All posts by mickeybarb@charter.net

Sollio, Pursell to Build CRF Plant

Canada, Featured, News, South Central, Specialty

Sollio Agriculture, Montreal, Que., the agribusiness division of Sollio Cooperative Group, along with partners from its retail networks, and Pursell Agri-Tech LLC, Sylacauga, Ala., announced on Aug. 31 they are forming a joint venture to build and operate a fertilizer coating plant in St. Thomas, Ont., dedicated to the production of advanced controlled-release fertilizers (CRF). The project represents an investment of over C$20 million. At full capacity, the plant is expected to produce up to 100,000 mt/y.

The jv will break ground in the fall of 2021, and the new plant is expected to be operational in August 2022. It will serve farmers in Eastern Canada and the Northeastern U.S. with CRF products that contain nitrogen, phosphate, and potash, as well as customized plant nutrition options. Pursell technology also enables the addition of micronutrients, biologicals, growth enhancers, and soil health promoters.

“This partnership was made possible by the participation of many member cooperatives and retail joint ventures from our distribution networks across Eastern Canada,” said Sollio Cooperative Group President Ghislain Gervais. “This collaborative effort with our retailers makes this innovative technology that has great potential for the farmers we serve widely available.”

“We are delighted to be joining forces with Pursell to make the numerous economic and environmental benefits of its CRF technology available to Canadian farmers,” said Sollio Agriculture CEO Casper Kaastra. “Local manufacturing reduces logistics expense to customers, provides ability to offer previously unavailable CRF products to this market, and supports nutrient stewardship initiatives associated with the use of fertilizer products.”

“We have tested CRFs at our crop production research farm over four years and found that a preplant application of urea coated with Pursell’s new technology significantly increased corn yield and profitability,” said Sollio Agriculture Crop Management Researcher Lucie Kablan, Ph.D., Agronomy. “We are also conducting promising trials on coated phosphorus and muriate of potash, and have partnered with McGill University to evaluate the environmental benefits of CRFs in terms of greenhouse gas emissions. This will provide useful data to make recommendations to Canadian farmers.”

“Partnering with members of Sollio Cooperative Group to build a plant in St. Thomas is ideal,” said Nick Adamchak, Pursell CEO. “It’s located in close proximity to substrate and material suppliers and creates opportunities for retailers in the region to address the diverse nutrition needs of their customers in a predictable, prescriptive and profitable way. This first license of the Pursell technology outside of the U.S. also enables us to move forward in further international licensing opportunities with our partners at Stamicarbon.”

“The establishment of our St. Thomas plant gives growers in eastern Canada and the northeastern U.S. access to controlled-release nitrogen, phosphate and potash fertilizers, as well as customized plant nutrition options,” added Adamchak. Pursell said its technology, coupled with local manufacturing of products, make widespread adoption of CRF into the commodity agriculture market economically and environmentally feasible. It said that historically, CRF products have been difficult to access for commodity agricultural crops such as corn, wheat, canola, or potatoes, and have been used primarily in turf and ornamental and specialty agriculture in the region.

Pursell, which opened its flagship fertilizer coating plant in Sylacauga in early 2018, has also initiated plans to open an additional plant in Savannah, Ga. (GM May 28, p. 1).

Citing the International Fertilizer Association (IFA), Pursell noted that the use of CRFs could reduce by 20-30 percent the recommended rate of a conventional fertilizer while achieving the same yield. In addition, it said CRFs provide a more predictable, precise release curve, so growers can time when plants receive nutrients and that growers can also enjoy cost savings from being able to reduce fertilizer applications.

Yara Buys Finnish Firm Ecolan to Expand Organic Fertilizer Business

Featured, News, Scandinavia, Specialty

Yara Suomi Oy announced on Sept. 1 the acquisition of Ecolan Oy, a Finnish producer of recycled fertilizers. This is Yara’s first acquisition in the organic fertilizer segment, and reflects its commitment to play a bigger role in organic farming and in contributing to the circular economy, said Yara International ASA, Oslo.

Ecolan utilizes industrial side streams to produce high-quality fertilizers for agriculture and forestry, and recovered materials for earthwork and binders. The company has two main production facilities in Finland and 21 employees. Korona Invest Palvelurahasti 1, a Finnish private equity firm managed by Helsinki-based Korona Invest Oy, has held a majority stake in Ecolan Oy since 2015.

