All posts by mickeybarb@charter.net

Ukraine Consumes 1M mt of AN in 2022, Report Says

Ammonium Nitrate, News, News Briefs, Ukraine

Ukraine’s consumption of ammonium nitrate (AN) last year totalled 1 million mt, of which 330,000 mt were imported, according to a Fertilizerdaily report, citing Head of Ostchem Holding Sergey Pavlyuchuk.

The country also consumed 410,000 mt of urea, of which 225,000 mt was imported material, and 580,000 mt of UAN, of which 190,000 mt were imported, according to the report.

With the spring sowing season just around the corner, Ostchem – according to the report – has reduced retail prices for nitrogen fertilizers due to increased output at the group’s plants and a decrease in natural gas prices.

The price for urea has been cut by UAH2,000 (approximately $54.21 at current exchange rates) to UAH36,000 ($975.74) per ton (excluding delivery) and UAN by UAH4,000 ($108.42) to UAH29,000 ($786.02) per ton, according to the report.

Ostchem is the holding company for Group DF’s nitrogen fertilizer production, logistics, and shipping assets. Its fertilizer production units in Ukraine comprise Azot Cherkasy, Severodonetsk Azot, and RivneAzot.

While Azot Cherkasy and RivneAzot are operating, Severodonetsk Azot, which is located in eastern Ukraine in the Luhansk region stopped production shortly after Russia’s invasion of the country (GM March 4, 2022). At least two of its production units, including the ammonia unit, were subsequently damaged by Russian shelling and a subsequent fire in June (GM June 17, 2022).

Prior to the damage, Severodonetsk Azot had nameplate production capacity for 1.02 million mt/y of ammonia, 60,000 mt/y of aqueous ammonia, 390,000 mt/y of urea, and 550,000 mt/y of ammonium nitrate, according to Ostchem’s website.

Muriate of Potash

Brazil, California, Eastern Cornbelt, India, Market Watch, Pacific N.W., Potash Muriate, U.S. Gulf, Western Canada, Western Cornbelt

US Gulf:

NOLA barge prices continued to weaken, with the new range put at $360-$370/st FOB, down from the week-ago $370-$375/st FOB.

Eastern Cornbelt:

Potash was quoted at $430-$465/st FOB in the Eastern Cornbelt in early March, with the low reported on the Illinois River. The Cincinnati potash market remained at the $445-$465/st FOB level during the week.

Western Cornbelt:

Potash terminal pricing remained under pressure in the Cornbelt, with new offers reported at $420/st FOB St. Louis, down from last week’s $425-$430/st range. The upper end of the regional market remained at $465/st FOB out of inland warehouses.

California:

Potash pricing firmed to $615-$645/st FOB in California for new business, although the last actual potash sales were reportedly concluded at $585-$615/st FOB for earlier fill offers, depending on grade and location.

Pacific Northwest:

The last confirmed potash business in the Pacific Northwest was reported at $560-$570/st FOB and $552-$562/st rail-DEL for January fill. Post-fill pricing reportedly moved up $40/st, to $600-$610/st FOB, although these levels remain untested.

Western Canada:

The latest potash prices in Western Canada were unchanged at C$715-$735/mt FOB Saskatchewan mines for truck tons, depending on grade.

India:

Market talk suggested that a settlement for a new annual supply contract is imminent. IPL, the country’s biggest potash importer, has historically been the front-runner to agree to the new price.

January potash imports were counted at 114,000 mt, the DoF reported, off from the year-ago 340,000 mt.

Trade Data Monitor reported 2022 imports at 2.7 million mt, down 15% from 3.2 million mt in 2021. Canada, Israel, and Jordan provided about 80% of India’s imports for the year, combining for roughly 2.2 million mt. Belarus followed with 384,000 mt, for about 14% of the market. First-half 2022 imports were counted at 1.3 million mt, followed by 1.4 million mt in July-December.

December imports were 139,000 mt, off 29% from the prior-year 194,000 mt.

Brazil:

The potash market was quiet from port to inland distributor. Sources reported a steady $470-$490/mt CFR at the ports, and $600-$625/mt FOB ex-warehouse in Rondonopolis. Potash from sanctioned companies was reportedly offered at $450/mt CFR, pressuring prices from other suppliers.

Ma’aden, Saudi Ministry Ink Deal to Accelerate Phosphate 3 Project

Featured, News, Phosphate, Saudi Arabia

Saudi Arabian Mining Co. (Ma’aden), Riyadh, has signed a Support Agreement with the Kingdom’s Ministry of Investment that is aimed at accelerating the delivery of the company’s ambitious Phosphate 3 project, according to a March 1 media statement.

