All posts by traceybg@gmail.com

GSLM gets 37,000 acres with high-value potash in lease exchange with Utah

News Briefs, Potash, Southwest

Great Salt Lake Minerals Corp.’s trade of existing undeveloped leases on the Great Salt Lake with the state of Utah for leases in highly saline regions is being viewed as a win-win for both sides, according to officials with parent company Compass Minerals. That is, except for a few unhappy environmentalists.

The exchange involves 37,000 acres of the lake considered preferable for production of sulfate of potash specialty fertilizer, giving GSLM the ability to meet growing potash demands in future years. The state gets approximately 30,000 acres with lower mineral concentrations, which GSLM has had under lease since 1967. But more importantly, Utah gets an area of existing wildlife habitat that could one day be cordoned off from future development and protected for continued use by birds and mammals. “The leases relinquished by the company around Promontory Point have higher value for wildlife,” explained Compass Minerals spokesman Dave Hyams. “The leases picked up by the company have a lower value for wildlife because of the higher salinity, which means they will be more productive for solar evaporation ponds. That’s why it’s a win-win situation.”

Friends of Great Salt Lake is not certain the trade, which is out for public comment, will keep the lake healthy in the long run. “The bitter pill is smaller than the more than 50,000 acres the company originally sought from the state,” Lynn de Freitas, director, told the local press. Site Manager Corey Milne reassured detractors that GSLM “will continue to respect the environment and the ecosystems of the lake as we expand to become an even greater contributor to the local economy and community, and to meet the vital needs of farmers.”

Compass Minerals at Overland Park, Kan., described the agreement as part of a multi-phase GSLM expansion announced in 2007 to meet future demand for sulfate of potash. The first phase is to increase the amount of sulfate of potash the company can produce utilizing its existing 43,000 acres of evaporation ponds at the Great Salt Lake by investing in infrastructure and efficiencies. The second phase of the long-range plan to add new solar evaporation ponds on 33,000 acres is undergoing a federal environmental impact study by the U.S. Army Corps of Engineers in Salt Lake City. The acreage acquired in the lease exchange is also subject to environmental review before any new ponds are built; it was unclear if the permit will be amended to include this addition.

Hyams told Green Markets he didn’t know at this point if the new acres would be included in the application currently under review. He did say there is the possibility that the two could be tied together, but these discussions haven’t taken place yet. Compass has said, however, that the final scope of these combined 70,000-acre projects – including the timing, cost, additional pond harvest, and need for additional processing capacity – will be determined when grower demand dictates. But the leased acreage is unlikely to yield increased SOP production for at least five years due to the time requirements of the permitting process, pond construction, and the three-year solar evaporation cycle. Jason Gibson, Army Corps’ chief of Utah development regulation, said that changing the application could mean having to start all over again. Gibson said the current EIS process, which began in November 2007, is expected to reach the draft stage in late spring or early summer.

Yara to expand rock production

News Briefs, Phosphate Rock

Oslo-Yara International ASA said Dec. 8 it will strengthen its phosphate rock base by investing in new capacity at its mine in Siilinjärvi in Finland. The EUR 60 million investment will increase capacity from 850,000 mt to 1 million mt/y. “The project strengthens the scale and competitiveness of our rock mining operations in Finland and increases sourcing flexibility for our NPK production, especially for the Norwegian plants. It is a good illustration of the value that the Kemira GrowHow acquisition has added to the Yara system,” says Hallgeir Storvik, Head of Strategy, Supply and Trade. The increase in capacity is achieved mainly through the de-bottlenecking of existing production equipment and infrastructure. The project will also upgrade infrastructure for transport and storage of rock for export out of Uusikaupunki. The project, which is also profitable under more challenging market conditions than seen recently, is expected to be completed during fourth quarter 2009.

FAA cited potash strike for deicer shortage

News Briefs, Northeast, Potash

Washington-The Federal Aviation Administration cited the strike at three PotashCorp mines in Saskatchewan as a reason for a shortage in airport deicer this winter. FAA said in an October 10 memo to airport executives that a leading maker of potassium acetate runway deicers, Cryotech Deicing Technology, Fort Madison, Iowa, said that the availability of its E36 (trade name) will be significantly limited for the 2008-09 winter season. The memo said the situation was a direct result of the lack of raw materials used in making the product, and cited a short supply of raw materials due to an ongoing mine strike in Canada. The strike has since been settled. However, in the memo FAA said that if the mine strike had ended Oct. 10 it would still take a few months to alleviate the situation. FAA reported that CDT said it produced 9 million gallons of E36 in 2007-08, but will only produce up to 3 million gallons this upcoming winter. FAA said it confirmed that all major North American potassium acetate makers are having similar difficulties, including CDT, Old World Industries Inc., Clariant Corp., Octagon Process Inc., and Jarchem Industries Inc. FFA advised that airports develop contingency plans to deal with winter conditions without the use of potassium-based deicers.

