All posts by mickeybarb@charter.net

TFI Launches Certified Biostimulants Program

News, News Briefs, Specialty, U.S.

The Fertilizer Institute (TFI) is introducing the Certified Biostimulants Program, a program based on US Biostimulant Industry Guidelines to award labels to biostimulant companies indicating that their products meet industry recognized standards for efficacy, safety, and composition, CropLife reported on June 26.

Announced at the InfoAg Conference in St. Louis, Mo., the Certified Biostimulants Program will begin accepting applications over the next few weeks, according to Ed Thomas, Vice President of Government Affairs at TFI. The initial cost for a product review will be $1,800, with a $750 renewal fee applied at the two-year mark, according to CropLife.

“This is built around the need of ag retailers for TFI to step up to the plate and vet these products,” Thomas said at the program launch. “We want to help ag retailers with the onslaught of biostimulant products coming across their desks every year and get these down to a more manageable level.”

TFI and the non-profit US Biostimulant Coalition (USBC) reached a formal agreement in December 2020 to form a Biostimulant Council and work together in advancing policy and regulatory frameworks that increase biostimulant market access and encourage research and innovation.

RFPA Seeks Licensing Instead of Export Quotas

News, News Briefs, Russia

The Russian Fertilizer Producers Association (RFPA) has proposed replacing quotas for fertilizer exports with licensing not limited by quotas, according to an Interfax report on June 28, citing RFPA President Andrey Guryev. The proposal is to be sent to the Industry and Trade Ministry soon, Guryev said in a press statement.

The RFPA also plans to ask the Russian government to allocate additional quotas this autumn because “producers, for reasons beyond their control, could not use quotas in the amount of 550,000 mt provided by the government.”

According to Guryev, Russian farmers by the end of June have already purchased 70% of the fertilizer they are expected to buy in 2023 (5.4 million mt in 100% nutrient equivalent). They are now buying for autumn planting.

In late May, the Russian government signed a decree extending its system of export quotas on nitrogen fertilizers and certain other fertilizer products from June 1 through Nov. 30, 2023 (GM June 2, p. 1). The total export quota authorized for the period was more than 16.3 million mt, according to the government’s press service.

The government had also increased the fertilizer export quota effective from Jan. 1 to May 31, 2023, for urea, ammonium nitrate, NPK fertilizers, and MAP by almost 2 million mt from the previously approved 12.6 million mt. According to the government’s press service, the measure will allow fertilizer producers to export unclaimed balances of finished fertilizers.

Russian Fertilizer Production Up 5% in May

News, News Briefs, Nitrogen, Phosphate, Potash, Russia

Russian fertilizer production in May increased by 6% year-over-year, to 2.2 million mt of active ingredient, Interfax reported, citing the Russian Federal State Statistics Service (Rosstat). May production was up 1.5% compared with April.

Potash output in May rose 11% year-over-year and 4% from April, to 0.7 million mt of active ingredient. Nitrogen fertilizer production in May increased 7% year-over-year to 1.1 million mt, but was down 0.4% from April. Phosphate fertilizer production in May fell 5% year-over-year to 0.4 million mt, but rose 3% from April.

In the five months through May 31, 2023, Russia produced 10.3 million mt of fertilizers (active ingredient), down 0.8% year-over-year. Potash production fell 12%, to 3.1 million mt, phosphate fertilizer output rose 2%, to 1.9 million mt, and nitrogen fertilizer output increased by 6%, to 5.3 million mt.

Ammonia production fell 5% in the first five months of the year, to 7.2 million mt, but was up 5% in May compared with May 2022.

EuroChem Increases Stake in Fertilizantes Heringer

Brazil, Europe, News, News Briefs

EuroChem Comércio de Productos Químicos Ltda., a subsidiary of EuroChem Group AG, on June 27 acquired an additional tranche of shares equivalent to 28.49% in Fertilizantes Heringer SA, and now owns a 79.98% stake in the Brazilian fertilizer company, according to a statement on Fertilizantes Heringer’s website

EuroChem paid around R$230 million (approximately US$47.6 million at current exchange rates) for the shares, which it acquired through a share auction. Settlement of the transaction was made on June 29.

The Zug, Switzerland-based fertilizer group bought a 51.48% stake in Fertilizantes Heringer last year (GM April 1, 2022) for R$554 million, and in December launched a second public offering for the remaining minority shares (GM Jan. 6, p. 27). An earlier attempt to buy out minority shareholders failed (GM Dec. 2, 2022; Sept. 2, 2022).

