All posts by mickeybarb@charter.net

Israel’s Energy Minister Postpones Decision on ICL’s Phosphate Mining Franchise

Israel, News, News Briefs, Phosphate

Israel’s Energy Minister Karine Elharrar has postponed the renewal of ICL Group Ltd.’s franchise to mine phosphates in the Negev Desert in southern Israel until the country’s Finance Ministry concludes an investigation into whether a subsidiary company, Rotem Amfert Negev Ltd., now called ICL Rotem, owes royalties to the state, according to a Times of Israel report.

A year ago, the Energy Ministry approved extending ICL’s franchise, which runs out at the end of 2021, for another three years, without a tender or conditions, according to the report. The approval came despite complaints by the country’s Environmental Protection Ministry about the pollution the phosphate mining allegedly causes.

A Finance Ministry spokesperson cited by the report said the probe into royalty payments relates to past payments made by Rotem Amfert to the state and will assess whether they were made in accordance with the company’s franchise agreement. The investigation is expected to be completed within the next two months, and depends on receipt of documents from the companies involved.

ICL declined to comment to TOI on the Energy Minister’s decision

Rotem Amfert was responsible for one of Israel’s worst environmental disasters in June 2017, when the wall of an evaporation pond collapsed, sending between 100,000 and 250,000 cubic meters of wastewater into the Ashalim stream (GM Dec. 8, 2017).

ICL was also involved in a long-running royalties dispute with the State of Israel regarding its Dead Sea Works (DSW) subsidiary, which begun in 2011 and was finally settled in April 2019 (GM May 3, 2019).

ICL Expands Product Offerings at YPH

Lithium, News, News Briefs, Phosphate

ICL Group Ltd., Tel Aviv, said it is expanding specialty MAP solutions product offerings at its YPH joint venture plant in China to include material for the production of lithium iron phosphate (LFP) batteries destined for electric cars and other energy storage.

The group said in an Aug. 30 statement it is now able to offer a complete range of MAP solutions at the YPH plant and is committed to creating additional capacity to meet rapidly increasing customer demand for specialty MAP products.

“Over the past several years, Chinese producers have been leading in the LFP battery space, which currently accounts for some 23 percent of the global Li-ion battery market and is expected to grow at 25 percent compound annual growth rate (CAGR) through 2030, according to Boulder, Colo.-based Cairn ERA,” said ICL.

Russia Mulls New Mineral Extraction Tax Based on Market Prices

News, News Briefs, Russia

Russia’s government is considering how to implement “a floating” mineral extraction tax (MET) rate for producers of fertilizers and metals linked to global prices, according to a Bloomberg report on Aug. 31, citing Russia’s Deputy Finance Minister Alexey Sazanov.

Sazanov told reporters the government may propose the new scheme by the start of October, conceding developing such a tax system is “a complicated issue.”

Russia already has in place a MET applicable to a number of fertilizer raw materials, including potassium salts, and apatite-nepheline, apatite, and phosphate ores, which is typically set annually (GM Oct. 2, 2020)

Russia’s gold and diamond miners already pay a MET based on the market prices of their commodities, but Sazanov said no changes are currently planned to the rate of MET they are paying.

Kima Inks MOU for Restructuring Loan for Kima-2

Egypt, News, News Briefs

Egyptian Chemical Industries S.A.E. (Kima), Cairo, has inked a Memorandum of Understanding (MOU) for restructuring the outstanding $292 million and EGP1.92 billion (approximately $122 million at current exchange rates) syndicated facility agreement.

Kima said in a statement the agreement was signed on Aug. 31 with a syndicate of Egyptian banks that included National Bank of Egypt, Banque Misr, and Arab African International Bank as Initial Mandated Lead Arrangers, Underwriters, and Bookrunners, joined by Banque Du Caire as Mandated Lead Arranger and Sub-Underwriter, and Blom Bank and Egyptian Arab Land Bank. The original syndicated facility agreement was signed in 2015.

The facility proceeds are being used to finance the Egyptian company’s Kima-2 ammonia and urea production complex in Aswan. The producer said the ammonia plant is currently operating at around 80 percent and the urea plant at 104 percent of installed capacity. Nameplate capacities are 1,200 mt/d of ammonia and 1,575 mt/d of urea.

NASS to Update Corn, Soybean Estimates in September

News, News Briefs, U.S.

The USDA’s National Agricultural Statistics Service (NASS) on Sept. 1 announced that it will review planted and harvested acreage figures for corn, soybeans, cotton, peanuts, rice, sorghum, and sugar beets in preparation for the next Crop Production report, which will be published on Sept. 10.

The move is unusual, with NASS noting that it normally updates acreage figures only for cotton, peanuts, and rice in September, with updates for corn, sorghum, soybeans, and sugar beets taking place in October. “However, the data are sufficiently complete this year to consider adjustment in September,” NASS said.

