Toronto-Marsulex Inc., which is reviewing its strategic options, including a possible sale (GM March 29, p. 14), reported a 153 percent increase in net earnings and 27 percent increase in EBITDA for the first quarter ending March 31, 2010. First-quarter net earnings were C$3.8 million with EBITDA of $14.6 million, versus the year-ago C$1.5 million with EBITDA of $11.5 million. Sales were off 8.5 percent, to $62.7 million from $68.5 million. “All business units reported improvements in quarterly EBITDA from a year earlier,” said Laurie Tugman, Marsulex president and CEO. “Having said this, it should be noted that our 2009 and latest quarterly results underscore that the nature of our business gives us limited exposure to the impacts of the downturn.” Western Markets EBITDA increased 20.7 percent, to $6.6 million, on improved volumes from sulfur-based products. Tugman said the company continues with its strategic review and is unable to say how long the process will take and whether it will result in any transaction. The company is conducting business as usual and is proceeding with $7 million in additional capital projects within the Industrial Services Group.
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Freeport to resume building sulfur plant
Phoenix-Freeport-McMoRan will resume construction of a modern sulfur burning plant at its Safford operations to produce sulfuric acid for copper recovery, according to Freeport officials, who say environmental permits are in place for the facility to be built at an estimated cost of approximately $150 million. Freeport spokesman Richard Peterson said work, which was deferred in December 2008 because of economic conditions, will resume in the second quarter and will take approximately one year to complete. Peterson said the plant is to be highly automated, with state-of-the-art environmental controls and a standard proven facility design; because of this, it will have a minimal impact on employment at the Safford operations. There will, however, be about 250 construction employees on the project at its peak. He said the plant, with a capacity of approximately 465,000 short tons of sulfuric acid per year, is designed for the needs of copper processing and there will be no surplus acid available for other purposes. The plant will burn elemental sulfur that will be brought by railcar to a transfer facility to be built southeast of Fort Thomas. Sulfur will be transferred from the railcars to trucks for transportation to the sulfur burning plant. Waste heat from the sulfur burner will be used to produce approximately 15 megawatts of electric power, ten megawatts more than required to operate the acid plant itself, with the balance used to support some of the demand from the other Safford operations.
Sherritt fertilizer results off in 1Q
Toronto-Sherritt International Corp. reported that due to the timing of spring season sales, fertilizer sales volumes for the first quarter ending March 31, 2010, dropped to 26,694 mt from the year-ago 31,651 mt. Fertilizer revenues were C$8.5 million, down from the year-ago $12.1 million. Fertilizer operating costs were C$8.3 million, down from 1Q 09’s C$12.3 million. The company reported potash royalties of $3.3 million versus the year-ago $4.3 million. First-quarter sulfur and sulfuric acid costs were US$114/mt and US$129.60/mt, versus the year-ago US$153.61/mt and US$184.94/mt, respectively. Company-wide, Sherritt reported net income of C$59.7 million ($.20 per diluted share) on sales of $393.3 million, versus the year-ago loss of $42.9 million ($.15 per diluted share) on sales of $349.6 million.
Ohio protests not stopping ammonia tank
Columbus-The Ohio Department of Agriculture has given the go-ahead for installation of a 12,000-gallon anhydrous ammonia tank at a farm in Medina County, which has drawn objections from township officials who are concerned about safety. “The situation is that Mr. Simmons (Dr. F. Bruce Simmons III, proprietor of South Spring Farms) has filed all the paperwork, completed the application and was determined to be in compliance with our regulations, and at this point he does have approval to construct the system,” Matt Beal, agriculture inspection administrator, told Green Markets. Still, Sharon Township trustees, who have registered their opposition with state agriculture officials, want to make sure measures are in place in case of any problems. The township has no say-so in the application process, Trustee Brian Guccion was quoted as saying in the press. “It’s all up to the Department of Agriculture,” Guccion complained. “Our stand on it is we’re not in favor, but the question is what can we do,” said Township Assistant Fire Chief Michael Stanec, who wants to be sure his department will be able to access the facility in the event of an emergency. But Dave Gorman, department staff counsel, said “from an administration law standpoint they don’t have an avenue for this. They can submit concerns to us, but they don’t have standing to block the permission to install.” Gorman offered that the township could go to court to get “some sort of injunction.” Beal described the Simmons tank as on the smaller size of ammonia installations. “Actually there are 18,000-gallon all the way up to 30,000-gallon, and it’s not unusual to have several 30,000-gallon.” Sharon trustees acknowledged that they had been informed about the Department of Agriculture approving the installation, but emphasized they are still concerned about the location of the tank. “We feel it is truly in a densely populated area (including) a housing development that should not be an appropriate location for this type of chemical,” Trustee Kimberly Bolas Miller told Green Markets. “From what we are told by the Ohio Department of Agriculture, we do not have any input to this decision. In fact, the law does not require for the local entity to even be notified of a tank being installed, which truly concerns us.”
Yara AA production resumes at Tertre
Olso-Yara International ASA says that anhydrous ammonia production at its Tertre, Belgium, facility should start up again in May. The plant suffered major damage in a June 2009 explosion (GM July 6, 2009). Ammonia plant capacity is 420,000 mt/y.
Koch introduces new nitrogen in U.K.
