All posts by mickeybarb@charter.net

Class Action Suit Filed Over Piney Point Leak

A class action lawsuit has been filed against property owner HRK Holdings LLC over the leak from the Piney Point phosphogypsum stack that occurred in late March and early April (GM April 16, p. 1).

The case was filed on Aug. 6 in the Twelfth Judicial Circuit of Florida in Manatee County Circuit Court on behalf of client Leigh Iannone, owner of Gulfside Dive Services, “who has already suffered harm and is at imminent risk of suffering additional damage arising from defendant’s improper maintenance of millions of pounds of pollutants near her home.”

According to an April 2, 2021 tweet, Manatee Director of Public Safety Jacob Saur issued an emergency evacuation notice to all individuals within a half-mile radius of Piney Point, including residents and a local prison, warning of the “imminent uncontrolled release of wastewater.”

Those qualifying for the class include homeowners who were subject to the evacuation orders and deprived of the use of their homes and suffered losses and damages in the form of economic or noneconomic damages.

While the Florida Department of Environmental Protection (FDEP) did allow some 215 million gallons of contaminated wastewater to be released into Port Manatee harbor, there was ultimately no phosphosgypsum stack collapse. The discharges were stopped on April 9, and FDEP reported on April 10 that the leak in the gypstack had been sealed with a steel plate.

In the meantime, the state of Florida plans to budget as much as $115 million to treat contaminated water and take steps to permanently close the site.

BHP Likely to Proceed on Jansen Potash, Says Analyst

will approve Phase 1 of its Jansen potash project in Saskatchewan, Canada, within three to four months, according to a Bloomberg report.

BHP said earlier this month that the Stage 1 project remains on track to be presented to the group’s Board of Directors for a Final Investment Decision (FID) in the middle of the 2021 calendar year (GM April 23, p. 1).

Scotiabank analyst Ben Isaacson said in an April 26 note there will be market demand for Phase 1 potash by 2030, the estimated year for completion, if approved. The forecast comes despite feedback from BHP shareholders that they largely do not want more capital invested in the project. However, analysts cite BHP’s CEO Mike Henry as continuing to discuss potash as favorable in the long-term.

Jansen Stage 1, should it go ahead, will require another US$5.3-$5.7 billion to be completed, according to BHP estimates, and would provide 4.3-4.5 million mt/y of potassium chloride production capacity. The company already will have sunk US$2.972 billion into the current investment program to complete the shafts at Jansen; that program is now 91 percent complete.

In February, Henry was reported to have brought in external consultants to review “all aspects” of the Jansen potash project ahead of the upcoming FID decision, according to a UBS AG note of Feb 23, as cited by Bloomberg (GM Feb 26, p. 1). Henry was reported at the time not to be happy that it had taken the mining group a decade to get where they were on the project.

EuroChem Reportedly Planning to Challenge E.U. AD Duties on Russian AN

EuroChem Group AG plans to challenge the European Union’s (E.U.) decision last December to maintain antidumping duties on imports of Russian ammonium nitrate (AN), according to an Interfax report this week.

EuroChem subsidiaries Nevinnomyssky Azot and JSC Azot already have brought an action contesting the duty with the European Union General Court in February, according to the report, citing the E.U. Journal.

The E.U. in December opted to continue its quarter-century-old antidumping measures on AN originating from Russia (GM Dec. 18, 2020), following a 15-month investigation launched in September 2019 (GM Sept. 27, 2019). The E.U. re-imposed tariffs of up to between €28.78 and €32.71/mt (approximately $34.79-$39.54 at current exchange rates) on AN from Russia.

The European Commission (E.C.) found in favor of keeping the trade measures in place, as its probe had found there is likely continuation of dumping and injury. While the E.C. found AN imports from Russia accounted for less than 1 percent of AN consumption in the E.U., it concluded that abolishing antidumping duties likely would result in Russian exporting producers re-directing AN into the region from other markets should antidumping duties be allowed to lapse.

According to this week’s news report, EuroChem believes the E.U. “violated its duty to examine carefully and impartially all the relevant aspects of the individual case when it initiated the expiry review.” EuroChem had not responded to Green Markets’ enquiries by press time.

Under the World Trade Organization/E.U. “sunset” review rules, the measures are allowed to continue for up to another five years.

Belaruskali Aims to Reach Output Capacity at Petrikov by Early 2022

Belaruskali said it plans to reach output capacity at its Petrikov potash mining operation in Belarus’ Gomel region by early 2022, according to a BelTA report, citing the Petrikov Mine Administration on April 29.

