Santiago-Sociedad Quimica y Mineral de Chile S.A. (SQM) reported a 25 percent increase in net income for the first quarter ending March 31, 2007, to US$43.0 million (ADR $1.63) on sales of $237.2 million, compared to the year-ago $34.3 million (ADR $1.30) and $219.1 million. Specialty plant nutrient sales were off slightly during the quarter, to $102.1 million from the year-ago $107.0 million. SQM attributed the lower number to a delay in sales of sodium potassium nitrate to Brazil. SQM said it expects total sales volumes to Brazil to be higher in 2007 than in 2006. In other news, SQM said it has budgeted $230 million for capital expenditures in 2007, with money going to the completion of the Maria Elena project; investment in a new potassium nitrate production facility at Coya Sur; completion of the granulation and prilling facility at Coya Sur; the renewal of railroad and rolling stock; expansion of lithium carbonate production and the Salar de Atacama operation; and development of new mining areas at Pedro de Valdivia.
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Fertilizer and sulfur boost Canadian Pacific 1Q
Calgary-Canadian Pacific Railway Ltd. reported that a 31 percent increase in revenues from fertilizer and sulfur shipments in the first quarter helped boost its first quarter earnings to $128.6 million on revenues of $1.1 billion, up from the year-ago $108.8 million and $1.1 billion, respectively. Revenues from fertilizer/sulfur were $122.4 million, up from the year-ago $93.1 million. The increase helped offset weather-related operating conditions that CPR said challenged the entire transportation chain. CPR said weather disruptions and the CN strike increased network congestion, resulting in a reduction in the shipments of coal and some other commodities. However, fertilizer/sulfur railcar volumes were up 28.7 percent.
SaskPool extends offer for Agricore
Regina-Saskatchewan Wheat Pool Inc. says it is extending the expiration date of its offers to acquire all outstanding limited common voting shares and Series A convertible preferred shares of Agricore United from April 25 to May 15. However, Agricore has advised shareholders that it favors the competing offer of James Richardson International Ltd. (GM April 23, p. 13).
Koch Nitrogen to improve Dodge City efficiency
Dodge City, Kan.-Koch Nitrogen Co. said April 25 that in May it will begin a construction project at its nitrogen plant here aimed at improving plant efficiency and reducing water consumption. “While production will be down during the project, we will have produced and stored enough fertilizer to fulfill our commitments to customers,” said Gary LeRock, plant manager. “When construction is complete in June, we expect to improve our ability to process natural gas, our main feedstock for producing ammonia. As a result, we will increase our reliability and efficiency.” The total project is estimated at nearly $19 million and will require approximately 400 employees from construction firm contractors, many from outside the Dodge City area. Koch makes ammonia, UAN, and carbon dioxide at the plant, which began operations in 1968. The company has 42 employees in Dodge City. A Koch spokesperson said it will not impact the actual amount of fertilizer produced and did not give an estimate of how much gas and water would be saved. Approximate ammonia and UAN capacities at the facility are 309,000 st/y and 255,000 st/y, according to the International Fertilizer Development Center.
Mosaic prepays $250 M of debt
Plymouth, Minn.-The Mosaic Co. said April 26 that it is notifying the lenders under its senior secured bank credit facility that it is electing to prepay $250.0 million principal amount of term loans under the facility on May 1, 2007. After the prepayments, outstanding term loans under the facility will be reduced to $34.5 million principal amount of term loan A borrowings, $301.2 million principal amount of term loan A-1 borrowings, and $465.3 million principal amount of term loan B borrowings. The prepayments are being made from available cash generated by the ongoing business operations. Mosaic sees the prepayments as a significant step in its plan to reduce outstanding borrowings, strengthen its balance sheet, and achieve investment grade credit ratings.
CP ammonium sulfate wreck kills engineer
Calgary-Canadian Pacific Railroad officials reported they have found the body of the engineer killed in the April 23 derailment of an ammonium sulfate train on its way to a smelting and refining complex operated by Teck Cominco Ltd. near Trail, B.C. CP spokeswoman Breanne Feigel said two other crew members were uninjured in the derailment, which occurred about 3 p.m. Pacific time. She said the engineer’s body was found among the wreckage the following day; the circumstances surrounding the death are still under investigation, as is the cause of the derailment itself. Feigel said there were two engines and 10 cars in the train, including eight loaded with ammonium sulfate and two empty tankers, operating on a CP short line. An undetermined amount of the ammonium sulfate was spilled from the cars, she reported, but not all of the cars leaked. A CP cleanup crew was able to clear the area using a vacuum truck, Feigel added, and there are no concerns the site poses an environmental or safety hazard. Meanwhile, CP officials are working with Transport Canada and the Transportation Safety Board to determine the cause.
