Plymouth, Minn.-The Mosaic Co. President and CEO James Prokopanko told analysts at the recent UBS Global Agricultural and Chemicals and Seed/Biotech Conference that Mosaic expects its tolling agreement dispute with PotashCorp over tonnage from the Esterhazy, Sask., potash mine (GM Aug. 17, 2009, July 27, 2009) to be heard by a court by the end of the year. Prokopanko said that it boils down to PotashCorp saying they have two more years left in their claims on tonnage from the mine, which would be approximately 2.5 million mt. Mosaic argues the contract ends Aug. 30, 2010, while PotashCorp says it runs into 2012. And despite lower potash prices, Prokopanko told analysts there’s a heck of a fine margin in potash. “We’re seeing gross margins in that 45 percent kind of range for a basic material. I don’t know that there are many other minerals or processed chemicals/commodity chemicals where you’re getting a 45 percent gross margin. So there’s a good dollar in it, both for us and our competitors.”

Salt Lake City-Dyno Nobel has decided to cease nitric acid production at its facility in Maitland, Ont., but will continue to produce urea ammonium nitrate, according to a statement released from the company’s Salt Lake City offices. “A review of operations at Dyno Nobel’s facility at Maitland which began some 12 months ago has led to a decision to cease nitric acid production,” the statement disclosed. “Production of acid will be shut down on or about July 15, when the ammonia stored on site is consumed. Since the middle of last year, there has been the orderly closure of two nitric acid plants and two ammonium nitrate plants.” Site Manager Daryl Baker said earlier that acid production would be transferred to Dyno Nobel facilities in Missouri and Pennsylvania. “There will be no immediate impact on site staffing levels because the Maitland site will continue to produce urea ammonium nitrate and will operate all ancillary equipment,” he said. The review of operations at Maitland began in May 2009 with the closure of the nearby Invista plant, which at one point consumed some 40 percent of the plant’s nitric acid production, and because of the general softening in customer demand. Baker added, “The acid plant will be mothballed as has been done with the other plants previously shut down. Mothballing protects against corrosion and prepares the plants for a potential restart, which is dependent on the recovery in customer demand.” Dyno Nobel America acquired Maitland nitrogen assets from Nitrochem Corp. in December 2005, including three nitric acid plants and two ammonium nitrate plants. Dyno Nobel is a leading supplier of industrial explosives and blasting services to the mining, quarrying, seismic, and construction industries, employing more than 3,300 people and operating 36 manufacturing facilities in Australia, Canada, the U.S., and Mexico.

Inver Grove Heights, Minn.-CHS Inc. and Farmers Elevator Co. of Lowder, headquartered in Waverly, Ill., have signed a letter of understanding to explore a formal business partnership. If approved, the two companies would join forces to enhance agronomy and grain services to producers within the Illinois trade territory currently served. A proposed business agreement would be voted upon by Farmers Elevator’s 135 stockholders in June and put in place shortly thereafter. “A partnership with CHS would be a great opportunity to expand market access for our customers’ grain,” said Greg Dolbeare, general manager for Lowder. “It would also bring a new level of efficiency our customers would experience almost immediately.” “The combination is a strategic move for both companies,” said John McEnroe, CHS senior vice president, “and aligns with our core commitment to return value to member-owners.” Since 1905, Farmers Elevator Co. of Lowder (www.lowderelevator.com) has provided Illinois farmers and landowners with grain services and agricultural products and services. Today it operates locations in Waverly and Auburn, delivering grain storage and drying and grain marketing. It also sells fertilizer, seed, and crop protection products, and provides custom application services for these products.

Ottawa-The Public Prosecution Service of Canada has confirmed that a reputed “Toronto 18” ringleader, on trial for a plot to unleash fertilizer bombs against several Canadian targets, has unexpectedly changed his plea to guilty. “I can confirm that Fahim Ahmad changed his plea to guilty last week,” Nathalie Houle with the PPSC advised Green Markets. The spokesperson said that no formal announcement was issued. Ahmad, 25, is the ninth person to be convicted in the terror plot. Charges were dropped against seven others. Sentencing is scheduled for June 15. He was arrested during a police sting operation in 2006 and charged with participating in a terrorist group and instructing others to carry out terrorist activities. He faces a maximum of life in prison. According to press reports, the plea came halfway through his trial. The trial of two co-defendants, the last to be prosecuted in the case, is expected to continue. In a conspiracy regarded as aimed at provoking Canada to withdraw from Afghanistan, the Toronto 18 are believed to have planned to bomb the Toronto Stock Exchange, Canada’s spy agency offices, a military base, Ontario’s power grid, and a nuclear station, using fertilizer explosives packed in rented trucks. Members of the group were supposed to have purchased three tons of ammonium nitrate, but were foiled by undercover officers, who were providing a substitute inert material. Fahim, along with Steven Chand and Asad Ansari, who still face trial, were among 14 adults and four youths charged June 2, 2006, as belonging to a cell plotting the terror attack.

