency (IPAAM) are for construction of a river port on the banks of the Madeira River, a stockpile at the port, and to drill two water collection wells for the Autazes Potash Project.

Potássio do Brasil’s port near the village of Urucurituba, in Autazes, is expected to supply 2.4 million mt/y of potash, all targeting domestic farmers in Brazil. The company said the new river barge port will have a higher capacity than the existing ports in the Northern Arc (Itacoatiara, Vila do Conde, and Santarém) combined, which are the main route of entry for imported fertilizers in the Amazon Basin at around 1.7 million mt.

“With Installation Licenses being granted for the mine, port, port stockpile, and two water collection wells, the company is ready to start construction activities in the field, with the mobilization of personnel and equipment within the areas foreseen and approved by the environmental agency,” said Potássio do Brasil President Adriano Espeschit.

The company said it is also preparing detailed engineering studies, an exhaustive review of the schedule of activities, and quotations for critical path services, including the drilling of a second geotechnical hole about 1,000 meters deep to obtain critical technical information for shaft sinking and construction.

Petrobras ANSA Operations Eyed for Mid-2025

Petrobras expects to make a final decision on its Araucária Nitrogenados (ANSA) fertilizer factory, in Paraná, in mid-2024, with plans to have the facility back in operation in mid-2025, according to Petrobras Director of Industrial Processes William Franca, as reported by Istoe Dinheira.

Speaking to journalists at a recent seminar, Franca said the project is advanced and should not face any difficulties. Petrobras’s Executive Board approved initial steps for the reactivation of the fully-owned ANSA in April (GM April 19, p.1). The company said last August that it was in the final stages of studies for the resumption of production at the plant (GM Aug. 18, 2023).

The plant has been dormant since 2020 (GM Jan. 17, 2020). At the time, Petrobras said it was mothballing the facility due to recurring losses and a failure to find a buyer. The plant has a production capacity of 720,000 mt/y of urea and 475,000 mt/y of ammonia, as well as 450,000 cubic meters per year of ARLA 32.

Petrobras also owns a partially completed nitrogen fertilizer complex, Unidade de Fertilizantes Nitrogenados III (UFN-III), in Três Lagoas, Mato Grosso do Sul state. It also owns plants at Bahia (Fafen-BA) and Sergipe (Fafen-SE) that it leased to Unigel (GM Aug. 14, 2020), which are currently not in operation due to market conditions.

Nutrien Welcomes Court Decision

Nutrien Ag Solutions on April 29 said it welcomed a decision by the Supreme Court of Western Australia restraining the Fremantle Port Authority (FPA) from terminating Nutrien’s tenancy at the Kwinana Bulk Jetty (GM April 26, p. 32), pending the outcome of a final decision of the matter.

Nutrien said it instituted the proceedings after it could not reach an agreement with the FPA on its ongoing use of the premises that were damaged by a fire on Feb. 9, 2024 (GM March 1, p. 31; Feb. 16, p. 33).

“We welcome the decision by the Supreme Court today and will continue to work on achieving a resolution to the tenancy dispute to minimize any impact on our customers and farmers across WA,” said Nutrien Managing Director Kelly Freeman. Nutrien said the final hearing is expected to be scheduled to commence in the next few months.

Russia Extends Fertilizer Export Quotas

The Russian Federation on April 28 extended its fertilizer export quotas for June 1 to Nov. 30, 2024. The announcement follows an initial proposal by the Ministry of Industry and Trade in March (GM March 29, p. 30).

The quota allows exports of 19.7 million mt of fertilizer, including 12.4 million mt of nitrogen and 7.3 million mt of phosphates. The nitrogen quota includes urea, UAN, and ammonium nitrate, the latter of which is further limited to a quota of 4.77 million mt.

Russia exported a total of 14.5 million mt of nitrogenous products in 2023, of which 3.15 million mt was ammonium nitrate. Ammonium nitrate is the more popular nitrogen fertilizer used domestically in Russia and it is seasonally subjected to export curbs meant to safeguard domestic supply and prices.

Russia first introduced the export quotas on fertilizers on Dec. 1, 2021 (GM Nov. 5, 2021) and has extended them several times. The export restrictions are aimed at keeping sufficient volumes of fertilizers available for supply to the domestic market.