Marlborough, U.K.-Koch Fertilizer Trading Sàrl and Agrotain International are offering KαN, a new nitrogen fertilizer they say improves farmers’ productivity, cost effectiveness, and environmental stewardship. KαN is the tradename for Koch Fertiliser’s advanced nitrogen. “We believe KαN will result in significant agronomic benefits for our farming customers,” said John Ridd, business leader for Koch Fertiliser Ltd. “Powering KαN is the unique technology of AGROTAIN®, which essentially squeezes every kilo of productivity out of nitrogen. The effectiveness of AGROTAIN is thoroughly demonstrated by U.K. research such as the Defra project NT26. KαN prevents volatilization losses from urea to ensure that the farmer’s nitrogen investment is available for the crop and not lost to the atmosphere.” Ridd continued, “In addition to the performance benefits, this exciting product provides U.K. growers with a choice in nitrogen fertilizers. Innovation and choice is part of Koch Fertiliser’s continued commitment to the future of British agriculture.” “Koch Fertiliser’s products are ideal for bringing the AGROTAIN technology to the U.K. market,” said Agrotain’s Brian Wade. “Most nitrogen products suffer losses like denitrification (nitrous oxide losses) or volatilization (ammonia losses). The performance and consistency of AGROTAIN in preventing volatilization and increasing the productivity of urea – the most widely used nitrogen in the world – have been well demonstrated by multiple U.K. research institutes.” Information about KαN is available now in preparation for the 2010/2011 growing season.
USDA releases major report on ag transportation
Washington-The USDA on April 27 released a comprehensive report to the U.S. Congress on agricultural transportation in the U.S. The report, Study of Rural Transportation Issues, was mandated by the 2008 Farm Bill and covers the four major modes of transportation commonly used by U.S. agriculture – truck, rail, barge, and ocean vessel. “Agriculture is the largest user of freight transportation in the United States, with 31 percent of all ton-miles recorded in 2007 being used in the movement of agricultural products,” said USDA Secretary Tom Vilsack. “This report provides policy makers the vital information needed to make strategic infrastructure and policy decisions to meet rural America’s transportation needs, now and in the future.” The report examines some of the major issues facing agricultural transportation, including the effect of deregulation on the rail industry; the growing gap in funding for the inland waterways and highway systems; availability of containers and ocean vessel capacity; and the infrastructure updates that may be needed to support a projected increase in biofuels transportation. The report also discusses U.S. transportation policy, in which each mode of transportation is often considered separately without an overarching view of the flow of freight through all the modes. “We need a strong transportation infrastructure for our vast quantities of farm exports to be competitive in world markets,” said Transportation Secretary Ray LaHood. “That is why we devoted more than half of the total funding of our TIGER program (Transportation Investment Generating Economic Recovery) to improvements that benefit freight transportation, ports and rural communities. This report is timely, coming as we work to carry out President Obama’s National Export Initiative of doubling of U.S. exports within five years.” The report is available on the Agricultural Marketing Service website at www.ams.usda.gov/RuralTransportationStudy.
Outlook Resources, Tropicana ink pact
Toronto-Outlook Resources Inc., producer of organic fertilizer from food waste and other renewable sources, has signed a letter of intent with Tropicana Manufacturing Co., a division of PepsiCo, that could lead to establishing production facilities to supply low-carbon fertilizers to Florida orange growers. The letter of intent is seen as an outgrowth of Outlook’s participation in an evaluation to identify a fertilizer for orange growers that makes a smaller contribution to global warming. Any production in the orange-production area likely would make use of wastes from harvesting and processing. Results of this exercise, which also involved Yara International ASA (GM March 22, p. 13), have not been disclosed as yet. But an Outlook Resources announcement states that the letter of intent outlines the intentions of both companies to establish such a facility and is part of Outlook’s strategy of working with the intentions of leading food and beverage companies to create a business relationship that would develop and operate production facilities to supply low-carbon fertilizers to orange growers in the state of Florida. “Outlook is bringing to market an innovative product with an innovative business model,” said Errol Farr, Outlook president and CEO. “This is possible only in tandem with forward-looking companies like Tropicana who share our vision for increasing the sustainability of agricultural practices.”
Agrium inadvertently releases financial info
Calgary-Agrium Inc. said April 29 that it inadvertently released some preliminary Wholesale first-quarter financial information due to an issue with its information technology system. The information included Wholesale first-quarter net sales of $790 million, gross profit of $218 million, and EBITDA of $174 million. Agrium said the released information is incomplete and that some of it was prepared for internal purposes only, including allocations and charge-outs, which are not in accordance with generally accepted accounting principles and accordingly should not be relied upon. Agrium will release full financial first-quarter results May 5, 2010.
New regs readied for Virginia fertilizer tanks
Chesapeake, Va.-Virginia expects to have statewide regulations in force before the end of the year for large above-ground liquid fertilizer storage tanks in the aftermath of the two-million-gallon spill in November 2008 (GM Nov. 17, 2008) that inundated a nearby neighborhood and injured several individuals. Emory Rogers, deputy director of fire regulations in the Department of Housing and Community Development, told Green Markets the process that began last year with public hearings is in the final stages and will be approved by the department’s code committee by July 26 to be effective in the fall of this year. That’s particularly good news for the Chesapeake and Norfolk areas, where there are already about a dozen of the structures because of the nearness to seaports. Chesapeake city officials pressed for the new rules to gain more authority to inspect tanks in the same way they inspect petroleum tanks. “The changes would bring into the regulations API and industry standards that would be used for construction and then for ongoing maintenance of the tanks,” according to Rogers. “There would have to be secondary containment capable of holding 110 percent of the capacity of the tank, having a berm in place, and then compliance is referenced for converting existing tanks from one content to another.”