Tallahassee-Florida’s Second District Court of Appeals on May 3 directed the Florida Department of Environmental Protection (FDEP) to consider new evidence concerning Mosaic’s permit to mine the first phase of its Ona project. The court said FDEP should consider evidence presented in the FDEP’s and Southwest Florida Water Management District’s Peace River Cumulative Impact Study, which was issued earlier this year. The study determined strip mining in the headwaters of the Peace River had already affected water supplies. Phase One of the 20,000 acre Ona Mine would include more than 4,000 acres in the Horse Creek watershed, which flows into the Peace River. Mosaic spokesman David Townsend said the company regretted the delay but was confident the prior review addressed all relevant issues, and that the FDEP would ultimately approve the permit. FDEP was given 45 days to complete the review, Townsend said.
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Mosaic touts Esterhazy expansion
Plymouth, Minn.-The Mosaic Co. said May 9 that it has completed the test run for the expansion of its Esterhazy, Saskatchewan, potash mines. A third-party audit confirmed the expansion adds an incremental 1.1 million mt of new annual capacity, bringing Esterhazy’s total annual capacity to approximately 5.3 million mt. The expansion was completed in late 2006 at a capital cost of approximately $35 million. Pursuant to an existing tolling arrangement, up to a quarter of incremental capacity will be supplied to a third party who participated in the funding of the project’s capital cost. “This successful expansion, both in terms of the cost and additional capacity, underscores our strong commitment to cost-effectively grow our Potash business,” said Jim Prokopanko, President and Chief Executive Officer of Mosaic. “With the Esterhazy expansion completed and now efficiently operating, we are pursuing several other capacity expansion projects at our potash mines that will help us further grow our business to meet projected increases in global demand for potash products.” Mosaic’s additional potash projects include adding 120,000 and 360,000 mt of annual incremental capacity by 2010 and 2012, respectively, at its Belle Plaine, Saskatchewan, operations. Additionally, Mosaic plans to add approximately 200,000 mt of incremental capacity at its Colonsay, Saskatchewan, mine by 2010. Other projects are also under consideration. Mosaic is one of the world’s leading potash producers, with approximately 13 percent of global potash capacity. Mosaic’s Esterhazy mine is the largest potash mine in the world.
Vancouver port fire hits calcium nitrate facility
Vancouver, Wash.-San Antonio-based NuStar Energy LP (formerly Valero LP) says it has been able to resume full operations since early this month, when a two-alarm fire heavily damaged a fertilizer warehouse at Port of Vancouver containing more than 5,200 tons of calcium nitrate. “We have actually been operating at 100 percent since the fire at our Vancouver terminal,” NuStar spokesman Greg Matula told Green Markets. “It has had no impact on our deliveries.” Matula said the facility that was damaged by the fire is expected to be rebuilt within the next few months, but NuStar has been able to utilize alternate storage buildings to maintain normal level of operations. He said the amount of calcium nitrate that was damaged is still under review. Capt. Rick Steele with the Vancouver Fire Department was quoted in the press as saying the main area that was burning was a conveyer system at the top of the building just under the ceiling. “There never was any explosive potential,” Steele said. “If any product (calcium nitrate) burned, it was the part in the conveyer belt.” He said calcium nitrate can make a fire burn hotter and more erratically, but it did not pose a threat of explosion. NuStar didn’t confirm it, but reports were that of the 5,200 mt, 4,700 mt was to be shipped to Alberta, Canada, and the remainder was to be sent to agricultural areas in the northwest United States. No other fertilizer-related operations at the port were believed to have been affected.
Deere closes on Lesco acquisition
Moline, Ill.-Deere & Co. closed its acquisition of Lesco Inc. on May 7 after Lesco shareholders approved the deal May 3 (GM May 7, p. 10). A definitive merger agreement had been announced in February. Deere said the deal roughly doubles the number of store locations for John Deere Landscapes with the addition of Lesco’s 345 stores and 114 Stores-on-Wheels, strengthening its presence across the U.S., especially in the eastern seaboard states.
Chemical results surge at LSB
Oklahoma City-LSB Industries Inc. reported a huge increase in its Chemical sector operating income, which includes El Dorado Nitrogen Co., during the first quarter ending March 31, 2007. Chemical operating income was $7.7 million on sales of $73.7 million compared to the year-ago $1.8 million and $62.5 million, respectively. LSB also reported improved results for its Climate Control segment. LSB-wide, net income was $10.8 million ($.28 per diluted share) on sales of $147.4 million, versus the year-ago $3.0 million ($.14 per share) and $111.6 million, respectively.