PhosCan production will not begin in 2012

Eastern Canada, News Briefs

Toronto-PhosCan Chemical Corp., citing the global financial crisis, says it will be prudent and disciplined with respect to how it advances the Martison Phosphate Project, north of Hearst, Ont., so as to find the right balance between advancing the project and preserving cash. As a result, PhosCan does not expect production to begin at Martison in 2012. The company will continue to provide project development updates and will announce a new schedule to achieve production once it has been established. PhosCan says it has opted to defer several tasks related to the development of the project, including construction of the balance of the permanent road to access the proposed mine site and detailed project engineering. Among major achievements in 2008, PhosCan says it did purchase a portion of the land required for the proposed MAP granulation plant in Brandon, Manitoba, and has completed preliminary site layout for the plant. In 2009, it hopes to buy the balance of the land required for the plant as well as achieve rezoning, among other goals. In other news, PhosCan has set a shareholders meeting for Feb. 11, 2009. On the agenda is a shareholders’ rights plan previously adopted by the board of directors. Shareholders will also be asked to approve a reduction in the stated capital of the company’s common shares in order to enable the company to undertake a normal course issuer bid. “We have seen unprecedented change in financial markets and the fertilizer industry in the last several months,” said Stephen Case, PhosCan president and CEO. “However, PhosCan is well positioned with over $70 million of uncommitted cash, and therefore we view this as an opportunity to review a broad range of options that have the potential to enhance shareholder value.”

Agrium debuts advanced tech production facility

Alberta, News Briefs

Calgary-Agrium Advanced Technologies (AAT), a unit of Agrium Inc., has opened a new fertilizer production facility in Courtright, Ont. The state-of-the-art manufacturing operation is producing the AAT specialized, controlled-release fertilizers, many of which involve the company’s patented coating technology. This plant opening coincides with the launch of AAT’s newest product, XCUT slow-release fertilizer, which is now available for sale in both the U.S. and Canada. On Sept. 30, 2008, the Canadian Food Inspection Agency (CFIA) approved XCU for sale in Canada “With production capabilities in the North and South, we can meet the increased customer demand and diversify our geography,” said Rod Oglesby, AAT director of operations. “Now we can better serve our customers across North America and globally with the assurance of product availability, and at a lower freight cost.” The new Courtright facility is a multi-million-dollar addition to an existing AAT operation, but it represents a complete transformation of the site’s manufacturing capabilities. As a result of the dramatic expansion, AAT now has a second location for making its new XCU, which is polymer-coated, sulfur-coated fertilizer. Its ultra-thin, highly-durable coating requires a sophisticated, proprietary manufacturing process. Until now, that capability had existed only at AAT’s production facilities in Sylacauga, Ala. “This is exciting because it’s new, innovative technology,” said Oglesby, “but it’s already been proven. We perfected the processes and quality-control assurances that we have in place in Sylacauga, and now we’re applying them at the Courtright facility.” The new operation, which also features improved laboratory, warehousing, and distribution capabilities, has an annual production capacity of 60,000 mt of slow- and controlled-release fertilizers. In addition to the XCU, the Courtright facility is able to manufacture AAT’s Polyon ® controlled-release fertilizer. “We’re in the value-added business,” said Oglesby, “and we’re investing in products to help our customers solve the economic and environmental situations they’re facing. And we’re not just talking about innovation, we’re going out and spending the money to get better products to the market quickly. This new facility is the latest example.” For more info, see AAT’s new website www.agriumat.com.

Scam costs ConAgra nearly $650k in fertilizer

News Briefs, Northern Plains

Fargo, N.D.-An ex-farm input sales manager faces a maximum of 10 years in prison and a $250,000 fine for an elaborate scheme, carried out over 10 years, in which he stole $642,818 in fertilizer while working at the former ConAgra facility in Moorhead, Minn., and sold it to two other places in North Dakota and Minnesota, according to federal prosecutors. The 70-year-old West Fargo resident, identified as Larry James Schrader, changed his plea to guilty Dec. 4 in federal court here to one of six felony counts; if convicted on all six felony counts, he could have faced up to 60 years, with fines of $1.5 million. Sentencing will be in early February. Assistant U.S. Attorney Jennifer Puhl told Green Markets that Schrader, described as a likeable family man, used his authority with ConAgra to have the fertilizer delivered by trucking companies to Ada Feed & Seed of Ada, Minn., and Larson Grain Co., located in LaMoure, N.D., and used phony documents to show it came from NC Marketing. Schrader would instruct ConAgra employees not to log the fertilizer he had them drain from ConAgra’s tanks on many occasions from 1996 until June 2005. On occasion, Puhl reported, he would have the “missing” fertilizer replaced by water, but it was not known whether any other customers got watered-down product. Puhl said the two dealers receiving the fertilizer were not charged because “there was not enough evidence to indicate otherwise.” Eventually, she reported, the employees got wise to the scam and reported Schrader to ConAgra security. She said the feds got involved because it was interstate transportation of stolen goods, and that the penalties would have been less severe had state lines not been crossed. ConAgra Foods Inc. spokeswoman Stephanie Childs said company security confronted Schrader in 2005, and he was fired. Earlier this year, ConAgra sold the Moorhead location as part of its trade group to Gavilon, owned by a group of investors led by Ospraie Management. Sources reiterated that this was an issue that occurred under ConAgra, not Gavilon.

