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MDL Breaks Ground on Phos Rock Recovery Project; Mosaic, Export Markets Targeted

Mineral Development LLC (MDL), Bartow, Fla., said on March 24 it has broken ground on a $70 million phosphate rock production facility in Polk County, Fla. The plant is designed to produce 1.2 million st of high-quality phosphate rock per year. MDL’s facility is the first independent phosphate beneficiation plant built in the U.S. in over 30 years. A ceremonial groundbreaking will be held April 14 in Bartow

The Mosaic Co., Tampa, will be an MDL customer, both companies confirmed. MDL told Green Markets that while some of the rock is committed domestically, significant volumes will also be available for export.

MDL expects production to begin in fourth-quarter 2022. DCO Energy, Mays Landing, N.J., is the contractor for the MDL plant construction.

“This is a very clean and eco-friendly project involving only previously mined lands,” said MDL President and CEO Lance McNeill. “We are very proud of what we’re doing.”

MDL has a long-term, exclusive agreement to extract phosphate rock from land owned by Clear Springs Land Co., Winter Haven, Fla. Clear Springs bought the previously mined land from IMC-Agrico, a predecessor of Mosaic in 1999 for $8.2 million (GM Sept. 13, 1999).

Clear Springs has approximately 18,000 acres in Bartow, midway between Tampa and Orlando and within 100 miles of Port Canaveral. After a housing slump weighed on its initial plans to develop residential housing, Clear Springs turned to agriculture and has concentrated on farming, including berries, tomatoes, and cattle. Company founder Connecticut financier Stanford Phelps, who passed away in 2019, donated 20 acres of the land and $12 million for the Polk State College Advanced Technology Center, according to The Ledger.

An initial 4,400 acres will supply 18.5 million st to the 30-acre plant site. More Clear Springs and neighboring acreage is expected to supply up to 10 million st for the project and put the reserve life 20 years or more. MDL is exploring additional Clear Springs and neighboring acreage to accommodate a possible second plant.

Secondary recovery reprocesses old mine tailings into high-quality feedstock for fertilizer production. McNeill estimated that the process can recover up to 12 percent of the rock that was missed during the initial mining.

The project only extracts material from land that has been previously mined, the vast majority of which was disturbed before mandatory reclamation regulations. MDL’s operations will primarily use surface water from existing ponds, employ state-of-the-art water recycling methods, and restore the old mining land to current DEP reclamation standards. The process helps restore the land to its original state with native vegetation and natural surface water flow while providing high-grade product.

The company said since the project is on previously mined land and is not a greenfield, it has been well received by regulatory agencies, activist groups, local authorities, neighbors, and landowners.

MDL will produce rock that will be primarily upgraded in a fertilizer manufacturing facility. It said it will be able to produce rock with a range of qualities to meet customer requirements from 64-74 BPL or 30.2-33.9 percent P2O5 with low cadmium (less than 10 ppm). The company also said the rock has low metals content, including magnesium, aluminum, and iron. It said the easiest way to think about quality is that MDL will produce the “old” Florida phosphate rock that used to be exported over 20 years ago.

A company spokesperson said MDL’s rock might be a candidate for direct application in a limited set of circumstances, but it would not seek input certification for organic applications.

MDL said while this is its first secondary recovery project, it has done multiple other plants and operations in the industry over the past 60 years. MDL was founded in Lakeland, Fla. by the McNeill family, with current President and CEO Lance McNeill the third generation to be involved in the business. Its history in the fertilizer business also includes the founding of Lakeland Fertilizer Co., Florida Favorite Fertilizer Inc., and Tampa Tidewater Terminals Inc.

Last October, MDL closed on $118 million in financing that will fund the construction of its first plant and provide the working capital necessary to start up operations. It was raised via a $90 million tax-exempt bond issued through the Polk County Industrial Development Authority and $28.5 million of new equity. The tax-free bonds were purchased by large institutional investors. The new equity came from Plenary Capital, an infrastructure investment fund based in Vancouver, B.C.

The project will produce new job opportunities for the City of Bartow. MDL will primarily use local companies, vendors, and suppliers during construction and operation. McNeill said during operations MDL will directly employ 55 full-time people at the plant, and another 50 jobs will be created indirectly through full-time contractors needed for operations, logistics, and other professional services.