Martin Midstream sulfur results off, fertilizer up
Kilgore, Texas-Martin Midstream Partners LP (MMLP) reported an operating loss in its sulfur business, though fertilizer results were on the uptick for the first quarter ending March 31, 2007. Sulfur reported a first-quarter operating loss of $262,000 on sales of $15.4 million, versus the year-ago profit of $1.15 million and sales of $15.8 million. The decrease was attributed to a 50 percent increase in sales volumes and a 31 percent decrease in sales price. MMLP said its selling price per ton decreased due to the U.S. domestic market price decreasing $19.50 per ton versus the year-ago period. Fertilizer operating profit was $1.8 million on sales of $14.5 million, versus the year-ago $176,000 and $12.1 million, respectively. Fertilizer sales volumes increased 22 percent due to increased demand. “Overall, we are very pleased with our first quarter results,” said Ruben Martin, Martin Midstream GP LLC, the general partner of MMLP. “While the performance of our Sulfur segment has been disappointing, our Natural Gas Services, Marine Transportation and Fertilizer segments continue to outperform. The strength and diversity of these business lines has minimized the impact of our Sulfur segment.” Company-wide, MMLP reported net income of $5.8 million ($.42 per lp unit) on revenues of $155.8 million, versus the year-ago $4.3 million ($.33 per lp) and $146.8 million, respectively. In other news, MMLP on May 2 closed on an acquisition of the outstanding stock of Woodlawn Pipeline Co. Inc., a natural gas gathering and processing company with assets in East Texas. It also closed on an acquisition of a pipeline that delivers residue gas from the Woodlawn processing plant to the Texas Eastern Transmission pipeline system.
One-time charges lower Scott net income
Marysville, Ohio-Net earnings at ScottsMiracle-Gro were off 12 percent in the second quarter ending March 31, 2007, to $83.4 million ($1.23 per diluted share) on sales of $993.3 million, compared to the year-ago $94.8 million ($1.36 per share) on sales of $907.5 million. The quarter included $17.9 million in interest expense, up 43 percent, as well as $18.3 million in one-time refinancing costs. Scotts reported a strong lawn and garden season in nearly all parts of its business, and it remains confident of another year of record performance. The company also noted a significant increase in its international business in the first half, with those sales up 15 percent YTD. Six-month net income was $24.0 ($.35 per share) on sales of $1.26 billion, versus the year-ago $42.1 million ($.60 per share) and $1.16 billion, respectively.
New plants boost Hanfeng 1Q results
Toronto-Hanfeng Evergreen Inc. reported net earnings of $3.2 million ($.07 per diluted share) on sales of $24.2 million for the first quarter ending March 31, 2007, compared to the year-ago $532,000 ($.01 per share) and $2.1 million, respectively. The huge increase in sales is due to three new plants (Heilongjiang NPK, Jiangsu SCU, and Jiangsu Prill NPK), that came online in the 2006 and 2007. Actual production from all facilities was 77,000 mt during the quarter; however, actual annual capacity stood at 400,000 mt at the end of the quarter.
Marsulex results up despite rail woes
Toronto-Marsulex Inc. reported net income of $1.4 million ($.04 per share) on sales of $68.5 million for the first quarter ending March 31, 2007, up from the year-ago $700,000 ($.02 per share) and $46.9 million, respectively. Results were off at the company’s Western Markets Group, where transportation was disrupted by the CN rail strike. Marsulex says this resulted in lower sales and higher transportation costs for the unit’s sulfur-related products. Marsulex estimates the strike cost it $400,000 in gross profits, with the impact partially offset by higher sales of water treatment chemicals with the start of higher than normal spring run off in southern Alberta and lower raw material costs. Gross profits at Western Markets was off 9 percent, at $5.5 million on sale of $14.5 million, versus the year-ago $6.0 million and $14.7 million.
Anaheim ammonia leak sends 18 to hospital
Anaheim, Calif.-An anhydrous ammonia leak occurring at 10:30 p.m. May 8 from a 2,500 pound refrigeration tank at Nor-Cal Beverage Co. sent at least 18 people to the hospital and caused the evacuation of 40 to 50 homes at Nor-Cal Beverage Co., according to fire department officials. Anaheim department spokeswoman Maria Sabol told Green Markets the leak is believed to have occurred in a roof valve, one of five that responders had to deal with. Seven of those treated for either sore throats, eye irritation, or tightness of the chest were first responders who checked themselves in at the hospital. No one was admitted. Sabol said an intensive investigation is underway by hazard materials specialists and company officials, and the affected building has been closed for the time being. “If we had had more of a wind it would have dispersed faster,” Sabol reported. “As it turned out we had the leak stopped by 1:18 a.m. and were able to lift the evacuation.” In all, 55 firefighters, six ground ambulances, two HazMat teams, and 20 Anaheim police officers responded. The highway patrol also was on the scene in case the freeway had to be closed. Two other ammonia leaks occurred during the week – at the Ed Miniat Inc. meat processing plant in South Holland, Ill., causing the evacuation of 100 to 150 people for a few hours from about 18 businesses and residences in a two block area; and in refrigeration equipment at a Shamrock Foods Co. distribution plant in Phoenix, Ariz., which resulted in a maintenance man going to the hospital and employees evacuating the building. Still another incident occurred May 8 in Lake Odessa, Mich., when a truck pulling an ammonia nurse tank was struck in an intersection by a semi-tractor trailer. The tank was empty, however, according to news reports.