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IFDC clarifies research center plans

The International Fertilizer Development Center (IFDC), Muscle Shoals, Ala., wants to set the record straight. Contrary to an article in The Times Daily, the local newspaper, there are no immediate plans for launching a fertilizer research effort that would develop more efficiency in nutrients and lower costs to farmers. “There is no R&D center presently in the works,” John Shields, interim marketing and development director, told Green Markets. He said the confusion was over an interview with Amitara Roy, president and CEO, in which Roy expressed his desire for the Shoals to become the core of research into finding affordable, environmentally friendly fertilizers.

Roy pointed out that IFDC works to help farmers in developing countries increase crop production and farm income, and that mission could be expanded to share the developments with farmers in the United States. He said more efficiency is needed in utilization of nitrogen and somewhat in phosphorus, also through development of fertilizers that would provide nutrients to the plants as they are needed and retain the remainder in the soil.

Shields conceded that IFDC should be getting back to some of its principle missions, which would include an expanded center in R&D. “There needs to be more public research and we have the wherewithal to do it,” he added. “But we need the money to do it.” He believes present efforts should be focused on generating more interest in this area.

The paper indicated that laboratory space could be leased for research from The Tennessee Valley Authority at the agency’s idled chemical engineering building next door to IFDC headquarters. Roy was quoted as saying it would cost $5 million to purchase equipment and refurbish the lab, with it costing $15-$20 million per year for five to six years to pay for the research. In addition, it quoted Roy as saying a new generation of fertilizers could be developed in as little as five years.

In June, IFDC announced several initiatives for developing and promoting better fertilizer use, including integrated soil fertility management to improve the profitability for smallholder farmers in Sub-Saharan Africa. Dr. Henk Breman, an IFDC expert in environment and agronomy based in Rwanda, said the technology promotes both organic and inorganic sources of plant nutrients, including mineral fertilizers, crop residues, phosphate rock, and lime. IFDC also is promoting deep placement, or the insertion of large briquettes of urea fertilizer into the root zone of transplanted rice, as a technology to decrease fertilizer use. Roy said this method improved net returns significantly and reduced urea use by 50 percent, and has implications for other areas.

Forest Service reviews judge’s decision on roadless rule

The U.S. Forest Service is reviewing U.S. District Judge Clarence Brimmer’s Aug. 12 rejection of a seven-year ban on building and logging on nearly 60 million acres of undeveloped national forests as environmentalists appealed the controversial court ruling. Brimmer ordered a permanent injunction against the federal government’s roadless rule in response to a lawsuit filed by Wyoming, saying the rule was enacted in violation of the National Environmental Policy Act and the Wilderness Act.

“The Forest Service, in an attempt to bolster an outgoing President’s environmental legacy, rammed through an environmental agenda that itself violates the country’s well-established environmental laws,” he stated. “This court is of the opinion that the Forest Service violated the public interest when it flagrantly and cavalierly railroaded this country’s present environmental laws in an attempt to build an outgoing president’s enduring fame.”

Conservation groups that intervened in support of the Forest Service were the Biodiversity Conservation Alliance, Defenders of Wildlife, Earthjustice, National Audubon Society, Natural Resources Defense Council, Pacific Rivers Council, Sierra Club, Wilderness Society, and the Wyoming Outdoor Council. They filed an appeal to Brimmer’s ruling in the U.S. 10th Circuit Court of Appeals in Denver, asking the appellate court to prohibit development in roadless areas while the case proceeds.

The Forest Service adopted the roadless rule in January 2001 in the final days of the Clinton administration. It prohibits logging, mining, and other development on 58.5 million acres in 38 states and Puerto Rico. Roadless areas make up nearly one-third of Forest Service lands and 2 percent of the nation’s land mass. The Clinton-era restrictions were beset by legal challenges almost immediately upon their implementation.

Brimmer’s latest order echoes a similar ruling he made five years ago in response to a lawsuit filed by Wyoming four months after the rule took effect. His 2003 ruling was rendered moot when the Bush administration decided not to appeal and instead issued its own rules for roadless areas, which required governors to petition the federal government to protect roadless areas in their states.