Ma’aden also has signed a Framework Agreement with the Kingdom’s Shareek Program, aimed at boosting the company’s growth potential across its asset base.

The Phosphate 3 project ultimately is targeting a production capacity of some 3 million mt/y of phosphate fertilizer, which, if fully realized, will take Ma’aden’s phosphate fertilizer production capability to a mega 9 million mt/y.

Ma’aden said the agreement with the investment ministry will focus on infrastructure required to enable the development of a project of this scale. However, the company provided few other details, except to say that the agreement would boost fertilizer production and support food security.

The first plant in the Phosphate 3 project, a 1.1 million mt/y capacity ammonia plant – the so-called “Ammonia-3” facility – located at Ras Al-Khair Industrial City facility on Saudi Arabia’s East Coast, started “official” commercial production last August (GM Nov. 4, 2022), although the first shipments from the new plant were made in June (GM June 10, 2022).

This January, Ma’aden signed an engineering, procurement, and construction management services contract with WorleyParsons Arabia Ltd. and JESA International SA for the construction of what it described as phase 1 of the project, which will produce 1.5 million mt/y of phosphate fertilizer (GM Jan. 13, p. 30).

Under the SAR1.043 billion (approximately $277.7 million at current exchange rates) contract, an integrated production complex will be built at Wa’ad Al Shamal in the north of Saudi Arabia and at Ras Al-Khair. The contract’s duration is 42 months.

Ma’aden said its Framework Agreement with the Shareek Program will support future growth initiatives across Saudi Arabia’s mining operations and will align with the company’s 2040 strategy to become “a global mining champion.” This in turn will deliver on the Kingdom’s Vision 2030 mandate to establish mining as the third pillar of the economy, it said, but provided few specific details.

The Shareek Program is a government-led initiative designed to enable the Saudi authorities’ collaboration with large companies in the private sector (listed and non-listed companies) to maximize their investment plans in the Kingdom, which will boost economic growth.

Singapore-based Nutrisource to Start Up NPK Plant in Togo

Africa, Asia, News, News Briefs, NPK

Singapore-based manufacturer and supplier of farm inputs Nutrisource Pte. Ltd. is set to inaugurate its first NPK blending plant in sub-Saharan Africa in Togo by the end of the first quarter of this year.

Construction of the blending unit at the Adétikopé Industrial Platform, located in the northern suburbs of the Togolese capital, Lomé, is already complete and equipment is being installed, according to a report by Food Business Africa, citing an unnamed official from Arise IPP, the operator that manages the Adétikopé platform.

NPK production is expected to start in May/June, and the plant is projected to reach a capacity of 200,000 mt/y, according to the official.

Nutrisource’s investment in the blending unit follows the successful launch of its distribution activities in Uganda and Kenya in 2020, and will help strengthen the supply of quality fertilizers for local farmers.

The company plans to set up three more NPK plants in sub-Saharan Africa, aiming to replicate the Togolese experience in three other sub-Saharan African regions, according to the report. The intention is for each region to be supplied from a satellite blending plant, as well as an import and distribution business, according to the report, citing Nutrisource Founder and CEO Murari M Rakshit.

Togo inaugurated the Adétikopé Industrial Platform in June 2021. The industrial zone was built on a 400-hectare site at a cost of some $230 million and is designed to house various raw material processing units in the coming years. The platform is part of the Togolese government’s commitment to the industrialization of the country’s economy.

Uralchem Restructures Voskresensk Mineral Fertilisers Holding

News, News Briefs, Phosphate, Russia

Russian fertilizer group Uralchem JSC reported that its phosphate fertilizer production subsidiary, Voskresensk Mineral Fertilisers JSC, has completed a reorganization process and was merged into Uralchem JSC as a branch effective from March 1, 2023.

The new branch assumed all property of the former subsidiary and is now called the VMF branch of Uralchem.

The company said the reorganization aims to increase Uralchem Group’s operating efficiency by reducing the number of intragroup transactions, considerably cut administrative and management expenses, and improve financial flow management.

Saudi Chemical Secures Gas for Proposed AN Plant

Ammonium Nitrate, News, News Briefs, Nitric Acid, Saudi Arabia

Saudi Chemical Holding Co. announced on Feb. 27 that its subsidiary Saudi Chemical Co. Ltd., in partnership with a local company, has received a gas allocation letter from the Kingdom’s Ministry of Energy for establishing a plant to produce nitric acid and ammonium nitrate (AN).