“The opportunity that MDL’s operation presents to the city of Bartow is significant,” said Bartow Mayor Scott Sjoblom. Because MDL will be connected to the City of Bartow’s utility network, the city benefits from their power purchases. “When its facility is operating, MDL will become Bartow’s biggest consumer of power, generating important revenue for the City.”

Conserv FS Expands Waterman Facility; Completion Expected by Year’s End

Conserv FS, an agricultural cooperative based in Woodstock, Ill., broke ground on March 21 on a large expansion project for its Waterman, Ill, facility. It includes both dry and liquid fertilizer storage, crop protection storage, and improved loading. The construction is being conducted by Greystone Construction, Shakopee, Minn., and is expected to be completed before the end of the year.

A new 7,500 st dry fertilizer building will be equipped with a 24 st blender and a NTEP certified Auto-Batch blending system. It will have the capacity to load eight semi-trucks per hour.

The project also includes 1.3 million gallons of liquid fertilizer storage, integrated with a crop protection mixing facility and warehouse. It will be equipped with three load bays providing both top and bottom load options with “hot-load” capabilities.

Also included will be a 24/7 unattended bay for after-hours availability of nitrogen solution loads with nitrogen stabilizers. Each of these bays can fill six semi-loads per hour (18 semi-loads total/hour for the facility).

The facility also features 72,000 gallons of bulk crop protection product storage and ample mini-bulk and package good storage to provide flexibility and capacity. Both the dry fertilizer and the liquid facility will contain automated systems integrated with ordering, operations, and accounting software, providing a streamlined processes and improved flow of information to the customer.

“The loading speed of this updated facility will be up to five times faster than the existing facility,” said Adam Day, Conserv FS Agronomy Marketing and Sales Manager. “Allowing us to service our customers at an increased pace while lowering our daily operating expenses through improved efficiencies. Storage capacities will allow for us to effectively handle customers’ in-season needs and keep them moving efficiently.”

All inbound and outbound loading will be done indoors for ease of operation and environmental awareness.

“These state-of-the-art facilities are built with safety and the environment being foremost in our thoughts, while at the same time providing an outstanding customer experience to our patrons, gaining them valuable time during peak-season operations,” said Jeff Kimmel, Conserv FS Facility Projects Manager.

“At Conserv FS we are committed to serving the farmers of today while planning for the future and the needs of the next generation of farmers,” said Dave Swigart, Conserv FS General Manager. “This large project at our Waterman facility demonstrates our commitment to the future of agriculture in our territory. We’ve been serving agriculture for nearly 100 years, and this project is an example of our commitment to serve the farmer of the future.”

Conserv FS was incorporated in 1928 and provides agronomy, energy, turf services, and other products. Conserv FS has eight agronomy locations, and the cooperative does business in 11 counties (eight in northeastern Illinois and three in southeastern Wisconsin).

Fertilizantes Heringer Volumes Up in 4Q, Full-Year

Brazil’s Fertilizantes Heringer, Viana, reported a significant uptick in fourth-quarter and full-year volumes though expenses and exchange rates on U.S. dollar-denominated debt impacted net income.

Fourth-quarter volumes were 474,567 mt, up 45 percent from the year-ago 327,361 mt. Conventional fertilizer volumes represented 52 percent of the total at 246,000 mt, up from the year-ago 189,000 mt. Specialty volumes were 48 percent at 229,000 mt, versus the year-ago 138,000 mt.

Fourth-quarter net income was R$45.8 million on net revenue of R$821.1 million, compared to the year-ago R$899.7 million and R$488.6 million. The year-ago period represented a positive impact from the adjustment to fair value under the restructuring under the company’s judicial recovery. Adjusted EBITDA was up at R$97.7 million from the year-ago R$15.2 million.

Full-year volumes were up 76 percent, to 1.38 million mt from 2019’s 785,457 mt. Conventional fertilizer volumes represented 54 percent of the total at 743,000 mt versus the year-ago 432,000 mt, while specialty was 46 percent at 636,000 mt versus the year-ago 353,000 mt.

Expenses and exchange rates weighed heavily on the company, which posted a full-year net loss of R$199.2 million on net revenue of R$2.12 billion, compared to the year-ago net income of R$664.6 million and R$1.18 billion, respectively. Adjusted EBITDA was a positive R$182.5 million, versus the year-ago negative R$48.7 million.

Going forward, the company has a positive outlook citing expectations for increased corn and soybean production and the recent growth in the country’s agribusiness sector.

