Saudi Arabia’s largest mining company, Ma’aden, will make its first international acquisition with the purchase of an African fertilizer distribution company. The publicly-listed Saudi Arabian Mining Co. will acquire an 85 percent stake in the Mauritius-based Meridian Group in an all cash deal that will provide one of the Middle East’s largest phosphate producers with 3,000 staff and a network of operations across southern Africa, from Malawi to Mozambique, Zimbabwe and Zambia.
Major buyers have concluded second-half Tampa sulfur contracts at $88/lt /CFR, down $21/lt from the first-quarter’s $109/lt CFR. Going into this week, sellers had been hoping for only a $15/lt drop, with buyers arguing for $25-$30/lt.
The Mosaic Co, Plymouth, Minn., on April 11 said Mosaic Fertilizantes will idle production at its Tapira and Catalão phosphate mines in Brazil in order to comply with new Brazilian regulations governing mine tailings dams. Mosaic said it currently has the rock and finished product inventory necessary to meet near-term market requirements and that during this period and as necessary, it will also ship phosphates from its operations in Florida and rock from its Peruvian mine for use in Brazilian production to meet customer needs in Brazil.
The MMTC urea tender that closed April 3 showed a low price to the West Coast at $251.40/mt CFR, about $40/mt lower than the previous tender. The estimated netback to the Arab Gulf is about $235/mt FOB, about $15/mt lower than producers’ expectations. Slightly more than 1 million tons were offered by 11 companies.
Incitec Pivot Ltd., after a review of its single super phosphate (SSP) operations, has decided to take an A$13 million charge and close its Portland, Victoria SSP plant in May, according to the Australia press. IPL will consolidate operations at its Geelong SSP plant.
Golden Gate Capital is exploring the sale of Mulberry-Fla.-based chemical company ArrMaz, according to Bloomberg, citing people with knowledge of the matter. The deal could fetch about $580 million based on similar valuations in the industry. ArrMaz’s chemicals are used to help process the breakdown of phosphate, as well as in fertilizers and highway asphalt. Gold Gate is working with Lazard Ltd. to seek buyers. Golden Gate and Lazard declined to comment.
Saudi Aramco is close to an agreement to buy a majority stake in Saudi Basic Industries Corp. (SABIC) from the kingdom’s sovereign wealth fund as the world’s biggest oil firm turns its attention to petrochemicals, according to Bloomberg, citing people familiar with the matter. An announcement on the proposed transaction, which could value the Public Investment Fund’s 70 percent stake at about $70 billion, may be announced in the coming days. However, no final decisions have been made and the timing and price of the deal could still change.
Due to continued strong demand for potash and solid agricultural fundamentals in offshore markets, Canpotex reports that it is fully committed on potash sales into June 2019.
The European Commission on March 20 found that there is enough evidence of dumping and injury to the European Union’s UAN industry to warrant registration of imports from Russia, Trinidad and Tobago and the United States. The EC also found that imports increased after the initiating of the investigation. The amount of possible future liability is estimated at 13-83 percent as a proportion of the CIF import value.
The Mosaic Co. said March 7 that it will reduce its phosphate production plans by 300,000 tons for the spring season. Mosaic said it has been monitoring U.S. markets and NOLA DAP prices, and has decided to reduce production due to continued weather concerns across key U.S. growing regions, along with higher than normal carryover inventory levels from the fall.
