All posts by jlarareo@bloomberg.net

Affinity Capital Tapped for Australia’s AGA Project

Australia, Low-Carbon, News Briefs

Affinity Capital Group, Perth, Australia, has been appointed strategic advisor and lead manager for raising capital for the Allied Green Ammonia (AGA) project at Nhulunbuy on the Gove Peninsula in Australia’s Northern Territory.

According to AGA Founder and Managing Director Alfred Benedict, Affinity has already secured commitments for financing the first stage of the project. The planned facility is expected to produce 950,000 mt/y of green ammonia and is in a strategic location due to its proximity to Asia. AGA previously put the investment requirement at an estimated $8.5 billion (GM Sept. 29, 2023).  

AGA in May signed a Memorandum of Understanding (MoU) with Plug Power for the supply of up to 3 GW electrolyzer capacity (GM May 10, p. 27). Independent ammonia trader Trammo has since signed an MoU to purchase up to 100% of the renewable ammonia generated by the facility (GM Aug. 9, p. 24). First sales are expected in late 2028.

Lhyfe, OX2, Velarion Partner on Green Hydrogen

France, Green Hydrogen, Low-Carbon, News Briefs

Green hydrogen producer Lhyfe, based in France, has joined with onshore wind developer OX2 and Swedish green fertilizer company Velarion Group to develop a green hydrogen project in Grönsta, Sweden.

The project will use wind energy from the OX2 wind farm to power hydrogen production to produce green ammonia. The project is in the conceptual phase and is expected to have a capacity of up to 100 mt/d of green hydrogen generated by electrolysis.

Lhyfe recently was awarded funds for a clean hydrogen plant being developed in Le Havre, France, that will be used by Yara International ASA for fertilizer production (GM March 22, p. 27).

American Plant Food Corp. – Management Brief

Management Briefs, Texas

American Plant Food Corp. (APF), Galena Park, Texas, announced two leadership changes in its Sales and Operations departments, effective immediately. Howard West will step into the role of Logistics and Operations Strategist, focusing on inventory and operational efficiencies. Additionally, Nathan Hlavinka has been promoted to the position of Texas Sales Manager. 

“Howard has over 40 years of invaluable experience in this industry. We are confident that his leadership and background will drive significant improvements within our organization,” said Jesse Stephenson, Vice President, Operations.

“Nathan has consistently demonstrated outstanding skills, leadership qualities and a commitment to APF core principles,” said Jeff Greseth, Senior Vice President, Procurement & Sales. “He has played a key role in developing multiple geographic areas for APF and helped the company maintain its dominant market share in Texas.”

USDA Raises Corn Forecast, Lowers Soybeans

News Briefs

USDA’s latest Crop Production report, released on Sept. 12, estimates corn production for grain at 15.2 billion bushels this year, up less than 1% from the previous forecast but down 1% from 2023.

Based on conditions as of Sept.1, corn yields are expected to average 183.6 bu/acre, up 0.5 bushel from the previous forecast and up 6.3 bushels from last year. Area harvested for grain is estimated at 82.7 million acres, unchanged from the previous forecast but down 4% from 2023.

Soybean production is projected at a record high 4.59 billion bushels, down slightly from the previous forecast but up 10% from 2023. Average yields are pegged at a record high 53.2 bu/acre, unchanged from the previous forecast but up 2.6 bushels from 2023, while total area harvested for beans in the US is forecast at 86.3 million acres, unchanged from the previous forecast but up 5% from 2023.

All cotton production is projected at 14.5 million 480-pound bales, down 4% from the previous forecast but up 20% from 2023. Cotton yields are expected to average 807 pounds/acre, down 33 pounds from the previous forecast and down 92 pounds from 2023. All cotton area harvested is estimated at 8.63 million acres, up slightly from the previous forecast and up 34% from 2023. 

LSB Pays Penalty to Settle Whistleblowing Charges

News Briefs

The Securities and Exchange Commission (SEC) on Sept. 9 announced settled charges against seven public companies, including Oklahoma-based LSB Industries, for using employment, separation, and other agreements that violated rules prohibiting actions to impede whistleblowers from reporting potential misconduct to the SEC.

The companies agreed to pay more than $3 million combined in civil penalties to settle the SEC’s charges, with LSB agreeing to pay $156,000 related to 16 agreements between December 2019 and November 2023 that required employees to waive their right to recover a monetary award for participating in an investigation by a government agency.

Although these agreements expressly permitted participation in government whistleblower programs, the SEC said they also required employees to waive their right to a potential award. The SEC noted, however, that it is unaware of any instances in which LSB took action to enforce the award-waiver provisions.

“The SEC’s whistleblower program strengthens market integrity by providing protection and incentives for those who come forward and report potential violations of the securities laws,” said Jason J. Burt, Director of the SEC’s Denver Regional Office. “According to the SEC’s orders, among other things, these companies required employees to waive their right to possible whistleblower monetary awards. This severely impedes would-be whistleblowers from reporting potential securities law violations to the SEC.”

Other companies that agreed to pay penalties include Acadia Healthcare Company Inc., Brands Holding Corp., AppFolio Inc., IDEX Corp., Smart for Life Inc., and TransUnion. The SEC said each of the firms has agreed not to violate this rule in the future and has taken steps to remediate the violations, including making changes to the relevant agreements.