The mine has a design capacity of 1.5 million mt/y and produced its first ore in January 2020 (GM Jan. 3, 2020). The potash processing plant was commissioned in June (GM June 12, 2020) and the company made the first commercial shipment of potassium chloride from Petrikov – to the domestic market – in August 2020 (GM Aug. 28, 2020).

In this week’s news report, the producer said deliveries of potassium chloride to the domestic market continue. It said over 50,000 mt was shipped to customers in 2020.

Belaruskali also reported that the production capacity of Petrikov may be increased to 3 million mt/y at a later stage. According to the company, the mine’s potassium reserves of about 2.2 billion mt are expected to keep the mine operational for 120 years.

Belaruskali Signs New Collective Labor Agreement with Two Trade Unions

Belaruskali reported on April 29 that a new collective labor agreement has been signed following negotiations with two trade union organizations representing employees of the company.

In an April 29 statement on its website, the Belarus producer said some 20 “significant” amendments have been made to the collective labor agreement.

It said most of the amendments related to “the improvement of social status” of employees, an increase in “material assistance,” and an increase in the number of employees receiving benefits, as well as the establishment of “additional guarantees.”

Belaruskali said more than 50 points of the collective labor agreement were brought into compliance with Belarus labor legislation following a change to the country’s Labor Code.

For the first time, the collective labor agreement includes a section “Working with youth,” developed jointly with the young employees of the company.

The new agreement comes into force on its signing. Belaruskali did not indicate how many of its employees are represented by the two trade unions.

Port of Montreal Strike Nears End as Industry Warns of Major Fertilizer Impact

Canadian lawmakers early on April 29 passed legislation that will require striking longshoremen at the Port of Montreal to return to work. A general strike at the port began on April 26, resulting in a complete shutdown of cargo handling and docking services that affected all terminals except liquid bulk handling, grain, and Oceanex service.

The federal government had earlier issued notice that it was preparing back-to-work legislation if needed. The port on April 25 said clients should expect delays in delivery “for the next few days and even weeks” due to the strike, and warned that a prolonged disruption of port activities could result in daily losses of C$10-$25 million for the Canadian economy.

The legislation, which passed with a 255-61 vote, will require longshoremen at the port to return to work immediately after it takes effect, which could come as early as 12:01 a.m. on May 1 if the Senate approves the bill on April 30, which is expected. The longshoremen, represented by Canadian Union of Public Employees Local (CUPE) 375, will also be prohibited from further strikes until they reach a new collective bargaining agreement with the Maritime Employers Association (MEA).

The longshoremen have been without a contract since late 2018. Reported disputes over working conditions and schedules led to an 11-day strike last summer, while the MEA’s recent decision to suspend minimum pay guarantees in response to a drop in port cargo volumes led to a partial strike again on April 13, with longshoremen refusing to work overtime or extend their shifts beyond eight hours. As of April 17, striking workers had also stopped Saturday and Sunday shifts in advance of the general strike on April 26.

Fertilizer Canada on April 23 called on Prime Minister Trudeau and his government to immediately implement back-to-work legislation and work quickly to end the strike and get fertilizer moving again.

The trade organization said decisive action was needed to mitigate the impact of the strike on Canadian farmers, particularly in Quebec and Atlantic Canada. It noted that hundreds of thousands of tons of fertilizer enter Canada through the Port of Montreal during the spring planting season, and warned that up to 1 million acres in Eastern Canada could go unfertilized in one week if the strike were allowed to continue.

“Just as this strike begins, farmers are in a critical spring seeding season,” said Karen Proud, President and CEO of Fertilizer Canada. “As Canada continues to fight COVID-19, our citizens need a food supply that they can count on. Any strike will mean that essential fertilizer products cannot reach farmers in Eastern and Atlantic Canada. This strike threatens food security at a critical juncture.”

Fertilizer Canada also urged the government to implement a “long-term action plan” to prevent future labor disputes in services that are essential to Canada’s food chain. According to Bloomberg, Montreal is Canada’s second busiest port, handling 1.6 million containers with 35 million metric tons of goods last year.

JPMC Shareholders Approve Decision to Sell Nippon Jordan Fert Co.

Jordan Phosphate Mines Co.’s (JPMC) shareholders have approved a board decision to sell all of the company’s shares in Nippon Jordan Fertilizer Co. (NJFC). The shares will be sold after conducting the required economic feasibility study and “for the best prices,” according to a company filing to the Amman Stock Exchange on April 28.

