The Fertilizers and Chemicals Travancore Ltd. will close an ammonia tender for 15,000 mt April 28. The company is asking for two lots of 7,500 mt each to be delivered to Kochi May 28-June 1 and June 11-15. FACT is asking for offers to include 180 days credit.

The company is in the process of upgrading its facilities at Kochi. It recently received permission to upgrade its storage facilities. Currently, FACT can only hold 10,000 mt in its Kochi tanks. The upgrade will allow it to store 20,000 mt. FACT said the upgrade will allow for it to buy its ammonia in larger quantities and, thereby, pay less for transportation costs.

According to the tender documents, FACT needs 700mt/d for its operations. The company splits its ammonia purchases among domestic suppliers, import contracts and open tenders. Generally, FACT buys its ammonia from Arab Gulf suppliers. The tenders help set the Indian delivered price as well as helping peg the Arab FOB price.

Nitrogen producer CVR Partners LP has announced that Mark Pytosh has been named president and CEO of the partnership’s general partner, CVR GP LLC, effective May 5, 2014. He will be based at the partnership’s headquarters in Sugar Land, Texas.

CVR announced in November that CVR President and CEO Byron Kelley planned to retire Jan. 1.

Pytosh was appointed as a director of CVR GP in June 2011. He will continue to serve as a director and the chairman of the environmental, health and safety committee.

“In addition to Mark’s proven leadership as a member of the partnership’s Board of Directors, his extensive finance experience and familiarity with our business will serve the partnership well,” said Jack Lipinski, executive chairman of CVR GP and CEO and president of CVR Energy Inc. which owns the general partner and approximately 53 percent of the common units of CVR Partners.

Pytosh most recently served as executive vice president and chief financial officer for Tervita Corporation, based in Alberta, Canada. Formerly known as CCS Corp. Tervita is a leading North American environmental and energy services company. From 2006 to 2010, Pytosh served as senior vice president and CFO for Covanta Energy Corp., which owns and operates energy-from-waste power facilities, biomass power facilities and independent power plants in the United States, Europe and Asia. Prior to Covanta, he served as executive vice president from 2004 to 2006, and CFO from 2005 to 2006, for Waste Services Inc., an integrated solid waste services company.

Pytosh spent 18 years in the investment banking industry working with a broad range of clients in the environmental services, automotive, construction equipment and a variety of other industrial sectors. From 2000 to 2004, Pytosh was a managing director in investment banking at Lehman Brothers where he led the firm’s global industrial group. Prior to joining Lehman Brothers, he was managing director at Donaldson, Lufkin & Jenrette where he led the firm’s environmental services and automotive industry groups.

Pytosh holds a bachelor’s degree in chemistry from the University of Illinois, Urbana-Champaign.

IFFCO Canada announced on April 16 that the Government of Québec has authorized the company to move forward with the proposed fertilizer plant at Bécancour. The decree was adopted on March 26 by the provincial cabinet upon recommendation by the Minister of Sustainable Development, Environment, Wildlife and Parks, and published in the April 16 edition of the Official Gazette of Québec.

IFFCO Canada said the adoption of the decree marks an important step in project development, as the company is now authorized to proceed with construction at the Bécancour Port and Industrial Park in central Québec. In addition to sanctioning the go-ahead, the government decree also details the commitments to which IFFCO Canada has agreed, including measures designed to protect and control air, water, and soil quality, as well as requisite environmental monitoring and emergency measures. The project enjoys the financial support of the Government of Québec through Investissement Québec.

“On behalf of IFFCO Canada, we wish to thank the Government of Québec, as well as all stakeholders for the diligence and rigour demonstrated during the environmental assessment of our project,” said IFFCO CEO Manish Gupta. “We also wish to thank the host community for unstinted support throughout the entire process, which has contributed to our obtaining the decree.”