Oslo-A dividend of NOK 4.50 (US$0.73) per share was approved at Yara International ASA’s annual general meeting on May 11. The dividend will be paid out May 26, 2010, to shareholders as of May 11, 2010. The board of directors was also given the authorization to acquire up to 5 percent of Yara’s shares within the next 12 months. Øivind Lund was re-elected board chairman, and Bernt Reitan, Elisabeth Harstad, and Leiv Nergaard were re-elected as board members. Hilde Merete Aasheim was elected as a new board member.

Washington-U.S. Sens. John Kerry (D-Mass.) and Joe Lieberman (I-Conn.) on May 12 introduced the American Power Act, a new energy and climate bill that includes provisions for increasing nuclear power and offshore drilling, but also retains a cap-and-trade system for reducing carbon pollution by factories and electric utilities. The bill would require electric power utilities to obtain pollution permits starting in 2013. The permits could be traded on a regulated market, and would initially be provided free by the government before transitioning to a full auction system by 2030. The bill encourages offshore drilling, but would allow U.S. states to prohibit offshore oil activity within 75 miles of their coasts. The legislation drew a mixed response from industry and agricultural interests. “The climate change legislation introduced today by Sens. Kerry and Lieberman provides government incentives that will encourage a wide range of utilities to switch to natural gas as an alternative for generating energy, as well as incentives for natural gas vehicles,” said Ford West, president of The Fertilizer Institute (TFI). “This will undoubtedly increase the demand for and price of natural gas, which there is no substitute for in the manufacturing process of nitrogen fertilizers.” TFI said the domestic fertilizer industry is highly dependent on a reliable and reasonably priced supply of natural gas, noting that as much as 90 percent of the cost of producing nitrogen fertilizers can be directly attributed to the price of natural gas. “Despite the bill authors’ stated intent to offset natural gas rate increases for industrial users, its design fails to protect the fertilizer industry from the threat of fuel switching since our natural gas feedstock purchases are not made through a local distribution company,” West said. “Congress must keep in mind that fertilizer is a crucial food security resource that is responsible for 40 to 60 percent of the world’s food supply. Essential industries, such as fertilizer, will be severely challenged by climate policy that does not address our unique sensitivity to the price and availability of natural gas. It is vital that Congress develop climate change legislation that will preserve the fertilizer industry and many other U.S. manufacturing sectors’ ability to remain viable in a very competitive global market.” The National Corn Growers Association (NCGA) also released a statement, saying it was reserving judgment until it and EPA had fully analyzed the bill. NCGA noted, however, that it could not support the earlier Waxman/Markey bill in the U.S. House, which also contained cap-and-trade language, “due to the potential adverse economic impacts on corn growers.”

Deerfield, Ill.-Terra Industries Inc. reported net income of $54.9 million ($.47 per diluted share) on sales of $408.9 million for the first quarter ending March 31, 2010, up from the year-ago $37.9 million ($.30 per diluted share) on sales of $419.7 million. Net income attributable to common shareholders was $46.7 million, down from $30 million. “Terra achieved this improved net income despite lower nitrogen selling prices, due to lower feedstock costs and significantly improved sales volumes, including an increase in sales to industrial customers as the overall economy continued to recover,” said Anthony Nocchiero, CF Industries Holdings Inc. senior vice president and CFO, on an analyst call. Overall, sales volumes were up 27 percent during the quarter, compared to 1Q 09, but prices were down 22 percent. UAN and ammonium nitrate both saw huge volume increases. UAN volumes were 837,000 st on average selling prices of $184/st, compared to the year-ago 625,000/st and $282/st. AN volumes were 296,000 st and $193/st, versus the year-ago 168,000 st and $267/st. Urea volumes were 82,000 st and $325/st, versus the year-ago 77,000 st and $322/st, while ammonia volumes were down slightly, to 374,000 st and $314/st from 381,000 st and $336/st. First-quarter natural gas prices dropped to $5.39/mmBtu from the year-ago $7.37/mmBtu.