Indian fertilizer producer Mangalore Chemicals & Fertilizers announced that Vijayamahantesh Khannur, the company’s Secretary and Compliance Officer, has tendered his resignation, effective July 31, 2023. Khannur has been with Mangalore since 2015, previously serving as Secretary and Compliance Officer for India’s Zuari Agro Chemicals Ltd.
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Chemtrade Reports Fatality at Fort McMurray
Toronto-based Chemtrade Logistics Income Fund confirmed that a contractor was killed on June 8 while performing services on the roof of the company’s Fort McMurray, Alta., facility. The company said it was an isolated incident with no danger to the public, but the plant was shut down. According to its website, the Fort McMurray plant produces ammonium sulfate.
“We are working closely with the authorities to support all investigations into this incident,” Chemtrade said in a statement. “Our plant has been safely shut down and our immediate focus is supporting our on-site personnel and all those affected by this tragedy.” The company extended its “deepest sympathy” to the individual’s family, friends, and colleagues. The name of the individual was not released.
ARA Applauds Passage of Supply Chain Bills
The US House Committee on Transportation and Infrastructure voted on May 23 to pass numerous bills aimed at addressing ongoing supply chain challenges. The bills were supported by the Agricultural Retailers Association (ARA), which co-signed an Agricultural Transportation Working Group letter sent to the House Committee members on May 19.
“The bills passed through Committee will bring economic and environmental benefits to ag retailers who depend on rail, shipping, and truck transportation to continue operating in support of our nation’s farmers,” said ARA President and CEO Daren Coppock. “The success of the ag retail industry is dependent on a strong and efficient supply chain, which is why the issue of transportation and supply chain solutions has been a top priority for ARA.”
The slate of bills approved by the committee include H.R. 3399, the Soo Locks Security and Economic Reporting Act of 2023; H.R. 1836, the Ocean Shipping Reform Implementation Act of 2023; H.R. 2367, the Truck Parking Improvement Act; H.R. 3013, the Licensing Individual Commercial Exam-takers Now Safely and Efficiently (LICENSE) Act of 2023; and H.R. 3318, which establishes a 10% axle weight variance for dry bulk.
Also included among the bills are H.R. 3316, which streamlines the environmental review process for major projects; H.R. 3365, the Supply Chain Improvement Act; H.R. 1500, the Intelligent Transportation Integration Act; H.R. 915, the Motor Carrier Safety Selection Standard Act; H.R. 3317, the Rolling Stock Protection Act; H.R. 3372, establishing a safety data collection program for certain 6-axle vehicles; and H.R. 2948, the Carrying Automobiles Responsibly and Safely (CARS) Act.
Petrobras Negotiates Partnership with Unigel
Brazil’s Petróleo Brasileiro S.A. reported on June 6 that it has started talks with Unigel Participações S.A. (Unigel) to analyze joint projects in fertilizers, green hydrogen, and low carbon initiatives, according to a regulatory filing cited by Bloomberg.
The two companies have signed a Non-Disclosure Agreement effective for two years. Estimates of the cost and returns of the joint projects will be available only after the completion of a technical analysis by a multidisciplinary group.
Founded in 1966, Unigel is a leader in styrenics, acrylics, and nitrogen fertilizers, consolidating itself as one of the largest chemical companies in Latin America and the largest manufacturer of nitrogen fertilizers in Brazil. Recent news reports said the company is seeking a partner for its green hydrogen/ammonia project in Bahia (GM July 29, 2022).
EC to Review NH3/Urea Import Tariff Suspension
As anticipated, the European Commission is reviewing an EU Council decision last December to temporarily suspend an import duty tariff for imported ammonia and urea for six months, and may extend the suspension beyond June, according to a Bloomberg report on June 8, citing an EU spokesperson.
The EU on Dec. 16 last year adopted the Council Regulation to temporarily suspend import tariffs on ammonia and urea from all origins except Russia and Belarus until June 17, amid concerns about rising fertilizer costs and their effect on food prices (GM Dec. 23, 2022). The previously applicable duties were 5.5% for CN code 2814.10.00 and 6.5% for CN code 3102.10.00.
The Commission is now preparing a report assessing the impact of the tariff suspension and current market conditions in the EU and globally. The Commission may, if appropriate, submit a proposal to extend the suspension based on that report.
Group Seeks Investigation of NeuRizer Urea Project
South Australia’s peak environment body has asked the Australian Securities and Investments Commission (ASIC) to investigate whether Adelaide-based NeuRizer Ltd. has misled shareholders and consumers about the green credentials of the urea fertilizer project it is developing north of Adelaide, according to an Australian Associated Press report.
The NeuRizer Urea Project (NRUP) is planned to have an initial capacity of 1 million mt/y of urea, utilizing in-situ gasification (ISG) based on coal from the decommissioned Leigh Creek coal mine (GM Aug. 5, 2022). The project is located approximately 550 kilometers north of Adelaide.
