Calgary—The Provincial Court of Alberta has fined Lilydale Inc. $180,000 after the company pled guilty to a 2009 ammonia release at its poultry processing plant that affected people living nearby. The release occurred Sept. 13, 2009, during annual preventive maintenance. There were only two employees on shift in the early evening, and they were evacuated. The release resulted in nearby residents being forced to leave their homes or shelter inside.
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Enviros not happy with Maryland nutrient limits
Annapolis—A coalition of 20 different environmental groups, including the Chesapeake Bay Foundation, want Maryland to impose tighter rules that would further limit local farmers’ use of animal manure and biosolids for fertilizer. The coalition claims the nutrient management regulations proposed by the Maryland Department of Agriculture (MDA) “fall short of what is possible and what is necessary.” Tighter regulations would include moving the wintertime ban on applying fertilizer to farm fields from 2016 to 2014. Further restrictions would keep fertilizer farther away from drainage ditches and streams in Chesapeake Bay, and tighter limits would be placed on storing phosphorus-based manure or sludge in farm fields. Spokesperson Julie Oberg responded that MDA already has met demands from environmentalist groups by revising existing nutrient management regulations. “We have spent two years developing revisions to nutrient management regulations, and we feel that the revised regulations will help strike a more even balance,” declared Oberg. Still, the coalition argues that agriculture is the largest source of Chesapeake Bay pollution, and that manure accounts for half of the runoff from Maryland farms. Farmers and local government groups are saying that the proposed rules are costly and unnecessary.
Spot Barge Prices
st/FOB U.S. Gulf
The Week in Fertilizer Stocks
The Week in Fertilizer Stocks
| Producer | Symbol | Price | Week Ago | Year Ago |
| Agrium | AGU | 94.91 | 95.16 | 91.04 |
| CF Industries | CF | 194.62 | 203.65 | 159.49 |
| CVR Partners | UAN | 23.93 | 25.03 | 24.55 |
| Intrepid Potash | IPI | 22.82 | 24.02 | 33.86 |
| Mosaic | MOS | 57.98 | 57.62 | 72.19 |
| PotashCorp | POT | 44.99 | 45.31 | 61.11 |
| Rentech Nitrogen | RNF | 28.76 | 29.58 | N/A |
| Terra Nitrogen | TNH | 216.63 | 227.95 | 147.54 |
| Distribution/Retail | ||||
| Andersons Inc. | ANDE | 36.36 | 38.04 | 42.89 |
| Deere & Co. | DE | 75.03 | 75.69 | 80.90 |
| Scotts | SMG | 38.71 | 39.17 | 51.00 |
IC Potash Corp. – Management Brief
IC Potash Corp., Toronto, has named Arthur Roth as director of marketing. Roth is an industry veteran with more than 50 years of experience in domestic and international marketing, transportation, and distribution of fertilizer products. He will directly report to Sidney Himmel, ICP president and CEO, and will be responsible for formulating marketing plans and distribution strategies, establishing and negotiating commercial relationships, and coordinating with ICP partners and fertilizer industry groups.
Roth has held senior executive posts at International Minerals & Chemical Corp. (now Mosaic Co.), AMAX Chemical Corp., and Helm Fertilizer Corp. Immediately prior to joining ICP, he served as CEO of A.J. Roth & Associates, an independent industry consulting firm that he founded in 1985. Roth is a graduate of Loyola University, where he earned both a Bachelor’s and a Master’s degree in Chemistry.
Earlier this month, IC Potash said it has assembled a team of consultants for its independent bankable feasibility study for the development of the company’s 100 percent-owned Ochoa Sulphate of Potash Project in Lea County, N.M. It is anticipated that the study will be completed by July of 2013. External consultants include SNC-Lavalin Inc., Agapito Associates, Feeco International, Hazen Research, NOVOPRO Projects Inc., Swenson Technology, and INTERA Inc. ICP has named Hanover Elite as the company’s investor and public relations counsel of record.
ICP intends to become a primary producer of Sulfate of Potash (SOP) and Sulfate of Potash Magnesia (SOPM), and says the site has a highly advanced mineral deposit containing proven and probable reserves of more than 340 million tons of ore within the proposed mine plan. On July 18, ICP announced that it has completed its two deep groundwater production wells, which will be used to supply water to the project.
Orica Ltd – Management Brief
Orica Ltd. has named Ron Douglas as global head of projects, effective October 2012, reporting directly to Ian Smith, managing director and CEO. His role will be to increase Orica’s ability to deliver large capital projects, as well as further develop project management capabilities, disciplines, and standards globally.
Orica said Douglas has over 25 years of operational performance and capital development experience in Australia, the U.K., the U.S., Southeast Asia, and Africa.
Sean Winstone has been named manufacturing executive, effective Oct. 1. He will be responsible for the manufacturing processes – ammonium nitrate, sodium cyanide, and chlorine plants. Orica says he has extensive knowledge of SH&E within the manufacturing area and has 23 years of operational experience within Orica.
In May, Molly Zhang was also named manufacturing executive for the manufacturing process of initiation systems. She has extensive experience in managing large-scale manufacturing operations, complex international supply chains, and major capital investments.
Winstone and Zhang will report to the global head of manufacturing.
John Beevers, global head of manufacturing, will leave Orica Oct. 1. Greg Witcombe, global head of Orica Chemicals, will leave Orica Dec. 24.
Richard Hoggard will succeed Beevers. He has been with Orica for 25 years and has held both global manufacturing and business roles. Most recently, as part of the current organizational restructure, he was appointed to the position of manufacturing executive and as a member of Orica’s executive committee. Hoggard will report directly to Smith.
A process is currently underway to identify Witcombe’s successor.