NH3 spill routs 300 in small Illinois town
Seward, Ill.-Nearly everyone in this small Illinois town of nearly 300 residents was evacuated overnight from their homes on April 23 after 20 tons of anhydrous ammonia that was released accidentally from a farm supply center hovered over the town for several hours. Several residents were checked over at the local hospital, with one remaining for observation until the next day, according to Dennis Ross, general manager at Seward Agriculture Supply, where the release occurred. Ross explained that a hose burst on a semi-transporter while it was unloading into a storage tank. “It was late at night and there was very little wind. So the vapor cloud hugged the ground and spread over the town,” Ross reported. He said the evacuation went very well since “people listened, cooperated and got out of town when they were told to.” They were allowed back in their homes the next morning after spending the night at two high schools in the nearby towns of Winnebago and Pecatonica about eight miles away, or with friends or relatives.
Everything okay after NH3 car derails
Baltimore, Md.-CSX officials said two cars, including one carrying anhydrous ammonia that derailed while being switched in the yards early April 24 in South Baltimore, turned out to be a non-incident. But observers say that even though there was no release or injuries, it could add to the controversy over rerouting hazardous waste traffic around populous communities. CSX spokesman Garrick Frances reported that the site is a well-traveled area, with I-895 located close by, but he said no major thoroughfares had to be shut down and that “we were fortunate that the situation worked out the way it was supposed to.” Frances said a crane was brought in to upright the cars that had come off the tracks and were leaning to the side, and everything was back to normal by noon. As far as he knew there was no product loss or damage to the cars. He didn’t know their destination since they were not joined with a train at that point.
County racing to regulate fertilizer
Sarasota, Fla.-With a proposal in the Florida Legislature to ban local governments beginning May 1 from adopting their own rules regulating fertilizer use, the Sarasota County Commission was moving quickly last week to adopt its own version, according to the Sarasota Herald-Tribune. An amendment proposed by Rep. Bryan Nelson of Apopka would establish a task force to set a statewide standard for fertilizer use, but officials in many local governments fear that whatever is ultimately adopted would be weaker than what they believe is necessary. Sarasota Bay and portions of the Gulf of Mexico suffer outbreaks of red tide, an algae bloom, during warm weather. Red tide kills fish and other marine life by reducing oxygen in the water. Some scientists believe fertilizer runoff is a major part of the problem. The bill, CS/HB 1197, recognizes a need for better training and education regarding the safe use of consumer fertilizers. But the bill stated that, “Local government regulation of fertilizer uses for urban turf and landscape applications is not necessarily based on sound horticultural science and agronomic needs.” If passed, existing local ordinances could be challenged in court and forced to comply with state regulation. The task force, which would be made up of representatives from the fertilizer industry, agriculture, water management districts, the legislature, and local governments, would report on its findings and recommendations by Jan. 15, 2008. Further action would depend on the state legislature. Sarasota County fears the state would not take its problems with red tide fully into account. The county’s proposed ordinance would require time-released fertilizers and restrictions on applications within 25 feet of a waterway. The fertilizer industry is concerned that it would be difficult, if not impossible, to comply with ordinances in 67 counties and 408 municipalities. Several local governments already have fertilizer ordinances in place, including St. Johns County in northeastern Florida, while many others, including the city of Sarasota, were in the process of considering fertilizer ordinances, which will not be completed before the May 1 deadline.
NH3 security plan urges use of dye
Lansing, Mich.-Agricultural interests are supporting the recent adoption of statewide anhydrous ammonia safety and security practices which encourage, among other things, the use of a dye additive to discourage theft and unlawful uses. Without mentioning GloTell, the only such product available, the Michigan Agriculture Commission, which approved the practices, suggested use of a “dye that will on release from an ammonia tank stain skin and clothing in a highly visible manner.” Sellers and end users who voluntarily comply with this, along with using a functioning tank or valve lock, removing nurse tank hoses when not in use, parking tanks downwind of sensitive areas, not leaving tanks sitting in a field overnight, and not keeping full tanks on site any longer than absolutely necessary, will be granted immunity from personal injury and property damage claims caused by theft or unlawful use. The Michigan Agri-Business Assn. welcomes the Anhydrous Ammonia Safety and Security Practices, or AASSPs. In fact, reported MABA Policy Director Bob Tadsen, “We actually helped write the AASSPs, so we are very comfortable with them.” The agriculture commission was directed to develop and issue the AASSPs by March 29, 2007, under the Anhydrous Ammonia Security Act, Public Act 417 of 2006, with input from Michigan Dept. of Agriculture, State Police, Michigan State University Extension, producer groups, the fertilizer industry, and local law enforcement. A workgroup with these partners was organized last fall to identify the safety and security practices. Michigan Dept. of Agriculture Director Mitch Irwin noted, “The adoption of AASSPs by Michigan producers and the fertilizer industry helps protect anhydrous ammonia fertilizer for its agricultural use and curb its theft in Michigan for illegal use.”