Some 93.13 percent of shareholders approved the board’s proposal to sell the company’s entire holding in NJFC at an Extraordinary General Assembly Meeting held on April 28.

JPMC holds a 70 percent stake in NJFC. Other shareholders are Arab Potash Co. and Japan’s Mitsubishi Corp., holding 20 and 10 percent stakes, respectively, according to NJFC’s website. Original participants also included Japan’s Zen-Noh, Mitsubishi Kasei, and Asahi.

Based in Aqaba, NJFC was established in 1992 (GM June 22, 1992) and began operations in 1999. It produces DAP/MAP and NPK and NPs, with a production capacity of 300,000 mt/y. DAP/NPK production last year was 224,678 mt , up from 197,404 mt in 2019, while sales were 207,667 mt, up from 2019’s 176,577 mt,  according to information on JPMC’s website.

MHI Joins New Project to Achieve Safe Use of Ammonia as Shipping Fuel

Mitsubishi Heavy Industries Ltd. (MHI), Minato, Tokyo, is set to participate in a newly-launching project to develop guidelines for the safe usage of ammonia as a shipping fuel.

The project is led by The Mærsk Mc-Kinney Møller Center for Zero Carbon Shipping, a research institute based in Copenhagen established in June 2020 to promote decarbonization of the maritime shipping industry.

MHI will participate as a founding partner of the Center, mainly through two group companies: Mitsubishi Shipbuilding Co. Ltd. and Mitsubishi Heavy Industries Marine Machinery & Equipment Co. Ltd.

Project collaboration will also include Lloyd’s Register Group Ltd., the world’s oldest classification society, based in the U.K. On April 19, Japanese shipping company NYK Line also announced its participation in the new project.

The ultimate aim of the project is to decarbonize the maritime shipping industry through the safe use of ammonia as a shipping fuel, said MHI.

Haldor Topsøe Reports Acron’s Ammonia-4 Unit Fully Ramped Up

Danish technology firm Haldor Topsøe this week reported Acron Group’s Ammonia-4 plant at the Veliky Novgorod site in northwest Russia is now operating with a capacity of over 2,500 mt/d following a revamp and the passing of guarantee test runs.

This latest upgrade of the Ammonia-4 unit was materially completed last November (GM Dec. 18, 2020). The project has increased the unit’s production capacity by 70,000 mt/y to 900,000 mt/y, and takes total current ammonia production capacity at Veliky Novgorod to 2.2 million mt/y.

The plant’s heat exchange reformer (HTER) reactor was the first to be put into operation in the FSU region, according to Haldor Topsøe.

Acron currently is working on revamps of the Ammonia-2 and Ammonia-3 units at Veliky Novgorod, which on completion will increase each of the plant’s production capacity by over 30 percent, to 2,300 mt/d each. The revamp contracts were awarded to KBR, Houston, last month (GM March 26, p. 34).

The completion of the first revamp project, including commissioning and start-up, is expected in March 2023.

“Boosting the [production capacity] of the Ammonia-4 plant is an important project of Acron Group’s investment program. Increasing its capacity will allow us to sufficiently increase production of nitrogen and compound fertilizers at our Veliky Novgorod site,” said Acron Group Chairman Alexander Popov .

The Russian group expects to bring on stream its Urea 6+ urea project at Veliky Novgorod in the current quarter, which will increase the urea unit’s production capacity by 520,000 mt/y (GM April 23, p. 30).

It launched another nitrogen project at the site in March to build a calcium nitrate production facility – its first – with 100,000 mt/y capacity (GM March 19, p. 34).The project is scheduled for commissioning in 2022.

Acron Develops New NPKs for Africa

Acron Group, Moscow, has developed several new brands of NPK fertilizer that are tailored for the cereal crops grown in West and East Africa. The Russian fertilizer group has shipped over 25,000 mt of the new NPK brands to countries in the regions, Acron said on April 26.

The key advantages of the new brands are additional nutrients – namely calcium, magnesium, and sulfur – and crucial micronutrients zinc and boron. They also have minimal acidity effect, which is significant for those African countries where the soil acidity is already high, said Acron.

The new brands, which are being produced at the group’s Veliky Novgorod site in northwest Russia, have been developed for growing most cereals, specifically maize, wheat, and barley. They comprise: 23-10-5+S+Mg+Zn, 23-9-6+S+Ca+Mg+B, 22-20+S+Ca+Zn, and 20-10-10+S.