Yara said it has had good cooperation with Ecolan during the past years, and in 2019 brought a new organic fertilizer line with a high nitrogen content, which was produced by the Finnish firm, to the Finnish market.

“With this acquisition, we will be able to offer organic fertilizers also to markets outside Finland,” said Timo Räsänen, Director for Specialty Products for the Nordic and Baltic countries at Yara.

“Starting with small-scale production, Ecolan has, with the support of Korona Invest, grown into one of Finland’s leading circular economy industrial companies. Through Yara’s ownership, Ecolan’s know-how can be utilized also internationally,” said Korona Invest Chairman Vesa Lehtomäki.

Yara did not disclose the price tag on the acquisition.

Uralkali – Management Brief

Management Briefs, Russia

PJSC Uralkali, Moscow, has appointed Natalie Soboleva as its new CFO, Interfax reported this week, citing the Russian potash company. Soboleva was Uralkali’s Interim CFO since July, after former CFO Anton Vishaneko decided to leave the company (GM July 23, p. 28).

Soboleva previously held management posts at Uralchem and Novorossiysk Commercial Sea Port (2008-2012), and from 2013-2014, she was head of the Audit Department at Deloitte & Touche CIS.

Uralkali additionally has created a Sustainable Development and Investors Relations Directorate, and has appointed the company’s Head of Investor Relations Angelina Verba as its manager, according to the Interfax report.

Arriane Phosphate – Management Brief

Canada, Management Briefs

Arriane Phosphate, Saguenay, Quebec, a development-stage phosphate mining company advancing the Lac à Paul project in Quebec’s Saguenay-Lac-Saint-Jean region, reported the appointment of Raphael Gaudreault, P. Eng., as its Chief Operating Officer (COO). He was previously with Iamgold Corp., Toronto, and will be joining Ariane in September, while current COO Jean-Sebastien David will remain in an advisory role with Arianne as the company moves its project towards development.

Gaudreault is a member of the Order of Quebec Engineers and comes to Arianne with extensive knowledge of the Lac à Paul project, having previously worked at Arianne as Mining Director. “Raphael is an experienced engineer with an intimate knowledge of the Lac à Paul project,” said Dominique Bouchard, Arianne Executive Chairman. “Raphael’s appointment is extremely well timed as the company moves from geologically-based work to matters involving the development phase of the project. As well, given Raphael’s past experience on the project will mean no transitional delays.”

“Jean-Sebastien’s work on Lac à Paul was instrumental in advancing our project to what it is today, a fully-permitted, best of breed project,” said Jeffrey Beck, Arianne CEO. “Further, Jean-Sebastien remaining in an advisory role will provide continuity, allowing Arianne direct access to his historic knowledge and network associated with the project as the company moves forward on its path to building the mine and unlocking substantial value for all our stakeholders.”

Itafos Inc. – Management Brief

Houston, TX, Management Briefs

Phosphate producer Itafos Inc., Houston, on Aug. 31 announced the appointment of Elena Viyella de Paliza to its Board of Directors.

She has over 30 years’ experience in the fertilizer, power, and chemical sectors. She is the President and Chair of the Boards of InterQuimica SA, Monte Rio Power Corp., and Jaraba Import SA. Earlier in her career, she held various positions of increasing responsibility at Fertilizantes Santo Domingo SA, InterQuimica SA, and Sacos Agroindustriales SA.

Ms. Viyella de Paliza is a member of the Group of Fifty and has served on numerous boards, including Potash Corp. of Saskatchewan Inc., the Inter-American Dialogue, the Dominican National Agribusiness Board, and several leading universities and non-profit organizations in the Dominican Republic. She is a Chartered Accountant and Chartered Professional Accountant and holds a B.S. in Accounting from Universidad APEC.

“Elena is an accomplished executive and director and we are thrilled to add an individual of her caliber and experience to our team,” said Anthony Cina, Itafos Chairman. “Elena will contribute valuable perspective as we work to build on our momentum and pursue growth opportunities and sustainability.”