Atacama downsizes, defers capital expenditures

News Briefs, Vancouver

Vancouver-Atacama Minerals Corp. reports that in light of the recent global financial crisis, it has decided to temporarily defer major capital expenditures for the development of a new specialty nitrate fertilizer plant. The plant, to be built in northern Chile, was estimated to cost $60 million, produce 70,000 mt/y, and take 27 months to build. Atacama said it will restart the project as soon as conditions allow. In addition, Atacama said economic conditions could also impact its drill program for potash exploration on the northeastern coast of Brazil. Groundwork, however, is underway in the form of geophysical and geological work for the selection and permitting of drill targets covering an area of approximately 1,700 square kilometers. For now, Atacama says it will focus on its iodine business, noting that the price of this commodity is so far unaffected by the financial crisis. Atacama said it is taking comprehensive cost-saving measures in an effort to reduce production and administrative costs, including the downsizing of non-essential personnel and staff. It also reports that Brian Kennedy, vice president, operations, has left to pursue other opportunities.

Minor sulfur fire at Wilbur Ellis in Pasco

News Briefs, Pacific N.W., Sulfur

Pasco, Wash.-Wilbur Ellis officials described a sulfur fire Dec. 9 at their facility here as minor, causing only minimal damage and sending home most of the employees until the next day. “We didn’t allow any people back in there until the building aired out completely over night,” Jerry Voss, Wilbur Ellis regulatory technician, told Green Markets. Voss reported the cause as sparks from the metal bucket of a front-end loader scraping against a concrete wall, which produced enough friction to spark the sulfur dust. He explained that dust abatement can’t be used with the sulfur 90, which in this case is a micronutrient for making organic fertilizer. There were reports of nearby businesses being evacuated, but Voss said wind kept the fumes to the north and he didn’t believe anyone was at risk. Still, the Pasco firefighters put on bunker gear along with respirators as a precaution. “When we first got here and found out what it was we knew it was a strong irritant, and so everybody that got on scene as soon as they got out of the apparatus they were putting on masks,” Fire Capt. Pat Henrickson told the local press. Voss said this material produces a blue flame, similar to the way propane gas burns, that is difficult to detect. “It’s not toxic, just irritating,” he described, “but anytime you have smoke off any product it’s not something you want to be inhaling.” He said the damage was limited to the surface part of the product and the bin.

Trimac acquires fertilizer hauling business

Alberta, News Briefs

Calgary-Trimac Income Fund said Dec. 5 that Trimac Transportation Services LP has completed the purchase of all of the issued and outstanding shares of Canamera Carriers Inc., a bulk trucking and warehousing company involved in the transportation and warehousing of fertilizer, agricultural products, and road salt in the Provinces of Saskatchewan, Alberta, and Manitoba. The purchase price for the business was $2.9 million, and includes a fleet of 19 company-owned tractors and 24 trailers, with annual revenues in its last completed fiscal year of approximately $7.9 million. The transaction also involved assumed net debt in the amount of approximately $1.3 million. Canamera is based out of Yorkton, Sask., and operates its trucking and warehousing business out of three leased properties. “We are excited to have Canamera Carriers become a part of the Trimac organization,” said Edward Malysa, Trimac chief operating officer. “The acquisition of Canamera Carriers fits well within Trimac’s diversification strategy by providing expanded services in the fertilizer and agricultural product business, and expands our footprint in the Saskatchewan marketplace.” The Fund is an unincorporated, open-ended limited purpose trust created for the purpose of acquiring and holding an indirect interest in Trimac. Trimac is Canada’s largest provider of bulk trucking services, with operations from coast to coast. In addition, through its wholly-owned subsidiary, Bulk Plus Logistics LP, Trimac provides third-party transportation logistics services in Canada and the U.S. Trust units of the Fund are traded on The Toronto Stock Exchange under the symbol TMA.UN.

Mosaic declares dividend

News Briefs, Northern Plains

Plymouth, Minn.-The Mosaic Co. said Dec. 11 that its board of directors declared a quarterly dividend of $0.05 per share on the company’s common stock. The dividend will be paid on Feb. 19, 2009, to stockholders of record as of the close of business on Feb. 5, 2009. The declaration and payment of any future dividends is subject to approval by Mosaic’s board. Mosaic said there can be no assurance that the board will declare future dividends.