Sage Potash Trading Halted After Transaction

News Briefs, Potash, Vancouver

Junior miner Sage Potash, Vancouver, B.C., reported that its common shares would resume trading on the TSX Venture Exchange on Sept. 11 after being halted from trading on Sept. 9 following TSXV’s request to review a transaction between Sage and a subsidiary of International Process Plants (IPP).

Sage, which is developing two Class V exploration wells at its Sage Plain Potash Project in Utah’s Paradox Basin (GM Jan. 12, p. 27), announced on Sept. 9 that it had purchased equipment from IPP for $12.6 million that would be used to process up to 300,000 mt/y year of potash.

Sage said it would satisfy the purchase price by paying $6.3 million in cash, issuing 12.6 million common shares to IPP at a deemed price of $0.20 per share, and issuing IPP a secured convertible debenture with a principal amount of $3.78 million.

Sage said the gross proceeds of the private placement of $11.3 million will be used to satisfy the obligations under the purchase agreement with IPP and for equipment-related purposes such as packing, logistics, modifications, interest, and general working capital.

Sage noted that the private placement and transactions contemplated under the purchase agreement are subject to acceptance by the TSXV, and all securities issued under the private placement and purchase agreement will be subject to a hold period of four months.

“By buying this existing equipment now, Sage is mitigating project risk and cost, as well as providing added clarity to the project’s timeline, which is what project funders require,” said Sage CEO Peter Hogendoorn. “We believe this ultimately enhances shareholder value as we seek to reduce the United States’ nearly 100% reliance on imports for potash supply.”

Russia May Extend Export Quotas

News Briefs, Russia

Russia’s Industry and Trade Ministry has proposed extending export quotas for mineral fertilizers until May 31, 2025, Interfax reported, citing the government’s draft order. The draft sets the export quotas between Dec. 1 and May 31, 2025, at 19.2 million mt, including 11.2 million mt tons of nitrogen fertilizers. The current export quotas are set through Nov. 30.

Arab Potash Completes Largest Export to Europe

Europe, News Briefs, Potash, The Netherlands

Amman-based Arab Potash Co. (APC) reported that it has exported its largest-ever shipment of potash to Europe, sending 54,800 mt aboard the MV Draftvader in early September to Belgium and the Netherlands.

APC Chairman Shihadeh Abu Hdaib said APC is steadily growing its global footprint and has implemented numerous capital projects over the last five years to expand into new markets. He said the company’s traditional markets are currently facing intense price competition due to shifts in global potash trade routes.

In an effort to establish a strong presence in the European market, APC has rented storage facilities at major ports in Belgium and the Netherlands. APC President and CEO Dr. Maen Nsour said this has allowed the company to ship large quantities of potash at lower freight costs, and to reach customers in France, Spain, the UK, Ireland, Benelux, and Eastern Europe using small vessels, river barges, and trucks.

Hdaib noted as well that the increase in APC’s exports to Europe has also had a positive impact on Jordan’s national trade balance, given that APC is one of Jordan’s largest contributors to foreign currency reserves and state revenue.

Fauji Fertilizer Moves to Acquire Agritech

News Briefs, Pakistan, SSP, Urea

Pakistan’s Fauji Fertilizer Company Ltd. (FFCL) has expressed its intention to acquire shares and control of Agritech Ltd. (AGL), a producer of urea and granulated single super phosphate (SSP) fertilizers in the country, Pakistan Today reported on Sept. 11, citing a notice filed by AGL to the Pakistan Stock Exchange (PSX).

FFCL, which is also listed on the PSX, has appointed Integrated Equities Ltd. (IEL) to manage the offer. FFCL is reportedly engaged in due diligence and negotiating acquisition terms after the offer was approved by the FFCL Board of Directors.

AGL has urea production capacity of 433,000 mt/y and SSP capacity of 81,000 mt/y, JS Global Securities reported in a note. “The potential acquisition is expected to result in synergies which are likely to add value to the combined enterprise,” it added.

Restructure Boosts China’s Lithium Industry

China, Lithium, News Briefs

China Minmetals Corp. will take control of a province-backed lithium company in a bid to speed development of a “world-class” industry extracting the battery material from salt lakes in the far west of the country.

The sprawling mining-to-trading group backed by China’s central government will hold 53% of a new joint venture, China Salt Lake Group, which will in turn take over Qinghai Salt Lake Industry Co., the latter firm said in an exchange statement. The new company’s registered capital will be 10 billion yuan ($1.4 billion).

The restructuring has been under discussion since at least April and suggests a move by the central government to push for a bigger role in building out a key part of the domestic lithium sector. Qinghai province, covering a vast sweep of northwestern China, hosts many of the country’s lithium-bearing salt lakes.

The Minmetals takeover will “accelerate construction of a world-class salt lake industry base,” said Qinghai Salt Lake, which is currently controlled by provincial authorities. Its shares rose more than 8% after the announcement.

The global lithium industry is going through a turbulent phase with prices crashing amid a deepening supply glut. Still, much more production will be needed in coming decades to support demand from batteries for electric vehicles and energy storage.

The remainder of China Salt Lake Group, besides Minmetals’ controlling stake, will be held by two Qinghai government entities.