Centrex Metals Ltd. – Management Brief

Australia, Management Briefs, Specialty

Centrex Metals Ltd., Adelaide, South Australia, recently announced that its Board of Directors has unanimously appointed Peter Hunt FCA as the company’s new independent Non-Executive Chairman. He was appointed as a Non-Executive Director of the company on Dec. 15, 2020. He was a former consultant to BDO Adelaide, which merged with PKF Adelaide, of which he was a senior partner.

Hunt is a member of the Institute of Chartered Accountants in Australia. He is an experienced company director and has been a director and chairman over several decades of a number of ASX-listed mineral exploration and technology oriented companies.

Hunt’s appointment has been fully endorsed by Graham Chrisp, who stepped down as Executive Chairman to focus on his other business interests but will remain on the Board as a Non-Executive Director. Chrisp will also support the existing management on technical matters where required.

Uralkali Swings to 1H Net Profit on Prices, Forex Boost

Earnings, News, Potash, Russia

PJSC Uralkali, Moscow, swung to a first-half IFRS net profit of $535 million compared to a year-ago net loss of $180 million. Revenue was up 10 percent, to $1.46 billion versus $1.32 billion the previous year. EBITDA came in 31 percent higher, at $748 million, up from $570 million, with an EBITDA margin of 65 percent versus 54 percent in the same prior-year period.

“Global potash market conditions in the first half of 2021 were favorable, which reflects the operating results of the company. During the reporting period, there was a steady upward trend in potash prices in key spot markets, with predominant growth in the second quarter of the year, as well as an increase in global potash deliveries amid record major crops price levels supported by strong global demand, and reducing potash inventories in key regions due to limited supply,” Uralkali said.

Uralkali said the significant improvement in net profit mainly related to a $130 million gain from foreign exchange differences and fair value revaluation of derivative financial instruments in the reporting period compared to a $499 million loss in first-half 2020, as well as the increase in operating profits.

The company increased its potash output 19 percent year-over-year in the first half of 2021 to 6.2 million mt, up from 5.2 million mt.

But potash sales were down 2 percent, to 6.0 million mt from the year-ago 6.1 million mt. Export sales fell 4 percent to 4.6 million mt, down from 4.8 million mt. But deliveries to the domestic market increased 8 percent, to 1.4 million mt from 1.3 million mt, which the group attributed mainly to increased sales for complex fertilizers production, as well as to agricultural producers.

Six-month revenue from potassium chloride sales amounted to $1.27 billion, an increase of 6 percent. Revenue from sales of granular grades of potash accounted for 38 percent of potassium chloride sales, up from 36 percent a year-ago.

Industry fundamentals remain strong, and the company expects market conditions will continue to improve in the second-half.

The company sees global potassium chloride deliveries reaching 70-71 million mt this year.

As of June 30, 2021, the group’s net debt stood at $4.488 billion (June 30, 2020: $4.634 billion), with the ratio of net debt/EBITDA for the last 12 months amounting to 3.21x. In June, Urakali secured a sustainability-linked syndicated loan agreement with 18 international banks and financial institutions for a total of $1.25 billion, and was the first Central and Eastern European fertilizer producer to sign such a loan deal (GM June 11, p. 32).

Uralkali since December 2020 has been majority-owned (81.47 percent holding) by Dmitry Mazepin via Uralchem. Mazepin is also the Russian potash company’s co-Deputy Chairman (GM Dec. 4, 2020).

Higher Prices Lift OCP’s 2Q/1H Revenues

Earnings, Morocco, News, Phosphate

OCP SA, Casablanca, reported a 20 percent increase in second-quarter revenues, to MAD18.19 billion (approximately $2.0 billion at current exchange rates), up from the year-ago MAD15.13 billion. The Moroccan phosphates group cited higher selling prices compared with a year ago as driving the growth.

Six-month revenues increased 19 percent on the year, reaching MAD32.48 billion versus MAD27.40 billion in first-half 2020.

OCP said its investment expenditure for industrial development totaled MAD2.55 billion in the second quarter, some 14 percent lower than in the second quarter of 2020. Six-month capex was also down on a year-ago, at MAD4.30 billion versus MAD5.09 billion.

The group will report its full second-quarter and first-half 2021 financial results during September.

