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MagIndustries Corp. – Management Briefs

Management Briefs

MagIndustries Corp., Toronto, said Jan. 19 that CEO Rich Morrow has resigned and has accepted a new role at the company as director of investor relations and corporate development. The transition is effective Feb. 15, 2012. Following that date, Longbo Chen, MagIndustries’ Co-CEO, will take over the role as sole CEO.

Mag says Chen has 27 years experience in project investment in African, Asian, and Middle Asian developing countries. Prior to joining Mag in 2011, he had been vice chairman and CEO of an A-share listed company in China for 12 years. He has business and personal experience in capital markets, project finance, and project management. Chen holds a Ph.D. in Management from Xi’an Jiaotong University, and a Master of Public Management degree from Carnegie Mellon University.

Chen came to Mag after it was taken over by Chinese-owned Evergreen Industries Group in 2011. Mag is involved in potash development in the Republic of Congo.

Passport Potash Inc. – Management Briefs

Management Briefs

Passport Potash Inc., Vancouver, has announced the appointment of David Salisbury as a director and chairman of its board of directors. Passport reports that he has an extensive career in the mining industry spanning four decades, including seventeen years with Rio Tinto plc. During his career he has had experience in almost all phases of mine development and operation. Most recently, he was president and CEO of Resolution Copper Mining, which was responsible for the development of a deep underground copper mine in Superior, Arizona.

Passport also announced the recent resignation of another director, Gary Zak.

Passport is currently eyeing the development of a potash project in the Holbrook Basin in Arizona.

Vote on Mosaic Wingate Creek Mine expansion set for Feb. 2

Central Florida, News, News Briefs

Bradenton, Fla. — The Manatee County Commission will vote on a plan for The Mosaic Co. to expand its Wingate Creek Mine by another 3,000 acres on Feb. 2. Mosaic spokesman Russell Schwiss said the plan had received unanimous approval from the county’s planning board and was "noncontroversial." However, it was being opposed by the Sierra Club and Manasota 88, which spoke against it, along with a Duette resident. Opponents said the mine threatens nearby parks, waterways, and wetlands. The 7,300-acre Wingate Creek Mine has been in operation for about 30 years, so does not requires new discharge permits. The tract does contain an isolated 46-acre wetland, Schwiss said.

Tax court rules against CVR

Midwest, News, News Briefs

Wichita — CVR Energy Inc. reports that on Jan. 13, 2012, the Kansas Court of Tax Appeals (COTA) issued a ruling concerning the property tax valuation of the Coffeyville Resources Nitrogen Fertilizers LLC (CRNF) fertilizer plant, affirming a 2008 assessment of CRNF’s fertilizer plant as almost entirely real property instead of almost entirely personal property was appropriate. The 2008 assessment resulted in an increase to annual property tax expense for CRNF by approximately $10.7 million. CRNF is a wholly owned subsidiary of CVR Partners LP. CVR Energy owns the general partner and 69.7 percent of the common units of the LP. CVR disagrees with the ruling and plans to file a petition for reconsideration with COTA, and if necessary, an appeal to the Kansas Court of Appeals. The LP is also protesting the valuation of the CRNF fertilizer plant for tax years 2009 – 2011, which cases remain pending before COTA. CRNF has fully accrued and paid the property taxes the county claims are owed for the years ended Dec. 31, 2010, 2009, and 2008, and has fully accrued such amounts for the year ended Dec. 31, 2011. The first payment in respect of CRNF’s 2011 property taxes was paid in December 2011, and the second payment will be made in May 2012. If CRNF is successful in having the nitrogen fertilizer plant reclassified as personal property, in whole or in part, a portion of the accrued and paid expenses would be refunded to CRNF, which could have a material positive effect on CRNF’s and the company’s results of operations. If CRNF is not successful in having the nitrogen fertilizer plant reclassified as personal property, in whole or in part, CRNF expects that it will continue to pay property taxes at elevated rates.