Conservation groups and attorneys general from Oregon, Washington, California, and New Mexico later challenged the Bush policy. In 2006, U.S. District Judge Elizabeth Laporte of San Francisco set aside the Bush rule and reinstated the Clinton rule, which prompted Wyoming to renew its complaint in federal court.

Mike Anderson, an attorney with The Wilderness Society, said he believed the California decision is still in effect despite Brimmer’s ruling. Wyoming Attorney General Bruce Salzburg said the injunction was appropriate because roads might be needed in national forests to fight fires and insect infestations.

Users of public lands in Colorado and Idaho could soon be subject to new rules for the roadless areas of those states, which have pursued their own rules under the federal Administrative Procedure Act, a broad law that allows states to petition the U.S. Department of Agriculture, which oversees the Forest Service, to make changes to rules for federal lands.

The U.S. Forest Service is working on a draft plan for managing Idaho’s roadless lands, which was started by former Gov. Dirk Kempthorne, written by former Gov. Jim Risch, and backed by Gov. Butch Otter. Risch, now lieutenant governor, said he expects his state’s rules for its 9.3 million acres of roadless areas to take effect this year. Jonathan Oppenheimer, a forest specialist for the Idaho Conservation League, said if Brimmer’s decision holds, Idaho could have the only roadless protection plan in the nation.

Last month in Colorado, the Forest Service published proposed rules for that state’s four million acres of roadless areas, written in conjunction with the state government.

ICL 2Q income up 445 percent

Tel Aviv-Israel Chemicals Ltd. (ICL) reported another record quarter, with net income to shareholders of $703.2 million on sales of $2.1 billion for the second quarter ending June 30, 2008, up from the year-ago $129 million and $963 million, respectively. The increases came primarily from ICL Fertilizers, which benefited from the continued rise in demand and prices of potash and phosphate fertilizers. ICL Fertilizers reported second-quarter operating income of $731.4 million on sales of $1.35 billion, up from the year-ago $114.2 million and $481.4 million, respectively. Six-month fert segment income was $1.14 billion on sales of $2.3 billion, up from the year-ago $185.5 million and $933.5 million, respectively. ICL-wide, six-month net income was $1.05 billion on sales of $3.61 billion, up from the year-ago $220 million and $1.85 billion. ICL has announced its highest ever quarterly dividend ?Çô $300 million, which will be paid Sept. 23, 2008.

Fertilizer boosts Cargill results

Minneapolis-Cargill Inc. reported earnings from continuing operations of $744 million in the 2008 fourth quarter ended May 31, up 18 percent from $628 million in the same period a year ago. A $310 million gain on the sale of discontinued operations brought fourth-quarter net earnings to $1.05 billion. For the full fiscal year, Cargill earned $3.64 billion from continuing operations, a 55 percent increase from $2.34 billion a year ago. The $310 million gain noted above brought fiscal 2008 net earnings to $3.95 billion. Revenues for the full year rose 36 percent, to $120.4 billion. Cash flow from operations increased 77 percent, to $7 billion. “Cargill posted a record financial performance in a year of exceptionally strong commodity demand, market turbulence and price risk,” said Greg Page, Cargill chairman and CEO. “By bringing to bear our business diversity, the full capacity of our global assets, strong risk management and a significant increase in capital deployed, we operated successfully in the most volatile agricultural and energy markets in decades. Despite tight stocks of many agricultural commodities, we maintained reliable supply chains for our customers and created value-adding solutions.” Page said Cargill’s investment in the fertilizer industry also contributed significantly to company results. Since 2006, global demand for crop nutrients has surged in response to the world’s increased need for higher crop yields to meet rising demand for food and agricultural commodities. Cargill is the majority stakeholder in The Mosaic Co. Page said the world has the means to give agriculture the chance to catch up with demand. “If markets are allowed to work, today’s prices can spark a supply response from farmers. A rekindling of public and private investment in agriculture and in rural infrastructure will drive productivity gains.”