The Conservation Council of South Australia disputes a series of claims made by NeuRizer, including that the company was a certified carbon-neutral organization and the project was “carbon neutral by design.”
The Council’s lawyers called the representations misleading, arguing that the production of “urea fertilizer at the NeuRizer site is not carbon neutral, as it is based on fossil fuel hydrogen production from gases related to brown coal reserves.”
In a report by South Australia’s InDaily newspaper, NeuRizer Executive Chairman Daniel Justyn Peters rejected the Conservation Council’s claims and welcomed an investigation, saying “the complaint was factually incorrect, misleading,” and was part of the council’s “ideological opposition to gas, coal, and a range of other endeavours.”
NeuRizer late last month reported that it had secured another A$1.5 million (approximately US$0.97 million at current exchange rates) in government funding and expects another research and development rebate for the fiscal year ending June 30, 2023, for certain activities under Stage 1 of its urea project (GM June 2, p. 29).
OCP Africa, Togo Ink MOUs for Local Production
OCP Africa SA, a wholly owned subsidiary of OCP Group SA, and Togo’s agriculture ministry have signed a Memorandum of Understanding (MOU) under which the Moroccan company will launch a feasibility study for the construction of a phosphate-based fertilizer plant in Togo, according to Moroccan and Togo media reports.
The agreement is aimed at improving fertilizer supply in the Sub-Saharan country. No further details of the proposed facility were immediately available.
Under a second MOU, OCP Africa and the agriculture ministry have agreed to set up an agricultural service center offering mechanization services, irrigation, maintenance, agricultural inputs, and training and technical support to Togo’s farmers to increase the competitiveness of the country’s agricultural value chain.
SABIC Ships Low-Carbon Ammonia to Taiwan
Riyadh-based SABIC Agri-Nutrients Co. Ltd. confirmed that it has sent 5,000 mt of the first commercial shipment of low-carbon ammonia to Taiwan Fertilizer Co. (TFC). The shipment to TFC follows news in December that SABIC had shipped 25,000 mt of independently certified low-carbon “cradle-to-gate” blue ammonia to South Korea (GM Dec. 2, 2022).
“The shipment of low-carbon ammonia reflects our commitment to delivering low-carbon solutions to our customers and helping them achieve their net-zero targets in various areas such as clean energy transitions and low carbon chemicals/fertilizer solutions,” said Abdulrahman Shamsaddin, CEO of SABIC AN.
“We have already delivered such shipments to several markets such as Japan, South Korea, and India in line with our aspirations to become a leading player in the low-carbon ammonia market,” he added. “We are looking to transform our business to help address urgent global challenges through efficient carbon management, and our growth strategy supports a circular carbon economy vision where all value chains of carbon-containing products loop back.”
SABIC and Aramco in 2022 obtained the world’s first independent certification of low-carbon ammonia and clean hydrogen production from TÜV Rheinland, a leading independent testing, inspection, and certification agency based in Germany.
“TFC has been devoting itself to all possible solutions to achieve the ultimate goal of net zero for years, and the arrival of this low-carbon ammonia shipment is a significant milestone to be recorded,” said Dr. Huang Yao Hsing, CEO of TFC. “By supplying it to the downstream industries, including fertilizers and chemicals, low-carbon ammonia presents one of the best solutions to pursue carbon neutrality and as the leading supplier of ammonia in Taiwan, we have the responsibility to introduce it to the market.”
Kenya’s KEL Chemicals Acquired by Investors
The Competition Authority of Kenya (CAK) has okayed the full acquisition of KEL Chemicals Ltd., a phosphate and sulfuric acid producer based in Thika, Kiambu, by five investors, according to a June 5 report from Capital Business.
The investors are Jeetendra Kumar Somchand, Mahendra Kumar Somchand Haria, Pankaj Somchand Haria, Pradip Somchand Haria, and Deveshkumar Bhupendrabhai Patel. The approval followed a determination that the takeover will have no negative impact on competition or attract negative public interest.
CAK said in a statement that the transaction, which involves the acquisition of all shares in KEL Chemicals, qualifies as a merger or takeover. “Post-merger, there will be no change in the various market structures and concentrations in sectors since the parties’ commercial activities do not overlap,” CAK said.
“Therefore, the proposed transaction is unlikely to lead to a substantial lessening of competition in the relevant market or raise any competition concerns,” CAK said. “Additionally, the merged entity will continue to face competition from the other players in the markets.”
K+S Secures New €400 Credit Facility
K+S Group reported that it has secured a new revolving credit facility for a total of €400 million (approximately $427.9 million at current exchange rates). The group highlighted that for the first time, the credit facility also contained a component linked to the development of sustainability KPIs.
In a June 6 statement announcing the new credit line, which has a term of up to seven years, K+S Chief Financial Officer Christian H. Meyer said that when K+S introduced its new corporate strategy approximately two years ago, the group emphasized that business decisions must be consistent with the company’s climate strategy.