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Sinofert invests in Shandong Luxi

Hong Kong-Sinofert, China’s largest integrated fertilizer company, has announced a strategic partnership with Shandong Luxi Chemical Co., a major producer of chemical fertilizers. Shandong is the largest producer of coal-based urea in China. Distribution and cooperation agreements will grant Sinofert the exclusive right to sell, distribute, and market nitrogen fertilizers produced by Shandong Luxi in Heilongjiang, Jilin, Liaoning, and Jiangsu provinces, considered regions of strong market potential. Sinofert has the right to extend its geographic distribution of Shandong Luxi products. In addition, Sinofert has entered into a long-term supply arrangement with Shandong Luxi, in which Shandong will buy 70 percent of its potash from Sinofert. Sinofert, also known as Sinochem Hong Kong Holdings Ltd., has purchased 50 million new shares of Shandong Luxi Chemical Co., Ltd., listed as an A-share on the Shenzhen Stock Exchange. The share purchase represents 4.7 percent of Shandong Luxi’s equity after a new share issuance. The shares were priced at RMB 2.60 per share, a discount of 22.38 percent from Shandong Luxi’s closing price of RMB 3.35 per share on June 28. Sinofert is the only fertilizer company to take part in the new share issuance – other investors were primarily institutions. Potash Corp. of Saskatchewan Inc. owns 20 percent of Sinofert.

The Andersons announces public offering

Maumee, Ohio-The Andersons Inc. said June 29 that it has filed a registration statement with the Securities and Exchange Commission relating to a proposed public offering of 2.28 million shares of its common stock, of which 2 million shares are proposed to be sold by the company and 280,000 shares are proposed to be sold by certain shareholders. The underwriters will have the option to purchase up to an additional 342,000 shares of common stock from the company to cover over-allotments, if any. The company will not receive any proceeds from the sale of the shares by the selling shareholders. The company intends to use net proceeds it receives from the offering for investments in the ethanol industry, including in additional plants, as well as investments in additional railcar assets and for general corporate purposes.

Agrium hosts grand opening of ESN facility

Calgary-Agrium Inc. will host the grand opening of its ESN150 facility at Carseland, Alberta on July 12, 2006. ESN® is Agrium’s patented-process controlled release nitrogen product for broad acre crops. Agrium completed the expansion of the ESN facility at Carseland, Alberta, in February of 2006, bringing the total ESN production capability to 150,000 mt and making it the largest polymer-coated controlled release fertilizer production facility in the world. The plant is located 50 kilometers east of Calgary, and provides products mainly to the Western Canadian and U.S. markets. In addition to ESN, annual production at the Carseland nitrogen plant includes 535,000 mt of ammonia, 490,000 mt of urea, and 40,000 mt of Duration®, a controlled-release fertilizer for the turf and horticulture markets. All but 110,000 mt of the ammonia is used to manufacture urea. The plant also has a dry storage building for urea and ESN with a combined capacity of 74,000 mt.

Ag interests oppose Superfund label

Washington-Concerned that livestock manure used on farms as a substitute for commercial fertilizer could be regulated under Superfund law, agriculture is supporting proposed legislation that would clarify that the waste material is not considered a hazardous substance, a pollutant, or a contaminant under the Comprehensive Environmental Response, Compensation and Liability Act (CERLA, known as Superfund), and not subject to the Emergency Planning and Community Right-to-Know Act (EPCRA). The measure, HR 4341, sponsored by Rep. Ralph Hall, R-Tex., and more than 130 co-sponsors, is supported by, among others, the National Pork Producers Council and the American Farm Bureau Federation. AFBF Pres. Bob Stallman said congressional clarification is imperative to show that Superfund was written for industrial waste sites and never intended to be imposed on America’s livestock farmers, or to be used as a basis for lawsuits against farmers. “Asking America’s farm and ranch families to undertake the type of severe liability provisions included in Superfund would present economic peril for most livestock operations,” he insisted.

Agrico Canada celebrates 75th anniversary

Port Hope, Ont.-Agrico Canada Limited/Limitee celebrates its 75th anniversary July 8 with an open house in Port Hope, Ont., where the company began in 1931. Port Hope is the site of Agrico’s first head office. Highlights of the open house include a presentation by Dr. Jay Lehr of the Nutrients for Life Foundation, and an appearance by Olympic speed skating silver medalist Shannon Rempel. Rempel’s father, Rick, is a 25 year employee of Agrico and is vice president, marketing, Western Canada.

