Cairo-Orascom Construction Industries (OCI) sold over 1 million mt of nitrogen-based fertilizers during the fourth quarter ending Dec. 31, 2010, and approximately 3.7 million mt for the year. OCI said its investment in Gavilon performed very well and that it recorded an investment income of US$14.1 million in the quarter and $43.4 million for the year. During the quarter, ammonia, urea, and calcium ammonium nitrate (CAN) netbacks were up 22.5 percent, 20.8 percent, and 34.6 percent, respectively. Ammonia volumes were strategically held back in September/October in anticipation of price increases, and as a result ammonia sales volumes increased 23.9 percent over the previous quarter. OCI expects fertilizer prices to remain healthy in 2011, citing more domestic demand in Russia and Ukraine and higher coal prices in China, which will raise the floor price on globally traded urea. OCI said the expansion of its CAN line in The Netherlands is on track, with 300,000 mt of additional capacity expected to be completed during 2012. Despite the recent unrest in Egypt, OCI said its fertilizer plants continued to produce at normal rates, and the construction side of the business only lost six days of activity. OCI said the construction of its new nitrogen venture in Algeria, Sorfert, is on track and 96 percent complete at the end of January. Commercial production is expected to begin in fourth quarter 2011. OCI downplayed concerns about the severity of the unrest in Algeria and its impact on the new plant. OCI-wide, fourth-quarter net income was $186 million on sales of $1.32 billion, up from the year-ago $105.6 million on sales of $977.8 million. Full-year net income was $594.2 million on sales of $4.9 billion, up from the prior year’s $434.1 million on sales of $3.83 billion.
Spring thaw, precipitation cause flooding
Indianapolis-The combination of melting snow and heavy rains continued to cause flooding in parts of the Midwest and Northeast regions last week. Extensive flooding was reported at midweek in Indiana along sections of the White, Big Blue, East Fork White, Muscatatuck, and Wabash Rivers, with at least five counties in southern Indiana under flood warnings. A flood watch was also posted for numerous northern Ohio counties, and flood warnings were issued for portions of the Ohio River after midweek rainfall totals of nearly 2 inches in the Louisville, Ky., area. Ohio residents were still cleaning up after the previous week’s flooding on the Cuyahoga River and along other rivers and streams in the state. More winter weather also moved into the Northeast region, blanketing northern New England with wet, heavy snow. The system produced heavy rainfall in parts of southern Maine, New Hampshire, Connecticut, New York, New Jersey, and Massachusetts, prompting midweek flood warnings in more than 36 counties. Widespread flooding was reported along the Passaic River in New Jersey last week. Another round of showers was expected as the week advanced, resulting in flood watches being posted for parts of Pennsylvania, New Jersey, Delaware, and Maryland on March 10-11. According to its latest outlook released on March 3, the National Weather Service said much of Iowa also faces an elevated risk of spring flooding, with the highest risk along portions of the Des Moines, Cedar, Iowa, Winnebago, and Shell Rock Rivers. For the Mississippi River north of St. Louis, the updated forecast gives a 90 percent chance of spring crests 4-5 feet above local flood stages. In North Dakota, which is experiencing its third consecutive winter with above-normal snowfall, the updated outlook states that the flooding risk this spring is “well above average” for many locations on the James, Knife, Cannonball, Little Missouri, and Little Muddy Rivers, as well as along numerous creeks and tributaries. The outlook said there is a 35 percent chance that floodwaters this spring will exceed the 2009 record crest of nearly 41 feet in Fargo, N.D., and a 70 percent chance the Red River in Fargo will surpass last year’s crest of 37 feet. The weather service said record levels of flooding are also predicted for several areas in South Dakota as well, including a 50 percent chance of record flooding along parts of the Big Sioux River.