For EuroChem to achieve its goal of taking Heringer private, it would still need to acquire the remaining 20.02% of the company’s shares. Some 10% of these remaining shares are held by OCP International Cooperatieve US, according to the Fertilizantes Heringer statement.

Unigel Idles Bahia Plant After Sergipe Shutdown

Brazil, News, News Briefs, Nitrogen

Brazil nitrogen and chemical producer Unigel has temporarily halted production at its nitrogen fertilizer plant in Camacari, Bahia, in addition to delaying the restart of its Sergipe nitrogen facility, while it tries to renegotiate contracts for the supply of natural gas and struggles to avoid worsening financial problems.

Valor Econômico reported in May that Unigel planned to delay the Sergipe restart for 90 days, starting in June, while the Bahia location would remain in operation (GM May 26, p. 30). Unigel has now confirmed, however, that “both nitrogen fertilizer units are in a state of temporary hibernation, while negotiations for the suspension of employment contracts take place, with their workforce active in preventive maintenance activities and inventory movement.”

The Sergipe unit has an installed urea production capacity of 1,800 mt/d, and can sell ammonia, carbon dioxide, and ammonium sulfate, while Bahai has an installed urea production capacity of 1,300 mt/d, with the ability to sell ammonia, carbon dioxide, and automotive liquid reducing agent Arla 32.

Valor Econômico reported that Unigel has been delaying payment to suppliers of its agriculture business in the wake of compressed margins in the ag and chemical sectors since the second half of 2022. In May, Unigel began to postpone its main expansion projects and renegotiate payment terms to suppliers.

South Korean Firm to Build Nigerian Urea Plant

Ammonia, News, News Briefs, Nigeria, South Korea, Urea

South Korea’s Daewoo Engineering and Construction Co. has secured a Won342.7 billion (approximately $262 million at current exchange rates) order to build another ammonia and urea complex in Nigeria for Indorama Eleme Fertiliser and Chemicals Ltd. (IEFCL) through a local subsidiary, according to South Korean news agency Yonhap.

The new facility is to be built at Port Harcourt and will be IEFCL’s third ammonia and urea plant in Nigeria. It will be built adjacent to IEFCL’s two existing plants, which have a combined granular urea production capacity of 2.8 million mt/y.

According to Yonhap, the new plant will take 35 months to complete. Daewoo, which built IEFCL’s two earlier plants in Nigeria, has not disclosed the capacities of the new facility.

IEFCL is a fully owned subsidiary of the Singapore-based Indorama Group, after the group in January acquired the remaining 15% of the company (GM Jan. 20, p. 27). The seller was reported to be UK-based Actis Capital.

Nigeria has two other urea producers. Dangote Fertiliser Ltd. has nameplate capacity of 3 million mt/y at its plant in the country’s Lekki Free Trade Zone, about 50 km east of central Lagos, which started up in the first half of 2021 (GM June 11, 2021). Notore Chemical Industries Plc also operates a plant with nameplate capacity of around 500,000 mt/y at Omne near Port Harcourt.

As new production capacity comes onstream and current urea domestic demand is reported at less than 1 million mt/y, Nigeria’s urea exports have grown exponentially in recent years, reaching 2.86 million mt in 2022, up from 1.07 million mt in 2021 and 442,293 mt in 2020, according to Trade Data Monitor. Exports for January-March 2023 totaled 730,042 mt.

Agropolychim to Offer AN Based on Blue Ammonia

Ammonium Nitrate, Blue Ammonia, Eastern Europe, News, News Briefs

Bulgarian fertilizer producer Agropolychim AD in July plans to offer a new range of ammonium nitrate (AN) on the local market produced using blue ammonia, according to a SeeNews report, citing the company

Agropolychim recently took “a pilot delivery” of blue ammonia from Saudi Arabian Mining Co. (Ma’aden), and, according to the report, is the first company in the European Union to receive a blue ammonia cargo from the Saudi producer.

Last month, Agropolychim announced a partnership with Swiss industrial equipment supplier Casale SA that will ultimately increase the Bulgarian company’s nitrogen fertilizer production capacity to more than 1.5 million mt/y (GM May 26, p. 31).

Casale will license and engineer a new state-of-the-art dual pressure nitric acid unit that will also allow the enhancement of local green energy production. The plant is scheduled to be commissioned before the end of 2027.

Ma’aden in November last year revealed plans to export blue ammonia after securing an accreditation certificate to produce and export the product the previous month. The Saudi company has been granted certification to ship more than 138,000 mt of blue ammonia products, according to its website.