Old Bridge ramping up to full zinc production

News, News Briefs, Northeast

Old Bridge, N.J. — Old Bridge Chemicals officials have advised Green Markets that they expect their new granular zinc sulfate production facilities (GM Jan. 16, 2012) will be producing in the range of 2,500 tons per month in the first stage and will triple that capacity as it ramps up to the second stage in future months. “We are in production making for both feed and fertilizer product,” spokesman Justin Chrepta advised. “We’re not at full production now, but by ramping up slowly we foresee being there by mid-February. I would say by May or June we should be tripling our production.” Chrepta said the response from the market has been very positive, with people coming in to view the technology and the plant, noting that they have been very impressed with Old Bridge’s improved capability. There also have been numerous inquiries and numerous clients on board to make purchases. “I would like again to tout that this is a U.S. manufactured product and the largest manufacturer of copper and zinc compounds and solutions in the United States. We have the reputation of having the highest quality chemical, and this new facility should guarantee our maintaining that position. We also perceive making further additions and improvements to insure the highest quality to the animal feed and agriculture industry.” Old Bridge Chemicals produces a variety of inorganic chemicals, including copper sulfate (both liquid and crystal), copper carbonate, tri-basic copper sulfate, zinc chloride, zinc sulfate (both liquid and powder), zinc orthophosphates, and phosphoric acid.

Chevron joins TSI

News, News Briefs, Sulfur

Washington — The Sulphur Institute (TSI) reports that it recently added Chevron Products Co., a division of Chevron U.S.A. Inc., as a new member of its organization. Chevron Products directly manages the logistics and marketing of sulfur at seven facilities in the U.S. and Canada, producing elemental molten sulfur at both petroleum refineries and gas processing plants. TSI now has eight sulfur-producing members and a total of 45 members. Founded in 1960, TSI represents all stakeholders actively engaged in producing, buying, selling, handling, transporting, or adding value to sulfur on a global basis.

Allana files Danakhil potash PEA

Eastern Canada, News, News Briefs, Potash Muriate

Toronto — Allana Potash Corp. has filed a National Instrument 43-101 technical report dated Nov. 28, 2011, on SEDAR. The technical report is with respect to Allana’s preliminary economic assessment (PEA) completed on the company’s Danakhil potash deposit, located in the Afar state, Ethiopia, the results of which were announced in November. Highlights include: after-tax net present value at 12 percent of US$1.85 billion; after-tax internal rate of return of 36.8 percent; total development capital expenditures, including mining, processing facilities, port and logistics infrastructure (capex) of US$796 million; total operating expenditures (opex) on a per-mt basis (including production, transportation/handling, port, loading costs) FOB on the vessel of US$90.54. The PEA is based on annual production of 1 million mt/y of MOP using solution mining; potential to expand production to 2 million mt/y of MOP; SOP production potential to be examined during the continuing feasibility study. Allana notes that the PEA is preliminary in nature, and includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves.

Mosaic gives potash outlook, buying timeline

Midwest, News, News Briefs, Potash Muriate

Plymouth, Minn. — The Mosaic Co. President and CEO James Prokopanko gave his views on the upcoming potash buying season at the CIBC Whistler Institutional Investor Conference Jan. 19. He says that despite a current lull in the potash market, Mosaic expects a record year of potash consumption – about 58 million. He said the second half will be better than the first half, and the second quarter will be better than the first quarter. “The excitement about purchasing potash has been muted, due to the volatility and uncertainty about where grain prices are going.” However, he said that while fertilizer relative to corn is very well priced and very affordable, dealers remember 2008. “They had large positions, global financial crisis, commodity prices plunge, and it was a near-death experience for many dealers.” He said fertilizer is going to go to the field, that dealers are just not ready to take price risk right now. He said the industry has helped dealers by putting in place future price deferred contracts in which they take ownership of the product and it is priced at a later date. Prokopanko expects January and February to be slow, and that things will be just fine in March. He expects a strong April and May. Although he expects the Chinese to come into the market by the end of March, he thinks the Indians can wait and defer to at least July.

Martin offers, prices stock

News, News Briefs, Southeast

Kilgore, Texas — Martin Midstream Partners LP said Jan. 20 that it has priced a public offering of 2,300,000 of its common units at a price to the public of $36.15 per unit. The closing of the offering is expected to occur Jan. 25, 2012. Net proceeds will be used to repay outstanding indebtedness incurred under its revolving credit facility and for general partnership purposes. Amounts repaid under the revolving credit facility may be re-borrowed to fund future acquisitions and expansion capital expenditures.