Oklahoma pays farmers to use chicken litter

Oklahoma City-Agriculture interests say that critics are missing the point when they claim that incentives being paid to farmers for transporting chicken litter out of critical watersheds is just spreading water quality problems to other parts of the state. At issue is an Oklahoma Conservation Commission program that pays farmers up to $8 per ton to transport litter for use as fertilizer out of poultry-growing areas and a similar Environmental Quality Incentive Program (EQUIP) sponsored by the USDA Natural Resources Conservation Service, which pays for any kind of animal waste. Effective Aug. 1, the commission has $370,000 from EPA to continue the incentives for hauling the waste out of the Illinois River and Spavinaw Creek watersheds for all interested participants who get their payment requests approved through their local conservation district office. “Our program is intended to develop a market for poultry outside the poultry growing areas,” Dan Butler, director of water quality programs for the commission, told Green Markets. And to date, Butler noted, the state has succeeded, because the skyrocketing prices of commercial fertilizer has created so much interest that now there’s not enough litter to meet all the demands. “At first farmers were not eager to try it,” he added, “but now they absolutely love it.” Eldon Merklin, coordinator of the program, said inquiries about the chicken waste this year are coming from as far away as Lawton in southwest Oklahoma. But that’s not calming the concerns of Oklahomans who worry that that waste from northeastern Oklahoma could pollute their groundwater and drinking water. One unconfirmed report in Lawton City claimed that 40 to 60 tons of chicken litter were dumped on a ranch near a creek feeding Lake Lawtonka, the city’s main water source. But Butler described the incident as “not a big issue and something that was not done intentionally by the farmer.” He said the litter had been left temporarily about 75 yards from a tributary that drains into another stream that ties into the water supply. “He was putting it there until he had a chance to use it, and when advised built a berm around the pile to prevent runoff,” Butler explained. “None of us wants to see the litter run into a reservoir and none of it did.” J.D. Strong, chief of staff for the state secretary of the environment, said trucking waste out of northeast Oklahoma is a good solution – as long as the people who use it as fertilizer are aware of environmental regulations on where waste can be used and how much can be spread on land. “The expanding scope of the program and the fact that they’re able to move this stuff greater distances can only be beneficial in the long run,” Strong said.

Chemtrade reports explosion at Beaumont facility

Toronto-Chemtrade Logistics Income Fund reports that at approximately 1:20 a.m. Aug. 21, an explosion occurred in the furnace at its plant in Beaumont, Texas, causing injuries to two employees. There were no off-site environmental releases. The fire department responded to the scene, and the plant is now secure. “Our first concern is for the well being of our employees,” said Mark Davis, Chemtrade president and CEO. “Both employees have been taken to the hospital, where they are receiving medical attention. We will ensure that these employees and their families receive any support we can provide. No other employees were injured, and the plant remains safely shut down.” The Beaumont plant had been shut down for maintenance; the incident occurred when the plant was being brought back online. The maintenance, involving the replacement of a heat exchanger, is not thought to be the cause of the furnace explosion, which occurred during start-up. The cause of the incident is not yet known, and the plant will remain down until it is determined that it can be safely restarted. Chemtrade is assembling an appropriate investigation team to examine the details of this incident. At this point the extent of downtime that will be required is unknown, and more information will be provided as it becomes available. The facility employs 50 and produces sulfuric acid, according to The Beaumont Enterprise.

Pacific Ridge acquires more B.C. phos property

Vancouver-Pacific Ridge Exploration Ltd. reports that it has acquired the Wapiti Property, located south of Tumbler Ridge in east central British Columbia. The company said the property is centrally located within its extensive phosphate holdings, which cover over 500 square kilometers. The company describes the Wapiti property as 15 claims totaling over 68 square kilometers and covering an approximately 18 kilometer-long strike length of prospective phosphate-bearing sedimentary rocks ranging in thickness of up to three meters. Pacific Ridge will pay Lateegra Gold Corp. $5,000 and issue 200,000 shares in the capital of Pacific Ridge to Lateegra. Pacific Ridge will then have the option to make exploration expenditures totaling $1 million over the ensuring 36 months to earn a 51 percent stake in the property. Upon earning 51 percent, Pacific Ridge may form a 51-49 percent joint venture with Lateegra, or opt to increase the ratio to 65-35 percent under certain conditions. Pacific Ridge says its phosphate exploration program is underway, and work on Wapiti will be included in its plan.