Oman Inks Potash Exploration and Mining Deal

Middle East, News, News Briefs, Potash

Oman’s Minister of Energy and Minerals, Salim Al Aufi, has signed an agreement with Oman-based Sindbad Mining Resources Co. for the exploration and mining of potash in the country’s concession area 53-A in Umm Al Samim, according to a report by the Oman Observer.

The agreement, which was inked on June 25, will allow Sindbad Mining Resources Co. to explore and mine potash in the concession area. Umm Al Samim is a region of quicksand on the eastern edge of the Rub al’khali desert in Central Oman. Sindbad already is involved in several mining projects in Oman, including copper mining.

Another Oman company, Muscat-based Gulf Mining, earlier was conducting exploratory work on the potash deposits in Umm Al Samim (GM April 19, 2019), although it is unclear if this is the same concession area awarded to Sindbad Mining Resources Co.

Gulf Mining was pursuing a potash mining project in Umm Al Samim and was targeting the establishment of a potassium sulfate plant in Oman’s Duqm Special Economic Zone. Gulf Mining was last heard looking for a partner for the project.

The mining sector is a priority for Oman’s economic diversification strategy, and the government has taken several steps to attract investment and promote the development of the sector.

Mardie Salt/SOP Project Faces Cost Hike, Sales Delay

Australia, News, News Briefs, Specialty, Sulfate of Potash

Australian junior salt and sulfate of potash (SOP) producer BCI Minerals Ltd. has flagged a A$500-million (approximately US$331 million at current exchange rates) cost hike at its Mardie salt and potash project on the Pilbara coast of Western Australia, and also warned of delays to first production and sales.

BCI in a June 20 statement revealed the results of its design and cost review, which has updated the cost estimate for Mardie to A$1.62 billion, with a base estimate of A$1.42 billion and a contingency of A$208 million. This marks a significant increase over the A$913 million cost previously estimated for the project.

BCI Managing Director David Boshoff said in a June 20 presentation that the design review had identified cost pressures in a number of areas, particularly the civil works, which impacted the cost of the ponds, roads, transfer stations, crystallisers, and a jetty pad.

The review process has retained the production level of 140,000 mt/y of SOP and 5.35 million mt/y of high purity salt (GM July 15, 2022), but BCI said the timing has been delayed for the first shipments. First SOP is now targeted for mid-2027 instead of the initial target of the first quarter of 2026, while first salt is now targeted for mid-2026 rather than the first quarter of 2024.

The operation is ultimately planned to include a 100 km2 evaporation pond and crystallization system, two processing plants, and a new export facility. BCI on June 27 reported that it had executed a term sheet with Japan’s Itochu for a salt offtake agreement from Mardie.

Itafos Files Updated Report for Farim Project

Houston, TX, News, News Briefs, Phosphate

Houston-based Itafos Inc. announced on June 28 that it has filed the National Instrument Standards of Disclosure for Mineral Projects 43-101 technical report for the Farim Phosphate Project, a high-grade phosphate mine project located in the northern part of central Guinea-Bissau, West Africa.

The technical report, entitled “Farim Phosphate Project – NI 43-101 Technical Report and Feasibility Study,” was prepared for Itafos by Ausenco Engineering Canada Inc., and summarizes the results of an updated Feasibility Study for the project and all work conducted between 2015-2022.

Itafos CEO David Delaney in May (GM May 19, p. 27) said the updated feasibility study confirms that the project “has robust economics and demonstrates that the Farim Project has the potential to be an important phosphate producing asset.” Highlights of the study included:

  • After-tax net present value (NPV) (10%) of $572 million at a base case life-of-mine (LOM) average rock price of US$197.5 per mt concentrate.
  • After-tax internal rate of return (IRR) of 34.9% and after-tax payback on pre-production capital expenditures of 4.2 years.
  • Estimated pre-production capital expenditures of $308 million.
  • LOM production of approximately 2.19 million mt/y of run-of-mine (ROM) phosphate matrix on an as-received basis (at approximately 20% moisture) or 1.75 mt/y ROM phosphate matrix on a dry basis. The assessment of mineable phosphate matrix reserves was based on a 25-year mine plan with an open pit design.
  • Proven and Probable Mineral Reserves are 43.8 million mt at 30.0% P2O5.

The release of the study and the filing of the technical report come as Itafos is weighing its strategic alternatives (GM March 17, p. 1).