NASS said it will review “all available data” for the September report, “including survey data, satellite-based data, and the latest information from USDA’s Farm Service Agency (FSA) and Risk Management Agency.” If the data review justifies any changes, NASS said it will publish updated planted and harvested acreage estimates in the Sept. 10 report.

Several analysts said the change suggests a possible increase in the last corn acreage estimate published in June, based on FSA’s August data, with modest acreage reductions possible for cotton and soybeans. USDA’s June 30 Acreage report (GM July 2, p. 1) said U.S. corn growers planted 92.7 million acres of corn this year, up from the March 31 Prospective Plantings estimate of 91.1 million acres, and also up two percent from last year.

Planted soybean acreage was estimated at 87.6 million acres in the June report, unchanged from the March Prospective Plantings projection, but up five percent from last year.

NASS to Update Corn, Soybean Estimates in September

News, News Briefs, U.S.

The USDA’s National Agricultural Statistics Service (NASS) on Sept. 1 announced that it will review planted and harvested acreage figures for corn, soybeans, cotton, peanuts, rice, sorghum, and sugar beets in preparation for the next Crop Production report, which will be published on Sept. 10.

The move is unusual, with NASS noting that it normally updates acreage figures only for cotton, peanuts, and rice in September, with updates for corn, sorghum, soybeans, and sugar beets taking place in October. “However, the data are sufficiently complete this year to consider adjustment in September,” NASS said.

NASS said it will review “all available data” for the September report, “including survey data, satellite-based data, and the latest information from USDA’s Farm Service Agency (FSA) and Risk Management Agency.” If the data review justifies any changes, NASS said it will publish updated planted and harvested acreage estimates in the Sept. 10 report.

Several analysts said the change suggests a possible increase in the last corn acreage estimate published in June, based on FSA’s August data, with modest acreage reductions possible for cotton and soybeans. USDA’s June 30 Acreage report (GM July 2, p. 1) said U.S. corn growers planted 92.7 million acres of corn this year, up from the March 31 Prospective Plantings estimate of 91.1 million acres, but below analyst projections.r.

Planted soybean acreage was estimated at 87.6 million acres in the June report, unchanged from the March Prospective Plantings projection, but up five percent from last year.

Tessenderlo Eyes Organic Fertilizer, Ammonium Thiosulfate Expansion

Europe, News, News Briefs, Specialty

Tessenderlo Group, Brussels, told analysts on Aug. 26 that it is looking to establish a team to take Violleau, its organic fertilizer solutions business, to the next level. The unit, which formed during the first quarter within the company’s Bio-valorization segment, currently exists only in the French market.

The company announced that construction on its new ammonium thiosulfate (Thio-Sul®) plant in Geleen, The Netherlands, is expected to start in April 2022. As previously reported, completion of this plant is expected in second-quarter 2023 (GM July 2, p. 31; March 25, p. 33 ).

TKI opened its first European plant for the production of Thio-SulR in Rouen, France, in September 2017 (GM Sept. 17, 2017). Prior to the opening of its Rouen plant, for the previous few years, the company had been importing Thio-SulR from the U.S. to serve its European customers.

In addition, Tessenderlo said it continues to eye the potential to build an ammonium thiosulfate plant in Eastern Europe.

In other news, the company said that in first-half 2021 it participated in the Belgian Capacity Renumeration Mechanism (CRM) tender for the construction of a second gas-fired power station of 900 MW in Tessenderlo, Belgium. If successful in the auction, the new power plant (which involves the investment of E500 million) would be operational by Nov. 1, 2025.

In other news, the company said its Industrial Solutions business has reached an agreement to divest the MPR Services (solvent reclamation) and Environmentally Clean Systems LLC (ECS) (water reclamation and disposal) activities. However, it said their yearly contribution is not significant. The sale is expected to be completed in second-half 2021 and lead to an insignificant result within EBIT adjusting items. ECS production assets in the Bakken area of North Dakota were damaged by a fire in 2020, and thereafter the company said it would be assess the future of the asset.

Meanwhile, the company’s Mining and Industrial business unit, within the Industrial Solutions segment, has changed its name to Moleko.

iFresh Enters Exclusive Agreement to Sell Bit Silica Fertilizer

News, News Briefs, Specialty

iFresh Inc., Long Island City, N.Y., the Asian American grocery supermarket chain and online grocer, said on Aug. 30 it has entered into an exclusive agency agreement with Florida-based Bit Farm Inc., in which iFresh will be the exclusive distributor of Bit Silica + ® (Bit Silica Plus) fertilizer. iFresh is authorized to market and sell Bit Silica Plus in the United States for the next twelve months, with an option to extend.

