Mississauga, Ont.-ICEC Canada Inc. is reportedly closing its office at the end of August and will halt fertilizer activity in the country, according to knowledgeable sources. Inquiries to ICEC headquarters in Houston were not returned.
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DOC issues duty order on China potassium salts
Washington-The Department of Commerce’s (DOC) International Trade Administration (ITA) has issued a countervailing duty order on certain potassium phosphate salts from the People’s Republic of China (PRC). The order was based on affirmative final determinations made by the DOC and the U.S. International Trade Commission (ITC) in June (GM, June 7, p. 10) that the PRC was providing countervailable subsidies to producers and exporters of the subject merchandise during a specific period of investigation, and that this merchandize is likely to be sold in the U.S. at less than fair market value. The investigation determined a subsidy rate of 109.11 percent ad valorem for PRC producer/exporters, and percentage weighted-average margins of 69.58 percent and 95.4 percent. In a recent Federal Register notice, the department said it had been notified by the ITC on July 15 that an industry in the U.S. “is materially injured as a result of subsidized imports of phosphate sales from the PRC.” The notice specifies two domestic products – Dipotassium Phosphate (DKP) and Tetrapotassium Pyrophosphate (TKPP) – that are covered by the scope of the order and suffered material injury, while a third product – Monopotassium Phosphate (MKP) – was found to be outside of the order, and therefore received a negative determination by the ITC. As a result, no countervailing duty order can be issued on imports of MKP from the PRC, the notice said. Because the ITC determined that imports of DKP and TKPP from the PRC are materially injuring a U.S. industry, however, the notice said all unliquidated entries of those potassium phosphate salts from the PRC, entered or withdrawn from warehouse, are subject to the assessment of countervailing duties.
Denta reports DoD wants more AN detectors
Jerusalem-IDenta Corp. has been contacted by the U.S. Department of Defense (DoD) about supplying more of its ammonium nitrate explosive identifiers, according to IDenta CEO Yaacov Shoham. “DoD has made this urgent order for the latest available explosive identifier – the new ammonium nitrate kit.” Shoham reported. “This order is in addition to the previously supplied kits.” He said the contact was made through IDenta’s new representative to the U.S., and that interest in this new test kit has been exceptional since last February’s article, published on The Wall Street Journal Web site, about its use in the Afghanistan war. He said DoD requested a timetable for supplying another large quantity – perhaps as many as 15,000 kits – and asked if they could be supplied in a matter of weeks. A patent application also has been filed, Shoham added.
Panel refereeing Helena’s clash with N.M. officials
Mesquite, N.M.-A mixture of interested citizens, including those who live close to Helena Chemical Co.’s fertilizer warehouse here, was on hand last week for a hearing on whether Helena should be able to operate without a state air quality permit. “There were a number of concerned neighbors and community members, I am told by people who went,” New Mexico Environmental Department (NMED) spokeswoman Marissa Bardino told Green Markets. While some contended the fertilizer-mixing operation produces odors and poses a public health threat, others supported the company, which has clashed since 2008 with state regulators over operating without the permit. Although Helena has maintained that independent data shows the Mesquite plant is well within state and federal air quality standards, NMED officials have refused to allow a waiver, citing the $400,000-plus in fines and penalties assessed to Helena over the years. State Environmental Secretary Ron Curry remarked, “I continue to be baffled by the actions this company continues to take.” The denial resulted in Helena appealing to the independent seven-member New Mexico Environmental Improvement Board, which has already has conducted three days of hearings in Santa Fe, where only one member of the public attended. At the Mesquite hearing last week that attracted 50 or more people, some declared that Helena is important to local farmers and their crops, with one agriculture official urging the board to “carefully consider the collateral damage that would occur if Helena is denied what they’re asking for.” An elementary school teacher claimed Helena’s plant is responsible for groundwater contamination that caused students to suffer nosebleeds. The hearings resume next Wednesday, and one attorney close to the process told the local press that the board likely will hand down a ruling within the next 90 days.
Intrepid bonds were for Langbeinite project
Carlsbad, N.M.-As previously reported (GM, July 26, p. 9), the Board of County Commissioners of Eddy County adopted an ordinance on July 20, 2010, authorizing industrial bonds up to a maximum of $90 million for an expansion at Intrepid Potash Inc. Intrepid has confirmed that the bonds are for the previously announced Langbeinite Recovery Improvement Project (GM, May 10, p. 13). Will Kent, Intrepid director of investor relations, contacted Green Markets to clarify a few items regarding the industrial revenue bond transaction. He said the transaction is “self-funded,” which means that the transaction will not utilize underwriters but will instead be funded internally by Intrepid, using cash and investment balances, cash flow from operations, or available borrowings under its senior credit facility. Intrepid is the largest producer of potash in the U.S. and is dedicated to the production and marketing of potash and TrioTM, a product produced from langbeinite ore. Intrepid owns five active potash production facilities – three in New Mexico, and two in Utah.
Sustainable ag groups push for climate change
Washington-Some 76 sustainable agriculture and environmental groups sent a letter to Senate leaders on July 13 urging them to pass comprehensive climate change and energy legislation in this session of Congress, and to include measures to encourage sustainable farming practices. “Agriculture is especially vulnerable to the adverse effects of rapid and unpredictable global climate change,” said Martha Noble, a policy analyst for the National Sustainable Agriculture Coalition. “Our farmers and ranchers will need federal resources, including conservation technical assistance and research, to cope with and adapt to regional climate changes.” The letter called climate change and energy legislation an “essential first step in addressing the wide-ranging climate threats and opportunities facing U.S. agriculture,” and admonished lawmakers to include “support for the agricultural sector to move towards sustainable practices with scientifically proven climate benefits for both mitigation of emissions and adaptation of agriculture to changing conditions.” The letter took a few swipes at conventional agriculture and the use of synthetic fertilizers. “Current research indicates that many sustainable and organic agriculture practices, such as using cover crops, leaving crop residue on fields, managed rotational grazing, and reducing or eliminating the use of synthetic fertilizers, can all contribute to reducing our nation’s GHG emissions,” the letter said. “By implementing innovative and sustainable farming practices we can reduce the heat-trapping gases emitted from farming and increase the amount of carbon stored in the soil on those farms.” Noble said the type of legislation the groups are advocating can provide a “win-win situation” for farmers and ranchers. “Not only will it enable them to better deal with rapid climate change, it can also significantly improve the conservation and economic performance of their farms and ranches,” she said.