No sign of fertilizer in fish-kill study

Richmond, Va.-Extensive monitoring and sampling of the Shenandoah River and its North and South Forks have not pinned down the cause, either from fertilizer or other sources, of high numbers of fish kill since 2004, according to state Game and Inland Fisheries officials. What is probably the most extensive study of its kind began earlier this year, but one of the investigators, Larry Mohn, told Green Markets, “Nothing really stands out in the water quality data collected so far.” He said there had been very little runoff this year, and especially no events during the heavier fertilizing period. “The data does indicate a high level of nutrients related to base flow conditions, but those nutrients are coming from multiple sources,” Mohn added. He expects the project to be a multi-year undertaking that requires daily water quality testing and real-time hourly around-clock monitoring in the north and south forks, along with an extensive fish health study for signs of chronic stress and immune system effects.

Fertilizer not affected by new EPA regs

Washington-The recent EPA rule regulating agriculture discharges applies only to confined animal feeding operations (CAFOs) and requires nutrient management plans for large livestock producers, but does not affect the use of fertilizers, according to word from TFI. “We always keep an eye on regulation of nutrients regardless of the source,” TFI spokeswoman Kathy Mathers told Green Markets. “At this point I have not heard of any action of this kind pertaining to fertilizer nutrients.” According to American Farm Bureau Federation, EPA is proposing to require CAFOs to apply for water discharge permits and also to use nutrients and manage their operations in a way that minimizes the environmental impact. A 45-day comment period, along with public listening sessions around the country, will be provided following publication in the Federal Register.

Gro-Well acquires Sierra Organics

Glastonbury, Conn.-Gro-Well Brands, which manufactures and distributes a line of natural and organic lawn and garden solutions, including fertilizers, pest control, and lawn and garden soils, has closed on its acquisition of Sierra Organics, described as one of the largest regional natural and organic landscape and soil companies in the western states. The acquisition will expand Gro-Well’s presence into the California market. Founded only last year, Gro-Well includes as distributors Home Depot, Lowe’s, Menards, Sears, Target, Wal-Mart, and numerous regional independent nursery chains. The company cites recent studies by the National Gardening Assn. and The Freedonia Group that the natural and organic segment of the lawn and garden industry is expected to grow approximately 15 percent a year, or three times the overall industry rate.

Spokane phos ban possible by 2009

Spokane-Agriculture won’t be facing a ban on phosphorus use to help clean up the Spokane River. . .at least for now. The state legislature recently took the pressure off by restricting the use statewide of dishwasher detergents containing phosphates. “The ban is limited to household dishwashing products and does not apply to agriculture use,” reported Rob Lindsay, Spokane County division of utilities water resources manager. However, according to Spokane County Utilities Director Bruce Rawls, in the next two or three years the county and the other regional wastewater agencies will be leading a study of non-point sources of phosphates. “And fertilizer will be evaluated as a source at that time,” Rawls added. In Lake Oswego, south of Portland, city officials aren’t ready to talk about a phosphorus ban even though the local press reported that one is being contemplated. “It’s included in our council goals for the year, but we have yet to delve into the issue,” reported city spokesman Josh Thomas, who said the reporter was jumping the gun with his story. “It is hard to say what, if anything, will be done here in Lake Oswego,” Thomas admitted. “To be truly effective a ban may need to be regional. And we’re already providing information to our residents and setting examples though City practices that we hope would encourage voluntary measures aimed at improving water quality.”

Management Briefs

Spur Ventures Inc. reported that directors David Cohen and Ian He have opted to leave the board of directors. As a result, the board size has been reduced from eight to six. Mr. He has also retired as Spur president. Dr. Robert Rennie has been appointed president, and is now president and CEO.

Zhai Jidong has agreed to become president of Spur China, a subsidiary to be incorporated in the near future. Zhai was formerly president of Oinhuangdao Huaying Phosphoric Acid Co. Zhai is vice chairman of the China Phosphate Industry Association, director of the China Sulphuric Acid Industry Association, and a member of IFA’s agriculture committee.

Spur has granted options to each of its independent directors to purchase 75,000 common shares in the capital of the company, and to Dr. Rennie to purchase 250,000 shares. These options vest over a three-year period, and are exercisable at a price of $1.03 per share up until the date that is five years following the date of the grant.

Spur’s goal is to be the premier integrated fertilizer manufacturer in China, with plans to produce up to 1 million mt/y of NPK for domestic consumption in the central province of Hubei. These plans include the development of the largest phosphate deposit in China, near Yichang City.