Chile’s SQM said March 25 that it has supplied the country’s tax authorities information pertaining to US$11 million in payments that originated from the office of SQM’s former CEO Patricio Contesse during the six year period from 2009-2014 that may not meet the requirements to be qualified as tax expenses under the Chilean tax code because of insufficient supporting documentation.

SQM said going forward it may be subject to 35 percent taxes on payments that did not qualify as tax expenses, as well as interest and penalties.
 
In the meantime, SQM has decided to hold a shareholder meeting April 24, 2015. At that meeting, an election for the entire board will take place. In the meantime, the board will continue to function with its five members, which does form a quorum. Potash Corp. of Saskatchewan Inc.’s three members resigned March 17.

In addition to tax and political contribution investigations in Chile, SQM acknowledges that in the U.S., a class action lawsuit is being established based on allegations that the company failed to make certain disclosures about these issues.

EuroChem Group AG has shelved plans to build a $1.5 billion nitrogen plant in Louisiana, according to Bloomberg. The company said U.S. sanctions limit access to funds and the Russian ruble’s drop makes projects in the fertilizer producer’s home market attractive.

Russia was sanctioned by the U.S. and Europe last year over the conflict in Ukraine, preventing Russia’s largest lenders and some companies from borrowing in the U.S. and European Union. The ruble plunged 46 percent against the dollar last year, cutting domestic costs.

Israel Chemicals Ltd. is examining options for building a potassium nitrate plant. The move is part of an effort to increase production of soluble fertilizers and food grade phosphoric acid. ICL said the plant would be located near a potash production plant though not necessarily in Israel. The company also has potash plants in Spain and Britain and produces phosphates in Israel.

Potash Corp. of Saskatchewan Inc. said March 18 that changes to potash taxation in conjunction with the Government of Saskatchewan’s 2015-16 provincial budget are expected to decrease the company’s 2015 pre-tax earnings by C$75-$100 million. PotashCorp said the impact reflects a significant change in the timing of the annual allowable deduction for expansion and maintenance capital expenditures and is most pronounced in 2015 – and to a lesser extent 2016 – as the company winds down capital expansion projects and incurs higher maintenance capital spending as a result of these expansions.

A potash taxation review was also announced as part of the budget release.

 “PotashCorp is disappointed in the announcement today,” said President and CEO Jochen Tilk. “While we understand the difficult revenue situation facing the government, we are nearing completion of a $6 billion investment in Saskatchewan which was based on the existing tax structure remaining in place. Changing the rules midstream impacts the ability of our shareholders to earn a fair return on their capital and undermines Saskatchewan’s relative competitiveness.”

“A stable, predictable and fair potash taxation system is important for both the province and the industry. Under the current regime, PotashCorp’s operations and investments have created thousands of jobs and continue to support numerous suppliers throughout the province,” Tilk said. “We are focused on ensuring that any changes to the existing system continue providing benefits to the people of Saskatchewan, while also protecting the competitiveness of the industry and the long-term interests of our investors, employees and customers. A constructive and consultative review process is an important part of ensuring such an outcome, and it is our hope that the government will pursue this avenue.”

Sociedad Química y Minera de Chile SA on March 18 the following statement: “The board of directors promptly initiated internal investigations and created a special committee to complete an extensive and independent report, and instructed the committee to utilize all resources it deems appropriate. The committee has contracted independent consultants from both Chile and the United States of America, and will continue to provide information to the regulatory authorities as necessary.”

The board also agreed to terminate the employment contract of Patricio Contesse G. and voluntarily provided the Chilean Internal Revenue Service with all of the information that was requested by the Public Prosecutor and will continue to do the activities necessary to reach a prompt conclusion.

SQM also comments that despite the current situation, in particular the public exposure, the company continues to focus on its core businesses.

Pinnacle Agriculture Holdings LLC announced on March 17 that it has opened a new retail location in Edson, Kan., that will offer fertilizer, seed, crop protection chemicals, and precision agriculture services to area growers of corn, soybeans, grain sorghum, and wheat.

The facility at 2704 County Road 64 will operate as part of Pinnacle’s Performance Agriculture™ brand. The start-up team includes Justin Foss, location manager; Stuart Schmidt, sales and operations manager; and Darrick Zerr, sales representative. Foss has worked in agriculture retail for 17 years, Schmidt brings 23 years of agriculture experience in a variety of sales roles, and Zerr has 20 years of experience in agriculture machinery sales.

“Our team is excited to expand the Performance Agriculture footprint into northwest Kansas,” said Foss. “We realize that strong agronomic recommendations and a high level of service are key factors in making our customers successful, and we look forward to helping area farmers be as profitable as possible.”

Pinnacle now serves growers in 27 states through its Sanders®, Performance Agriculture, Providence Agriculture™, AgOne Application Services™, OptiGro®, Innvictis™, Meridian™, and Altitude™ brands. The company has launched five new locations since December 2014.

“We are happy to have such an experienced management team to offer high-quality products and superior service,” said Keith Karnes, regional business director for Performance Agriculture. “We feel confident that the farmers of northwest Kansas will benefit from our offerings and that our team will add value to their business.”

Sociedad Química y Minera de Chile SA, which is the target of a Chilean government investigation for campaign fund violations, has announced that three board members have resigned–Wayne R. Brownlee, José María Eyzaguirre B., y Alejandro Montero P.

SQM said all three were elected with votes of the shareholder Potash Corp. of Saskatchewan Inc. Their resignations were effective March 17, 2015. PotashCorp owns a 32 percent stake in SQM.

On March 16, SQM agreed to terminate CEO Patricio Contesse González. He was replaced by Patricio de Solminihac Tampier.

In the past, the government has levied fines totaling $164 million against company executives. These related to stock trades.

Sociedad Química y  Minera de Chile SA reports that on March 16 its board of directors met and received a letter from SQM CEO Patricio Contesse González, in which he put his position at the will of the board. After deliberating at length and considering the best interest of the company, the board said it agreed to terminate Contesse’s employment contract with SQM. The board expressed its gratitude to Contesse for his over 25 years of service and dedication to the company.

Thereafter, the board voted unanimously to designate Patricio de Solminihac Tampier as the new CEO of SQM, effective immediately.

SQM is under investigation by Chilean authorities and they are seeking documents from the company. The initial scope of the investigation is political campaign donations. In the past, the government has levied fines totaling $164 million against company executives, including Contesse. These related to stock trades.

The U.S. Bankruptcy Court for the Southern District of Mississippi has approved a motion to push back the date of the Mississippi Phosphates Corp. auction from March to May.  As a result, bids are now due May 5, with an auction May 12 and a hearing to approve the final sale May 22.

Bids were initially due in March 17. By March 16, various creditors objected to the terms that had been assessed for unexpired leases and executory contracts. As a result, more time was needed to iron out those disagreements.