Ag, chem. groups criticize fed. budget proposal
Tampa-Representatives from the National Association of Wheat Growers, the National Corn Growers Association, the American Soybean Association, and the National Sorghum Producers on March 5 issued a joint statement on President Obama’s federal deficit and debt reduction plan. “We recognize that reducing federal deficits and the national debt is critical to putting the American economy, including U.S. agriculture, on a sound course for future growth and prosperity,” the statement said. “We note that agriculture made a down payment in cutting spending when the Department of Agriculture directed $4 billion in savings under the Standard Reinsurance Agreement for federal crop insurance toward deficit reduction. We believe any further reduction in discretionary spending should recognize and reflect this contribution. We would also note that agriculture-related programs represent less than one-half of one percent of the federal budget.” The groups stressed that any meaningful approach to deficit and debt reduction in the FY2012 budget “must encompass all entitlement programs and all discretionary spending.” The groups issued the statement as some 4,800 growers and other agriculture representatives gathered in Tampa March 3-5 for the 2011 Commodity Classic. In February, the American Chemistry Council (ACC) also weighed in on the president’s proposed federal budget, saying it “would strike a major blow to America’s chemistry industry, making it harder for us to compete internationally, create jobs, and continue supplying energy-saving products to the U.S. economy.” ACC President and CEO Cal Dooley said the proposal is a significant tax increase on U.S. companies already burdened by a corporate tax system that favors foreign competitors. “It could erode the chemistry industry’s job base, currently nearly 800,000 strong,” Dooley said. “Further, it could risk jobs in chemistry’s ‘customer’ industries, if they move abroad to be closer to raw materials or have to pay more to transport them into the U.S.” ACC took the president’s budget to task on several counts, from the reinstatement of Superfund taxes to the “double taxation” of U.S. companies and other levies, which ACC claims could total billions of dollars. “This budget will thwart the administration’s stated goals of strengthening manufacturing and doubling U.S. exports in five years,” Dooley said. “It will harm energy security, too, by discarding tax benefits available to oil and gas companies, leading to higher energy costs for chemical makers and other consumers. Congress should take a pass on these damaging provisions and enact a budget that advances job creation and U.S. competitiveness.”
Publication details consumption drop in 2008-09
Washington–Commercial Fertilizers 2009, a publication that includes U.S. fertilizer consumption data submitted by state fertilizer control offices, is now available from The Fertilizer Institute (TFI). It is a cooperative project of the Association of American Plant Food Control Officials (AAPFCO) and TFI. For more information, call TFI at 202-962-0490. The following is a summary of data included in the report:
| Fertilizer Year (000 material tons) | |||
| 2007-2008 | 2008-2009 | % Change | |
| Gross Tons | 55,282.8 | 47,273.7 | -14.5 |
| Fertilizer Year (000 nutrient tons) | |||
| Nitrogen | 12,590.9 | 11,433.7 | -9.2 |
| Phosphate | 4,246.4 | 3,192.2 | -24.8 |
| Potash | 4,664.2 | 3,089.8 | -33.8 |
| Total | 21,501.5 | 17,715.7 | -17.6 |
| * FY = fertilizer year June-July |
$52,000 fine for ammonia release affecting 152
Theodore, Ala.-The Department of Labor’s Occupational Safety and Health Administration (OSHA) is proposing Millard Refrigerated Services Inc. of Theodore pay penalties totaling $52,500 for 16 alleged safety and health violations resulting from an anhydrous ammonia release last August that sent 152 workers from several companies to the hospital for ammonia vapor exposure (GM Aug. 30, 2010). Thirty-one were admitted and four were placed in intensive care. According to OSHA, Millard Refrigerated Services is being cited with seven serious safety violations and one serious health violation, with $45,500 in proposed penalties. Four of the safety violations related to the incident include failure to consider hazard analysis from previous incidents; ensure an emergency shutdown would be executed in a timely and safe manner; train workers in process safety management of highly hazardous chemicals; and investigate the contributing factors to an incident that could have resulted in a catastrophic event. The company became aware of the leak in a 12-inch pipe on the roof when a crane operator was overcome by vapors and fell down while evacuating his crane cab on board a ship that was being loaded by Millard.