The facility will have capacity to produce 440,000 mt/y of nitric acid and 300,000 mt/y of AN, the company said in a filing to the Saudi stock exchange.

The plant will be the first of its kind in the region, and the output will provide raw materials for several downstream industries in the domestic market, including industries in the mining and exploration sector, construction and infrastructure, cement production, and also pharmaceutical industries, Saudi Chemical Co. said.

Saudi Chemical Co. did not name the local company in its filing. However, in January it signed a nonbinding Memorandum of Understanding (MOU) with Orica Mining Services (Portugal) “to establish cooperation to localize the production of AN and nitric acid” (GM Jan. 20, p. 27).

KBR Selected for Middle East Project

Ammonia, Houston, TX, Middle East, News, News Briefs

KBR announced on March 1 that its ammonia technology has been selected for a large-scale 1 million mt/y low-carbon ammonia facility in the Middle East GCC region. KBR will provide the technology license, basic engineering design, proprietary equipment, and catalyst for the low-carbon ammonia plant.

“We are honored that our leading low-carbon ammonia technology has been selected for this world-scale energy transition project,” said Doug Kelly, KBR President, Technology. “This project will be amongst the first large energy transition projects to come onstream in the world, and we are excited to be part of this journey with several global industry leaders.”

Essar Plans $3.6 B for UK, India Decarbonization Business

Hydrogen, India, News, News Briefs, United Kingdom

India’s Essar Group plans to spend as much as $3.6 billion on low-carbon hydrogen production in the UK and India, as well as decarbonization work at its refinery in northwest England, pending government support, according to Bloomberg.

The company’s first step would be a $1.2 billion investment in Britain to produce hydrogen from natural gas with carbon capture and storage, according to Prashant Ruia, Director of Essar Capital. A final investment decision is expected later this year.

The company’s Stanlow refinery is connected to the Hynet project, one of two industrial clusters selected by the government to get funding to capture CO2 emissions and transport them for permanent storage below the seabed. The UK aims to capture 20-30 million mt of carbon a year by the early 2030s.

Ruia said he expects the UK to finalize a market framework later this year, which would allow the company to make a firm commitment so that its first project can be operational by 2027.

The hydrogen produced by Essar would be used at Stanlow and also sold to other nearby industrial companies. Future investments would go to cutting emissions at the refinery, and a hub in India to produce hydrogen from renewable electricity. The gas would then be turned into ammonia for export to the UK and Europe.

CEO Expects $2.5 B Advance for Potássio do Brasil Project

Brazil, Canada, News, News Briefs, Potash

Potássio do Brasil, which is owned by Brazil Potash, a subsidiary of Canadian investment company Forbes & Manhattan, plans to advance $2.5 billion to its Autazes potash project in Amazonas state, according to Adriano Espeschit, CEO of Potássio do Brasil, in an interview with BNamericas.

The project would have a capacity of 2.2 million mt/y and meet some 20% of Brazil’s need for potash. Espeschit said the project already has its preliminary license and only needs its installation license, which the company believes it will receive this year. Thereafter, construction can begin.

The CEO added that the company signed a binding offtake agreement last year with Brazilian agricultural conglomerate Amaggi Exportação e Importação Ltda. (Amaggi), which agreed to buy 500,000 mt/y of the project’s production for at least 15 years (GM Oct. 30, 2022). He added that this deal aided in the search for financing.

Gensource Announces Strategic Business Relationship with Nekaneet First Nation

Canada, News, News Briefs, Potash, Saskatchewan

Junior miner Gensource Potash Corp., Saskatoon, on Feb. 23 announced a new business relationship with and direct strategic investment by Nekaneet First Nation. The relationship encompasses equity ownership in Gensource, and therefore a direct interest in the development of the Gensource potash projects in Saskatchewan. The relationship was formalized via Gensource’s recently closed private placement.

Gensource’s Tugaske potash project is located on Treaty 4, encompassing the lands of the Cree, Saulteaux, Dakota, Nakota, and Lakota and homeland to the Metis Nation, and lands included in the traditional territory of Nekaneet First Nation.

“Equity ownership in a strategic asset that will produce a commodity the world needs provides a direct connection and benefit to First Nations in Saskatchewan’s potash industry rather than the status-quo model of ancillary participation in resource projects,” said Alvin Francis, Chief of Nekaneet First Nation. “It creates real ownership, early in the development of the company where growth can potentially bring multi-generational prosperity to growing communities like Nekaneet First Nation.”