Fertilizantes Heringer Expects Two More Plants to Resume Production in 2021

Brazil’s Fertilizantes Heringer, Viana, reported March 26 that it expects two more of its blending plants to return to production in 2021. They include Rosario do Catete, SE, which has installed capacity of 450,000 mt/y and storage capacity of 70,000 st/y; and Rio Verde, GO, with capacity of 300,000 mt/y and storage of 30,000 mt.

Once these two plants are up, the company will have active total capacity of 4.19 million mt/y and storage of 638,000 mt.

The two plants will join nine others already in production: Ourinhos, SP; Iguatama, MG; Catalao, GO; Paulinia, SP; Manhuacu, MG; Candeias, BA; Viana, ES; Tres Coracoes, MG; and Dourados, MS.

Three plants remain inactive: Porto Alegre, RS, Rio Grande, RS, and Paranagua, PR. They have combined capacity of 1.21 million mt/y and storage of 199,000 mt.

As previously reported, the company announced in February that it is selling a plant at Uberaba, MG, to Brazilian fertilizer distributor Cibrafértil Group for R$55 million (approximately US$10.25 million at February exchange rates (GM Feb. 26, p. 1)

FCA Agrees to Buy Farm Nutrient Assets; FCA/Alceco Unification Study Underway

First Cooperative Association (FCA), Cherokee, Iowa, recently announced that it has signed a purchase agreement to acquire the seed, crop protection, and commercial fertilizer business of Farm Nutrients LLC, and its agronomy center in Rembrandt, Iowa. Farm Nutrients is owned by Rembrandt Enterprises Inc., Spirit Lake, Iowa, which will retain the chicken litter management and spreading portion of the business.

FCA will be staffing the business, and is taking over the existing seed, crop protection, and commercial fertilizer contracts and application services. It is FCA’s goal to continue to service all crop protection and commercial fertilizer acres and to continue to treat and sell seed from this location. FCA said it is excited to expand with the new up-to-date facility.

FCA provides products, services, and expertise in agronomy, energy, grain, and feed through its 20 locations throughout northwest Iowa. It is ranked 65th in the 2020 listing of CropLife’s top 100 Largest Ag Retailers in the U.S. FCA said it is the oldest continuously active cooperative elevator in the nation. It traces its history back to Farmers Cooperative Elevator of Marcus, which was first incorporated on Dec. 12, 1887. FCA was formed in 1997 when four cooperatives unified, including the Farmers Cooperative Association based in Marathon, Agland Coop at Alta, Farmers Cooperative at Aurelia, and Farmers Cooperative in Cleghorn.

Farm Nutrients was founded in 2003 by Rembrandt Enterprises, which is ranked 83rd in CropLife’s top 100 Largest Ag Retailers in the U.S. in 2020, spreading chicken litter in Iowa, Colorado, and Nebraska.

In the meantime, FCA is in the midst of a unification study with another cooperative – Alceco of Albert City, Iowa (GM Dec. 18, 2020). Alceco, which stands for Albert City Elevator Cooperative, was formed in 1905 but grew over the decades through multiple expansions and acquisitions, including a merger in 2008 with Midwest Farmers Cooperative.

Alceco partnered with Cargill in 1997 to form Ag Partners LLC, a joint venture that provides grain, agronomy, feed, and petroleum products and services from 17 retail and wholesale locations in Iowa. Ag Partners now operates as a solely-owned subsidiary of Alceco after the company announced last summer that it had acquired full ownership from Cargill (GM July 31, 2020).

“In many cases, Alceco’s strengths are FCA’s weaknesses, and vice versa,” said FCA Board President Charles Specketer in FCA’s spring newsletter. “They have rail access, which we lack and we need. They are strong in feed, which provides a viable market for local grain. In fact, Alceco is the second largest feed company in Iowa.

“FCA brings a lot to the table, too,” he added. “We have the big agronomy center in Aurelia. We’re the largest supplier of soybeans to AGP in the area. We’re also strong in the energy business.”

Specketer noted that the FCA and Alceco trade areas overlap in certain areas and that the company’s serve the same sector, including agronomy, grain, feed and energy.

FCA General Manager Merle Lyons said FCA needs more fertilizer facilities in the Laurens, Marathon, and Webb areas, as well as the northwest part of its trade territory.