Mosaic to boost MicroEssentials production
Plymouth, Minn.-The Mosaic Co. recently announced its investment in a capacity expansion to 2.49 million st for MicroEssentials®, one of Mosaic’s premium crop nutrition products. Mosaic says the investment will better align future MicroEssentials supply to demand. Featuring a patented manufacturing process that ensures uniform nutrient distribution, MicroEssentials provides the essential nutrients crops need in just one granule. All projects to expand capacity – a number of conversions and process improvements – are scheduled for completion during the second half of Mosaic’s 2012 fiscal year.
Mosaic donates to NZ earthquake relief
Plymouth, Minn.-The Mosaic Co. said March 1 that it is contributing U.S.$75,000 for earthquake relief efforts in New Zealand. “As a global company, with customers and friends in Christchurch, our employees everywhere share a great concern for those affected by this disaster,” said Jim Prokopanko, Mosaic’s president and CEO. “We are partnering with the New Zealand Red Cross to make an immediate impact on the relief effort and to contribute to the long-term rebuilding of Christchurch.”
Marifil expands K properties, eyes sulfur
Vancouver-Marifil Mines Ltd. reports that it has staked two additional claims totaling 17,456 hectares on its K-3 potash project, and four additional claims totaling 30,000 hectares on its K-4 potash project, both in Mendoza Province, Argentina. The K-3 project now covers 64,606 hectares and the K-4 project now covers 56,083 hectares, both in the northern portion of the Neuquen Sedimentary Basin. The Neuquen Basin is Argentina’s most prolific oil producing basin, and also hosts the country’s only producing potash mine Potassio Rio Colorado, owned by RTZ. The K-3 and K-4 properties have been acquired on the basis of regional geologic studies to determine which parts of the basin are prospective for potash. In addition, Marifil geologists identified a significant, previously unrecognized sulfur prospect located largely in the K-4 claim block. “Marifil is now the largest potash play in Argentina aside from the assets of Vale’s Rio Potasio deposit, and has now covered all of the prospective ground in the northern half of the Neuquen Sedimentary Basin,” said John Hite, Marifil president. “We are highly encouraged by the discovery of a second biogenic sulfur prospect. Last year sulfur prices hit a low of $30 per ton, but now prices are approaching $200 per ton. We expect to begin an aggressive exploration program, including drilling on both the Codihue and S-2 prospects in the coming months.”
Legend touts phosphate reserve estimate
Melbourne-Legend International Holdings Inc. says its maiden mineral reserve estimate for its 100 percent owned Paradise South phosphate project has proven and probable reserves of phosphate rock that will support 59.8 years of operation for the 600,000 mt DAP and MAP per annum production scenario, or 29.9 years at a doubled rate of production. “As-mined” proven and probable ore reserves of phosphorite are 196.1 million mt at 14.6 percent P2O5. Proven and probable mineral reserves of recoverable, commercially useable and internationally marketable phosphate rock concentrate are 55.5 million mt at 33 percent P2O5 (72 BPL). Legend says Paradise South is one of seven phos rock deposits controlled by the company, and is the first to have a current mineral reserve estimate reported.
Air Products to pay penalty over NH3 release
Sparrows Point, Md.-The U.S. Environmental Protection Agency (EPA) has announced that Air Products and Chemicals, Inc., Allentown, Penn., agreed to settle alleged violations of toxic chemical reporting requirements at its Sparrows Point, Md., plant. The company will pay a $62,130 penalty and discontinue the use of chlorine in its cooling process at the Maryland plant. According to the EPA consent agreement, releases of ammonia in November 2007 and November 2008 were not immediately reported to all designated emergency response officials as required by the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA) and the Emergency Planning and Community Right-to-Know Act (EPCRA). The federal regulations require immediate reporting of ammonia releases when they exceed 100 pounds. On Nov. 3, 2007, at about 3 a.m., an estimated 4,000 pounds of ammonia were released. On Nov. 20, 2008, at about 4 p.m., an estimated 2,589 pounds of ammonia were released. In addition to the civil penalty, Air Products has agreed to substitute aqueous sodium hypochlorite in place of chlorine in its cooling system, a supplementary environmental project valued at $39,472. In the settlement, the company did not admit liability for the alleged violations.