Belaruskali Says Operating at Full Capacity; Reiterates 16 M Ton Target

Belarus, News, News Briefs, Potash

JSC Belaruskali has been operating at 100 percent of its production capacity, and since January of this year has ramped up output from 11.5 million mt to 13.15 million mt (annual equivalent), according to state-run news agency BelTA, citing the producer’s Director General Ivan Golovaty in a meeting with Belarus President Alexander Lukashenko on Aug. 27.

The company boosted potash output close to 17 percent year-over-year in the January through July 2021 period, to 7.546 million mt. Exports in the period increased 10 percent year-over-year to 6.98 million mt, while sales to the domestic market rose 66 percent year-over-year, to 625,000 mt, according to the report, citing Golovaty.

He reported Belaruskali plans to increase its potash production capacities to up to 16 million mt/y by 2030, with a ramp up of output to 15.1-15.5 million mt/y by 2025, to reach the 16 million mt output target by 2030. Over the past years since 2016, production has increased from 10 million mt to 12.8 million mt, according to the report.

The company on Aug. 27 held a commissioning ceremony for the Petrikov GOK mining and processing complex in Belarus’ Gomel region, attended by Lukashenko. The date marked the seventh anniversary of when the first stone was laid to commemorate the start of construction at the site.

The mine produced its first ore in January 2020 (GM Jan. 3, 2020), and the potash processing plant was commissioned in June 2020 (GM June 12, 2020).

According to this week’s report, as of Aug. 1, 2021, Petrikov had produced 1.4 million mt of ore since its launch, and the processing plant had produced almost 158,000 mt of potash.

Petrikov has an annual potash production capacity of 1.5 million mt/y, and according to Golovaty, will be able to produce 2 million mt/y.

Belaruskali earlier this year had said it planned to reach output capacity at Petrikov by early 2022 (GM April 30, p. 31).

According to the BelTA report, the Director General, reiterated the potential to increase production up to 3 million mt/y at Petrikov, given the reserves at the site. Belaruskali previously put the mine’s potassium reserves at some 2.2 billion mt. This expansion would involve the construction of an additional shaft, he said.

The producer in May 2019 began construction of a new potash mine, Darasinsky, located in the western area of the northern section of Belarus’ Starobinsky deposit (GM May 24, 2019). In April of this year, it reported that it had begun the main stage of the operation to sink the cage shaft at the Darasinsky mine (GM April 23, p. 33).

Belaruskali is targeting a nameplate capacity of some 8 million mt/y of potash ore at Darasinsky, and has previously indicated it plans a subsequent capacity increase to 9 million mt/y.

It is unclear, however, what financing arrangements Belaruskali has in place for the development of Darasinsky, and how this funding may be impacted by the E.U. and U.S. sanctions.

China Freezes Funding for Belarus’ Nezhinsky K Project, Says Report

Belarus, China, News, News Briefs, Potash

This week, China’s state-owned China Development Bank (CDB) was reported to have frozen loan funds to Slavkaliy Co., the Russian billionaire Mikhail Gutseriev-majority owned company developing the Nezhinsky potash mining and processing project in eastern Belarus, according to a report this week by Belarus pro-democracy and a pro-human rights news site, Charter 97, citing finanz.ru.

Gutseriev was included in both the E.U. and U.S. expanded sanctions imposed in June and August, respectively (GM Aug. 13, p. 1; June 25, p. 1). The situation is further complicated by Belarusbank, which acts as the credit operator through which the Chinese funds are transferred to Slavkaliy Co., also being under sanctions by the E.U.

CDB and Belarusbank agreed a $1.4 billion credit agreement with Slavkaliy Co. for the Nezhinsky project in 2016 for a 14-year period (GM June 24, 2016). According to the Charter 97 report, CDB has “frozen” $580 million of funding, including a $103 million tranche that had been due to be provided this summer.

According to the report, developers owed money are starting to leave the construction site, but this could not be verified by press time.

Some 2 million mt/y of potassium chloride capacity is planned at Nezhinsky, with plans for the production of both white and pink potash, as well as granular grades.

Nezhinsky was reported to have produced its first ton of rock salt in April 2020, and last summer, Slavkaliy Co. was said to be targeting the completion of construction and commissioning of the processing plant in fourth-quarter 2023 (GM July 2, 2020).