Intrepid’s N.M. solution mine gets a lift
Denver-Intrepid Potash Inc. says its efforts to convert the idle HB property in New Mexico to a solar solution mine got a lift from the state in the form of a groundwater discharge permit, but the project still has a long ways to go. Intrepid is saying the okay from the New Mexico Environment Department is a major regulatory hurdle, but its timetable depends on completion of a Bureau of Land Management (BLM) environmental impact statement (EIS) that will likely delay initial production into late 2012 or early 2013. The BLM has issued its scoping summary report for the EIS and is moving forward on preparation of the EIS on schedule. Indications are that the EIS will be completed and federal approval granted by late 2011. “Intrepid is ready and financially able to fund one hundred percent of the HB project through its available capital resources the moment Intrepid receives all required permits and approvals,” said Bob Jornayvaz, Intrepid executive chairman of the board. Intrepid expects to invest between $120-$130 million to construct the HB Solar Solution Mine. Additionally, Intrepid anticipates that, when fully operational, the HB Solar Solution Mine will add between 150,000 to 200,000 st/y of additional low-cost potash production.
Uralchem OJSC announces reorganization
Moscow-Russian fertilizer producer Uralchem OJSC on July 26 announced that it had launched a reorganization of the Uralchem Group of companies as part of the transfer to a single stock. On July 23, the board of directors of Uralchem OJSC resolved to convene an extraordinary general meeting of the company’s shareholders and recommend that the shareholders resolve to reorganize the company by merging Azot OJSC and Uralchem Management Co. In order to resolve a merger with Uralchem OJSC, the companies that take part in the merger will hold extraordinary general meetings of shareholders in the beginning of September 2010. “The proposed merger will allow us to improve financial flows management in the Group and significantly decrease administrative and management costs,” said Dmitry Osipov, CEO of Uralchem OJSC. “In addition, reorganization will make the Group more attractive as an investment.” Uralchem said it plans to merge other companies within the group in the future. Uralchem is one of the largest companies in the nitrogen and phosphate fertilizer markets in Russia and the CIS, with annual production capacities of more than 2.5 million mt of ammonium nitrate, 2.2 million mt of ammonia, 0.8 million mt of MAP and DAP, 0.8 million mt of compound fertilizers, and 0.5 million mt of urea. Uralchem is the second largest ammonium nitrate producer in the world and number one in Russia. The company’s key production assets include Kirovo-Chepetsk Chemical Works OJSC in Kirovo-Chepetsk, Kirov region; Azot OJSC in Berezniki, Perm region; and Voskresensk Mineral Fertilizers OJSC in Voskresensk, Moscow region.
EPA awards Iowa $70,000 ammonia safety grant
Kansas City, Kan.-The Environmental Protection Agency (EPA) has awarded the Iowa Department of Agriculture and Land Stewardship (IDALS) $70,000 to be used to assure the continued safe handling of anhydrous ammonia by conducting on-site audits, workshops, and follow-up safety assessments of agricultural retail facilities. EPA Regional Administrator Karl Brooks explained, “This grant is designed to prevent releases and protect the health and safety of area residents, employees at the facilities, emergency responders and the environment.” He said the grant will be used for outreach, education, and implementation of the Clean Air Act’s Risk Management Program. All fertilizer facilities that handle, process, or store more than 10,000 pounds of anhydrous ammonia are subject to EPA’s chemical safety requirements. EPA Region 7 receives more accidental release reports for ammonia than for any other chemical. In addition to releases caused by transportation accidents, human error, and equipment failure, a number of releases have been caused by anhydrous ammonia thefts, because the chemical is a key ingredient in the illegal production of methamphetamine.
Correction: While Yara International ASA is taking an NOK 18 million write-down as a result of the planned sale of its 25 percent stake in Agrico Canada Ltd., the write-down in U.S. dollars is only $2.9 million, not $23.2 million as reported last week. The currency calculation error was due to the use of Euros instead of Kroners.
Management Briefs – August 2, 2010
K+S KALI GmbH, Kassel, Germany, announced that as of August 1, 2010, Hermann Weinbuch, managing director of K+S KALI France S.A.S., will retire after 35 years of service and positions in the German sales force and on the board of management. Dr. Knut Clasen will succeed Weinbuch as managing director. Clasen began his career in 1995 at BASF, and since 2000 has worked in several positions for the K+S Group in Germany and abroad. Since January 2007, Clasen has been head of sales for the potash and magnesium products business segment of K+S KALI GmbH, which comprises the fertilisers, industrial products, animal feed, and health care and food departments.
On July 1, 2010, Hans-Jürgen Müller became head of sales for the potash and magnesium products business segment of K+S KALI GmbH. Müller began his career with the company in 1984, and after holding different positions in marketing and sales, had been head of sales Fertiliser Europe since 2009.
Also on July 1, 2010, Dr. Achim Schnitzler, managing director of K+S Benelux bv, Breda, returned to Germany and became head of sales Fertiliser Europe. His successor is Niels Fanselow, formerly manager within the Sales Fertiliser Europe department.