Widespread eyes phosphate off NZ coast

Golden Bay, New Zealand-Consortium partners Widespread Portfolios and Widespread Energy report that they are receiving strong interest in the license application progress of its Chatham Rise phosphate rock prospect from international mining companies and local fertilizer giants. The consortium applied in August 2007 for a prospecting permit over a 3,048 kilometer area 600 kilometers east of Christchurch, which includes significant seabed deposits of rock phosphate and other potentially valuable minerals. “We have now been approached by the major New Zealand fertilizer companies as well as two huge international mining groups,” says Chris Castle, managing director. “All appear to be very keen to be involved in investing in the project or buying what is extracted.” Approval for the prospecting permit has been delayed while the government develops proposed legislation for regulating environmental effects of activities in New Zealand’s Exclusive Economic Zone (EEZ). Drafting of the legislation is now under way, and the Minister’s intention is to introduce a Bill into the House before the end of August. Fletcher Challenge Corp. and other companies explored the area first in the 1980s. Rapidly-increasing phosphate prices and advances in underwater mining technology means exploration for submarine mineral deposits is now much more feasible. Widespread says the phosphate resource may exceed 100 million mt (with a current market value of more than NZ$46 billion) and could prove to be an economically viable source of fertilizer depending on extraction costs. Widespread plans a two-year work program that, if successful, will be followed by more detailed exploration and evaluation. This will include feasibility studies updating the work already undertaken 25 years ago reflecting today’s new technology and different costs. The advances in technology include global positioning systems (GPS) that now make it possible to precisely mine the seabed with automated equipment. Widespread noted that its license application has been surrounded by a subsequent application of 71,750 sq km by Auckland company Chatham Phosphate Ltd. At present, all phosphate rock used in New Zealand comes from Morocco.

Bonaparte issued more phos licenses in Namibia

West Perth, Australia-Bonaparte Diamond Mines NL reports that it has been issued four new exclusive prospecting licenses (ECL) for marine phosphate exploration off the coast of Namibia. The new EPLs cover a collective area of 4,000 km and have been issued for three years, through July 2011. These EPLs are held by Bonaparte Tungeni Joint Venture, which currently holds the 1,000 km EPL3323 license in the company’s Moeb Project, south of Walvis Bay. Two of the new EPLs are in the Meob area, and two are farther north at the Rocky Point Project. Namibian partners Tungeni Investments cc, hold a 30 percent stake in the joint venture, while Bonaparte holds 70 percent and is the project operator. The jv also has pending applications for five more EPLs covering an additional 5,000 km.

Minemakers reports high grade phos results

West Perth, Australia-Minemakers Ltd. reports that drilling and assaying programs have illustrated a high grade of phosphate rock at both the Main Zone and Arruwurra Prospect in Wonarah, Northern Territory, Australia. “These are great results and illustrate why we have been extending the drilling program to the limits of the currently agreed areas at both the Main Zone and Arruwurra,” said Andrew Drummond, Minemakers managing director. “Based purely on assay considerations, with persistent hits at 20 percent P205 or better over an area now totaling over 25 square kilometers, the immediate planning challenge is where to begin the mining for the best economic return for shareholders. The potential to produce direct shipping ore is very exciting.” Minemakers is currently looking at a 2010-11 timeline for production to begin at the Wonarah project. As a result, it has been lobbying NT authorities to expand the Darwin Port and East End Arm to handle additional future export volume. Minemakers says NT has agreed to invest $100 million over the next three years to upgrade and expand the port and work with the federal government for further expansion.