No buyer found for CVR
Sugar Land, Texas—CVR Energy Inc. said July 26 that the previously disclosed 60-day sale process to solicit acquisition proposals from third parties to acquire the stock and assets of CVR as an entirety ended July 23, 2012, without the receipt of a bona fide offer. CVR said its financial adviser, Jefferies & Co. Inc., contacted over 30 potential bidders, including independent refining companies and private equity firms, of which four signed confidentiality agreements. CVR received one indication of interest, which CVR and Jefferies did not believe to be credible. CVR did not incur any fees or expenses during the 60-day period in connection with the sales process. As announced at the time of its tender offer for CVR shares, Icahn Enterprises LP, the owner of approximately 82 percent of CVR, does not currently intend to seek to sell CVR. Icahn Enterprises intends to focus on operating CVR’s business for the benefit of its stockholders because it believes that continual shopping of CVR could be disruptive to its operations. Icahn has left Jack Lipinski, CVR chairman and CEO, in charge of the company and has kept him on the board of directors, though previous board members have been replaced. At the time he completed his tender offer for CVR shares, Icahn stated that in order to reach a peaceful conclusion he agreed with the company to engage an investment banker to seek to sell the company at a price higher than the tender price, although at the time he stated that he did not believe such an offer would be forthcoming. Icahn also stated that he is quite happy with the current performance of the company and believes fully in its future success. If a sale of CVR is executed prior to Aug. 18, 2013, those receiving $30 per share from Icahn would also receive contingent value rights for the amount over $30.
N.D. Commission awards grant to proposed N plant
Bismarck—The North Dakota Agricultural Products Utilization Commission (APUC) awarded funding requests totaling $348,165 at its quarterly meeting July 19, with $100,000 of that tentatively going to the proposed nitrogen plant in the Northern Plains. The Northern Corn Development Corp., Fargo, was awarded $100,000 to assist in acquiring accounting, marketing, and legal services. The company will use these resources to develop a business plan and acquire the necessary equity to launch a plant that will target gas currently being flared in the Bakken oil formation. However, the APUC noted that funding is pending depending on the completion of contingencies. Also pending contingencies was a $75,000 award to Progressive Nutrient Systems, Fargo, to defray the costs associated to demonstrate the technical feasibility of a distributed modular ammonia synthesis process, and the business plan/economic opportunity for a modular distributed ammonia based system. APUC is a program of the N.D. Department of Commerce that administers grant programs for researching and developing new and expanded uses for North Dakota agricultural products.
Agro-Culture to open facility in Stockton
Stockton—Agro-Culture Liquid Fertilizers is planning a warehouse, distribution, and eventually a manufacturing operation at the Fairchild Industrial Park in east San Joaquin County. “The new site in Stockton is a prime location as our sales growth expands on the West Coast,” said Troy Bancroft, Agro-Culture president and CEO. The total project is 13.4 acres. Phase one includes 14,000 square feet and will employ 3-4 people. Phase two, anticipated within five years, is 30,000 square feet. The company, based in St. Johns, Mich., makes and markets in-house formulated and branded liquid fertilizers and supplements, targeted to those employing sustainable agricultural practices in over 40 states, Canada, Mexico, and Belize. Mike Ammann, president and CEO of San Joaquin Partnership, said the county is a hub of agricultural activity and a natural choice for Agro-Culture. He said the gross value of agricultural production in the county for 2010 was nearly $2 billion, with more than $25 billion in the other adjoining counties. Ammann said the county remains number one in wine grape acreage in the state and is strong in fruit, nut crops and vegetables, adding that the San Joaquin Valley is larger than all other U.S. states in agriculture production.
Sherritt 2Q fertilizer sales up 30 percent
Toronto—Sherritt International Corp., citing higher prices, reported a 30 percent increase in fertilizer sales for the second quarter ending June 30, 2012, to C$43.7 million from the year-ago $33.6 million. Fertilizer sales volumes were up only 1 percent, to 71,294 mt from the year-ago 70,651 mt. Production saw a healthier increase, to 67,764 mt, up from 55,593 mt. Cost of sales were down 26 percent, to $18.1 million from $24.4 million. Company-wide, Sherritt reported an average natural gas cost of $1.93/mmBtu, down from the year-ago $3.76/mmBtu. Sulfur prices were up at $260.08/mt from $242.49/mt, while sulfuric acid prices were down at $183.19/mt from $196.68/mt. Six-month fertilizer sales were up 40 percent, to $58.7 million from the year-ago $41.8 million. Sales volumes were up 11 percent to 97,921 mt, up from 88,345 mt, while production was 133,885 mt, up from 115,166 mt. The company attributed the increased volumes to better field conditions, as the year-ago period saw a late spring due to heavy snowfall. Cost of sales were down 15 percent, to $27.6 million from $32.3 million. Company-wide gas costs were $2.05/mmBtu, down from $3.73/mmBtu. Sulfur and sulfuric acid prices were up at $267.42/mt and $190.42/mt, respectively, from the year-ago $221.14/mt and $185.98/mt. In the meantime, Sherritt’s Coal segment reported a 21 percent drop in second-quarter potash royalties, to $4.1 million from $5.2 million. Six-month royalties were off 32 percent, to $6.8 million from $10 million. Company-wide, Sherritt second-quarter net earnings were off, with the company citing lower nickel prices, lower export coal volumes, higher depreciation, and net finance expense. Earnings were $40.8 million ($0.14 per diluted share) on sales of $487.9 million, down from $60.1 million ($0.20 per share) on sales of $500.6 million. Six-month earnings were $73.1 million ($0.25 per share) on sales of $950.1 million, down from the year-ago $123.7 million ($0.42 per share) and sales of $975.1 million.