The Mosaic Co. has confirmed that its Colonsay potash mine in Saskatchewan will return to production by mid-January. The mine was idled in July 2016 and the approximate 330 employees were given layoff notices. The employees returned to work in December.

The Colonsay mine’s proven production capacity is put at 2.6 million mt/y.

The Chinese government dropped all export duties on nitrogen and phosphate fertilizers, effective Jan. 1, 2017. The move was long expected by the international trading community.

Exported urea last year faced a duty of RMB80/mt (US$11.50/mt) while DAP and MAP had an RMB100/mt (US$14.37/mt). A 5 percent duty imposed on TSP and SSP exports in 2016 was also dropped.

Tariffs on NPK fertilizer is being dropped from 30 percent to 20 percent of the portside price. The duty on potash exports remains at RMB600/mt (US$86.20). Potassium nitrate duty also remains at the 2016 level of 5 percent.

The removal of the urea duty was seen by industry sources as an effort by the Chinese government to make sure Chinese urea remains competitive against other global players, especially Iran. At the same time, however, the reduced output by Chinese urea producers – just under 50 percent of rated capacity – has tightened the urea market enough to prop up prices. One trader questioned the logic behind making more Chinese product available for the global market at a time when domestic demand is up and production is down.

K+S Group reports that the Hattorf site of the Werra plant started up again Jan. 2 and as of Jan. 3 resumed full production.

Repairs at the fire-damaged site were completed in December and the company was also granted deep-well injection approval.

K+S says all sites of the Werra plant are now producing to their full extent.

CF Industries Holdings Inc. on Dec. 28 announced that the new ammonia and urea plants at the company’s Port Neal, Iowa, Nitrogen Complex have been successfully commissioned and started-up, marking the completion of the company’s capacity expansion projects.

CF said the ammonia plant, which began production in late November, has operated at approximately its nameplate capacity of 2,425 st/d. It said the back end of the plant (ammonia synthesis) was recently taken offline to replace a gasket and is expected to resume production shortly. The front end of the ammonia plant continues to operate and produce carbon dioxide that is used to feed the new urea plant. The urea plant, which was commissioned earlier this month, has produced on specification granular urea. The urea plant was also recently taken offline to replace a relief valve and is expected to resume production shortly as well.

“CF’s capacity expansion projects are complete,” said Tony Will, CF president and CEO. “With projected returns significantly above our cost of capital, we have built the foundation for CF’s growth and greatly increased our cash generation capability.”

Total annual gross ammonia capacity at Port Neal is now 1.2 million st, up from 380,000 st previously. Output from the new ammonia capacity will largely be upgraded to urea. Total annual urea capacity at Port Neal is now 1.4 million st, up from 50,000 st previously. Total annual UAN capacity remains largely unchanged at 800,000 st.

Potash Corp. of Saskatchewan Inc. has decided to defer a planned six-week shutdown of the Lanigan Mine in Saskatchewan in order to manage inventories. The company said the Lanigan downtime will now probably happen as part of the annual maintenance shutdown in the summer or at some other time.

The company said that the planned 12-week shutdown at the Allan Mine beginning in February will proceed as planned (GM Nov. 23, p. 1). PotashCorp is also cutting 140 jobs at the Cory Mine.

The Tampa anhydrous ammonia price has moved up $25/mt to $250/mt CFR for January business from December’s $225/mt. Citing higher international prices, Tampa watchers had expected an uptick of at least $10-$25/mt.

Agrium Inc. plans to increase potash prices across all price zones by $20/st, effective Dec. 22. Mosaic had earlier reported that it planned to implement a $20/st increase no later than Dec. 16.

Some 114 workers at the Potash Corp. of Saskatchewan Inc.’s Allan Mine in Saskatchewan are safe after a mine fire Dec. 19, according to Canadian press reports. While an equipment fire was soon extinguished, due to the heavy smoke, workers went to refuge stations and were later evacuated when all was clear. The mine was expected to reopen Dec. 20.

K+S Group has acquired a 30 percent stake in fertilizer manufacturer Al-Biariq for Fertilizer Plant Co. Ltd (Al-Biariq) in Saudi Arabia for a high single-digit million figure (U.S. dollars). A contract to this effect was signed today by both companies in Dubai. Through this purchase, K+S is seeking to participate in the growth in the Middle East, Africa and South Asia, particularly in the fertigation segment.

“In line with our management agenda, we are further strengthening the specialty business in the Potash and Magnesium Products business unit through this investment and can offer an even broader product portfolio in the future,” said Norbert Steiner, chairman of the board of executive directors of K+S Aktiengesellschaft and board member responsible for this business unit.

Al-Biariq is a manufacturer of fully soluble potassium sulfate, which is used for the liquid fertilization of fruit and vegetables, amongst other applications. Al Biariq’s production facilities on the Red Sea have an annual capacity of 20,000 mt (SOP water-soluble), which is set to double to 40,000 mt in the near future.

As part of the agreement, K+S will in future take over the distribution and marketing of the fertilizers produced by Al-Biariq. In addition, K+S has acquired an option to purchase a further 30 percent in Al-Biariq within two years of completing the transaction (closing), which is scheduled for the second quarter of 2017.

K+S produces potassium sulfate fertilizers (including KALISOP®) from natural deposits at the Werra site in Hesse. The company said the synthetically manufactured potassium sulfate (SOP water-soluble) by Al-Biariq in Saudi Arabia provides a welcome addition to the K+S product range with a fully soluble potassium sulfate, which is primarily used in fertigation.

With the announcement of the acquisition of fertilizer activities in China (Magpower) in July, the investment in Al-Biariq in Saudi Arabia marks another step towards expanding and strengthening the K+S specialty fertilizer business this year.

Mosaic Co. agreed to buy Vale SA’s fertilizer unit for $2.5 billion in cash and stock to become the largest fertilizer producer in Brazil.

Half the price will be paid in cash and the other half in new shares, giving Vale an 11 percent stake in Mosaic and two seats on its board. The transaction is expected to close late next year, pending regulatory approvals, Plymouth, Minnesota-based Mosaic said Monday in a statement.

While Mosaic already operates a port terminal in Brazil, its mines are in the U.S. and Canada. Vale’s fertilizer business includes a phosphate mine in Peru and a potash mine in Brazil. The acquisition will give it assets including five Brazilian phosphate-rock mines and four chemical and fertilizer production plants, plus a 40 percent stake in a Peruvian phosphate mine.

“This acquisition provides Mosaic a tremendous opportunity to capitalize on the fast-growing Brazilian agricultural market and from improving business conditions,” Chief Executive Officer Joc O’Rourke said in the statement. “We see this as an ideal strategic fit for Mosaic.”

Vale can also earn as much as $260 million in cash in the two years after the completion of the Mosaic deal if certain financial metrics are met, according to the companies. Vale share were little changed at 24.35 reais at 10:22 a.m. in Sao Paulo, according to Bloomberg.

Mosaic expects the acquisition will boost earnings by 5 to 10 cents a share in 2018 and generate about $80 million of after-tax cost savings, according to presentation slides posed on its website. It will finance the deal by issuing $1.25 billion of debt next year.

The Vale assets have the capacity to produce 4.8 million mt/y of finished phosphate crop nutrients and 500,000 mt of potash. Mosaic will get Vale’s 40 percent interest in the Miski Mayo phosphate mine in Peru and its Kronau potash project in Saskatchewan, Canada, and the option to include a potash project in Argentina.

The acquisition excludes Vale’s Cubatao-based nitrogen and non-integrated phosphate business.