Bit Farm focuses in the technology sector, with operations in agriculture (including cannabis) and digital currency mining. Bit Silica Plus is a plant supplement developed to accelerate plant growth and extend harvest time. The company said it corrects common plant deficiencies through its combination of silica, titanium, and calcium. It is produced through technologies, such as small molecule oscillation technology, positive and negative ion exchange technology, negative charge generation technology, and powerless photoelectric oxygen enrichment.

iFresh reports that Mr. Long Deng, iFresh Chairman, has personally invested in Bit Farm and acts as an external consultant.

“We are excited to use our extensive retail network to introduce Bit Silica Plus fertilizer to the market,” said Deng. “Our partnering farm, Dragon Seed LLC, has seen positive results from the plant trials of Bit Silica Plus. The supplement is expected to be introduced to other partnering farms. We believe our customers will be as enthusiastic about Bit Silica Plus as we are, and we look forward to our successful partnership with Bit Farm.”

In addition to its online presence, iFresh also has nine retail supermarkets along the U.S. eastern seaboard, with additional stores in Glen Cove, N.Y., Miami, and Connecticut opening soon. It also has an in-house wholesale business with locations in major U.S. cities.

Highfield Lines Up Ports for Muga Project

Europe, News, News Briefs, Potash

Junior potash and salt developer Highfield Resources Ltd., Navarre, Spain, has been lining up ports for the anticipated 700,000 mt/y of potash and salt it hopes to produce at its Muga Project (GM May 28, p. 1).

On Aug. 31, the company signed a nonbinding Memorandum of Understanding (MOU) with the Port Authority of Bilbao, while on Aug. 2 it announced the signing of a similar agreement with the Port of Pasaia. Highfield said the two ports in Northern Spain will both be key components of Muga’s supply chain and are central to the project’s competitive logistical advantage.

Under this MOU, the port confirms the availability of sufficient port capacity for up to 700,000 mt/y. Bilbao will facilitate the implementation of the requisite logistics infrastructure and services to meet the project’s needs. The port also commits to have all facilities for product handling and shipping operational for Muga’s Phase 1.

“This MOU is another step in getting the Muga mine into production,” said Highfield CEO Ignacio Salazar. “The port of Bilbao is a major European Atlantic port and will be a key export terminal for Muga given its capacity and its proximity and excellent connections to the mine.”

Bilbao port is located in northwestern Spain, some 220 kilometers by road of the Muga mine, and is among the closest ports to the mine. It is one of Spain’s largest ports and currently handles around 35.5 million mt including 4.7 million mt of dry bulk product annually. Highfield said there are excellent road and rail connections between Muga and the Bilbao port.

Over the years, Highfield has inked nonbinding offtake agreements for both potash and salt (GM May 1, 2020; Feb. 7, 2020; Sept 13, 2019; July 29, 2016).

Centrex Inks Microbial R&D Contract, Ships Rock for Organic Use, Updates Feasibility Study

Australia, News, News Briefs, Phosphate Rock, Specialty

Junior phosphate rock miner Centrex Metals Ltd., Adelaide, South Australia, reported that it has signed a Research and Development contract with Microbiology Laboratories Australia Pty Ltd., St. Marys, South Australia, to develop a new microbial product prototype to further increase the value and effectiveness of its Ardmore Direct Application Phosphate Rock Product (DAPR) from its mine in Northwest Queensland. Centrex said the Proof-of-Concept phase is expected to be completed by April 2022 and the Standard Product Evaluation by September 2022.

“Organic fertilizers are an exciting and rapidly growing part of the fertilizer industry,’ said Centrex CEO Robert Mencel. “Based on good science, microbe inoculants have the potential to significantly improve the effectiveness of direct application fertilizers. As a provider of low carbon emission environmentally friendly, low cadmium phosphate rock, Centrex intends to play a significant role in Australia’s organic fertilizer industry.”

Targeted traits for microbes include the ability to improve the release of phosphorus and potential other plant nutrients from Ardmore rock phosphate, plant growth benefits, and soil health benefits.

While Centrex expects the bulk of its phosphate rock to go to the phosphate fertilizer production market and said it has made significant progress in that area, it said an initial 25,000 mt parcel of 28 percent P205 phosphate rock has been made exclusively available to farmers for use as direct application phosphate rock. It said an initial shipment of rock was transported to the Australian East Coast for use as an organic fertilizer following a successful crushing trial.

In an updated Definitive Feasibility Study (DFS) released in August 2021, Centrex said ore reserves remain at 10.1 million mt at 30.2 percent P205, as was reported in its 2018 DFS. It continues to eye a 10-year mine life with annual production of 800,000 mt wet tons. It is now looking at an FOB Townsville, Australia, price rather than a CFR price, expecting that most future customers will arrange their own shipping. Updated pre-production capital costs are put at US$58.1 million, with total FOB Townsville cost at $92.15/mt.