Ukraine Plant Reportedly Returning to Production

Ukraine’s state-owned PJSC Sumykhimprom fertilizer and chemical producer is in the process of returning to production after a long pause, according to Interfax, citing the Ukraine media. Plans are to produce nitrogen-phosphorus and complex fertilizers. Ammonia and sulfur have already been purchased, with phosphates and potash currently being sourced, according to the report.

The facility shut down in emergency mode soon after Russia invaded Ukraine (GM March 25, 2022). An ammonia leak was also reported at the plant in the early days of the invasion though it was not clear if that was an accident or occurred from shelling. The facility, in the city of Sumy, is near the Ukraine/Russia border.

The plant also produces titanium dioxide, sulfuric acid, and other types of inorganic chemical products.

Coromandel Plans New Acid Plants

India’s Coromandel International Ltd. on April 29 announced plans for a Rs 1,000 crore ($133.5 million) phosphoric and sulfuric acid complex at Kakinada, Andhra Pradesh. thyssenkrupp UHDE will provide the detailed engineering for both plants. Commissioning is expected in two years.

Technology from Belgium’s Prayon has been procured for the proposed 650 mt/d phos acid facility. The acid is expected to provide a stable supply for the plant’s fertilizer manufacturing by replacing more than 50% of Kakinada plant’s imported phos acid requirement.

The sulfuric acid plant will produce 1,800 mt/d. US-based MEC will supply the sulfur processing technology. The company said the Kakinada plant, with a capacity of 2 million mt/y, is India’s second largest phosphate fertilizer facility and contributes close to 15% of the nation’s NPK fertilizer output.

Coromandel noted that it already has two fertilizer plants at Visakhapatnam and Ennore that are fully integrated with captive phos and sulfuric acid facilities.

Pro-Russian ‘Hacktivists’ Targeting Industry

Pro-Russian “hacktivists” are attempting to compromise computer networks for critical industrial sectors of the economy in North America and Europe, Bloomberg reported on May 1, citing cybersecurity agencies in the US, UK, and Canada.

Eric Goldstein, a senior official at the US Cybersecurity and Infrastructure Security Agency, said the hackers have targeted “small-scale” technology that controls industrial equipment and processes, including in the water and wastewater sectors, as well as dams, energy and food, and agriculture.

The hacking activity dates back to 2022 but was seen as recently as last month, targeting organizations that struggle to implement even basic cybersecurity measures. Such protocols include changing default factory settings, using weak passwords, or failing to add other protections such as multifactor authentication, he said.

Hacktivists break into computer networks for political or socially motivated purposes, though some hacktivist groups are believed to be tied to foreign intelligence operations.

In some cases, the intrusions caused water pumps and blower equipment to exceed normal operating parameters in a way that resulted in the operators reverting to manual operations, Goldstein said. Noting that many of the organizations lack significant resources, he appealed to technology vendors to install safe settings by default.

“There is no reason why any technology product should be coming off the shelf with a factory default password that is not immediately changed upon installation,” he said.

Goldstein’s comments follow a note sent out widely to industry players on April 30, obtained by Bloomberg News, which urged recipients to conduct “targeted outreach efforts” to relevant utilities and equipment manufacturers about the threat. CISA didn’t immediately comment on that note, and a representative for the Russian Embassy in Washington didn’t immediately respond to a request for comment.

In April, cybersecurity company Mandiant detailed claims from a pro-Russia hacktivist group named the Cyber Army of Russia Reborn (CARR) that it had hacked water facilities in the US, causing one water tank in Muleshoe, Texas, to overflow, and affecting other utilities.

John Hultquist, chief analyst at Mandiant Intelligence, said that group has considerable ties to Sandworm, a hacking group affiliated with Russian military intelligence that has carried off a series of high-impact and damaging hacks. Hultquist said it remained unclear if there was any link between Sandworm and CARR’s purported activities targeting US critical infrastructure.

“The impacts may be minimal, but the issue here is they’re crossing the physical barriers,” he said of the recent attacks from pro-Russia hacktivists targeting US water systems.

Asked about a Sandworm connection, Goldstein said, “At this point, the US government is not assessing a connection between Sandworm and the pro-Russia hacktivist activity described.” But he said officials are conducting ongoing analysis to ensure the US government understands the threat as it evolves.