“Size does matter when it comes to gaining economies of scale, spreading out fixed costs, getting volume discounts on input purchases, and being able to afford the best talent and technology,” he said, noting that recruiting talent is one of the biggest challenges facing employers in rural Iowa, with shortages at all levels, including management. As for grain storage, Lyons said FCA has to do better than meet customer needs – it has to exceed them in order to be viable in the future.

In its spring newsletter, FCA said both of the cooperatives have much to offer the other. FCA noted its own agronomy center in Aurelia, but said it needs facilities in the Laurens, Marathon, and Webb area, and in the northwest part of its trade territory.

It also noted its strength in soybean supply and energy. Alceco offers rail loading facilities, and is the second largest feed supplier in Iowa. Both of these would offer FCA customers more market options for exports and feed. FCA also noted that it wants to make sure that it has the storage available to serve customers. It also said there is a significant labor shortage, including management.

The Fertilizer Institute – Management Brief

The Fertilizer Institute (TFI) said on March 30 that it has created the Ford B. West Future Leaders program to highlight Ford’s love of the industry, the people working in the industry, and his friendly demeanor to all he met. West passed away on Feb. 14 following a 15-year battle with prostate cancer (GM Feb. 19, p. 1). During his career at TFI, Ford worked in membership, government affairs and policy, and as the President.

TFI is asking industry members to step forward to make a gift to support this effort and honor this amazing leader. The goal of the campaign, which will run through June 2022, is $500,000. Every donation helps achieve the goal to lift up young leaders and support programs of a similar nature as they develop over time.

“Ford was passionate about the fertilizer industry, and he was passionate about young people and networking,” said TFI President and CEO Corey Rosenbusch. “This program will help lift young leaders and give them the connections and tools to further their careers for the betterment of the entire fertilizer industry.”

Donations can be made at online at the Nutrients for Life Foundation website or by sending checks to the Ford West Memorial Fund at 4201 Wilson Blvd., Suite 700, Arlington, VA 22203.

Proquigel Eyes Lease of Power Plant

Petrobras, Rio de Janeiro, said on March 16 it is in negotiations with Proquigel Quimica SA, a unit of Unigel Group, to lease the ThermoCamacari Thermal Power Plant in the state of Bahia. Proquigel would reportedly use electricity from the natural gas-fired plant to supply at least one of the two nitrogen plants that it leased from Petrobras – Fafen-Bahia and Fafen-Sergipe, according to BNAmericas.

Proquigel has a ten-year lease on the two nitrogen plants (GM Aug. 24, 2020), and is slated to begin urea production in first-half 2021. The timeline for production has most recently been reported as April-May, according BNAmericas. The ThermoCamacari plant is located in Camacari, Bahia, and has installed capacity of 120 MW. Petrobras has been looking for alternatives for the plant for some time; a strategic alliance inked with Total SA in 2016 collapsed.

Meristem Crop Performance Group, LLC – Management Brief

Frank Peterson has joined Meristem Crop Performance Group, LLC, Columbus, Ohio, as Sales and Business Director, Western Region. He has more than more than 30 years of experience in agribusiness, coming to Meristem from AgVenture, the nation’s largest network of independently owned and managed seed companies, where he held a business development role.

Earlier, Peterson founded and built Precision Grain Analytics in Bloomington, Ill. He began his career with Syngenta legacy company Ciba Seeds, where he rose to National Sales Manager. A native of Vermillion, S.D., where he still operates a family grain farm, Peterson has a degree in agronomy from South Dakota State University and now lives in Omaha, Neb.

Nutrien Looks to Boost ESN Production

Nutrien Ltd., Saskatoon, is looking at ramping up production of its time-release “smart” nitrogen product, President and CEO Chuck Magro told Bloomberg in an interview this week. Speaking about the company’s ESN Smart Nitrogen, slow release fertilizer, he said, “We’re basically selling everything we can produce. We’re now looking at capacity expansion in this area because of future demand.”

Nutrien has the capacity to produce 400,000 mt of ESN, a product that currently accounts for about 2 percent of total fertilizer sales for the company. Magro sees more demand from farmers for the smart fertilizer during a period of heightened environmental awareness around agricultural practices. Governments and companies are looking to farmers to reduce greenhouse gas emissions and, in turn, growers are increasingly seeking ways to curb waste.

Government policies and incentives are expected to drive more sustainable farming practices, which should lift demand for these more “climate friendly” products, Magro said.