The proposed facility would be one of the largest urea production plants in North America, with an annual production capacity of 1.3-1.6 million mt of granular urea and 760,000 mt of diesel exhaust fluid (DEF). The plant is scheduled to be completed in 2017 at a project cost of C$1.6 billion, based on the most recent bankable feasibility study. Canadian agriculture cooperative La Coop fédérée, one of the project shareholders, has agreed to purchase some 500,000 mt per year of urea for distribution across the company’s retail network in Canada and a number of U.S. states.

In January 2014 IFFCO Canada signed with Ganotec Inc., one of North America’s largest construction companies in the industrial and petrochemical sectors, to finalize project cost estimates and propose an engineering, procurement, and construction (EPC) contract for the facility. IFFCO Canada also reported in January that it had responded to a TransCanada PipeLines invitation to bid for transport capacity for natural gas for the facility. Maire Tecnimont of Italy, through their subsidiary Stamicarbon BV, has been selected as urea process technology provider and integrator for the facility. Ammonia process technology will be supplied by the U.S. company KBR.

“Our focus now is on project financing which, once finalized, will pave the way for construction of the industrial complex to commence,” Gupta said. “That said, work on the project continues to progress, the business environment remains favourable, and we are confident that the plant will be ready for commissioning in 2017.”
Founded in 2012, IFFCO Canada Enterprise Ltd. is a partnership between Coop fédérée and IFFCO, an agricultural cooperative based in India. In January 2013 the company acquired the land for the proposed fertilizer plant, touting the central Quebec location in Bécancour as having land, rail, and water access that would allow distribution across North America and also for export markets via the location’s deep water port facilities.

Pacific Coast Terminals Co. Ltd. (PCT) and K+S Potash Canada General Partnership (K+S Potash Canada) on April 14 signed an exclusive, long-term contract for the handling and storage of potash products from K+S Potash Canada’s Legacy mine site.

Under this agreement, the parties will construct a new potash handling facility at PCT’s bulk handling terminal located in Port Moody, British Columbia. Potash products arriving by rail from the Saskatchewan-based Legacy mine will be unloaded and stored on site and loaded to vessels destined for K+S Group’s international clients.

K+S Potash Canada and PCT are forming this longstanding partnership to ensure that the transport of the Legacy potash products to international clients is handled with high quality standards, state-of-the-art technology and in a manner that is both secure and competitive. Commissioning and mechanical completion of the new potash handling facility are planned for the fall of 2016.

The construction program will include infrastructure, a new railcar unloading station, new covered conveyor systems, systems to control dust emissions and a new storage warehouse. It will start immediately after the required permits from the authorities are issued. Additionally, dredging of the Burrard Inlet will deepen the shipping channel to allow improved vessel navigation and vessel transit windows.

“We are very pleased to have signed a contract with PCT, whose terminal operations are located at a strategically favorable location in Port Moody,” says Dr. Ulrich Lamp, President and CEO, K+S Potash Canada. “PCT will provide its excellent expertise to store and handle the potash produced at the Legacy mine, and will allow K+S to deliver potash products to emerging regions in Asia, South America and North America. This world class facility will meet internationally recognized environmental standards.”

“PCT couldn’t be more pleased with this agreement,” stated Lorne Friberg, President and CEO of Pacific Coast Terminals Co. Ltd. “Working in collaboration with K+S Potash Canada provides significant mutual benefits to both of our organizations. The expansion of our operations also allows for a greater contribution to the City of Port Moody in terms of new jobs, additional municipal taxes, and increased support to local community organizations and events”.

In response to growing concerns about delayed fertilizer deliveries to North Dakota dealers and farmers, Sen. John Hoeven (R-N.D) reported on April 14 that he has received assurances from BNSF Railway Executive Chairman Matt Rose that the railroad is assigning additional unit trains and adding crews to address the problem.

According to an announcement from Hoeven, the senator pressed Rose over the weekend on the importance of getting fertilizer to farmers within the critical planting window. Hoeven said Rose responded by saying that BNSF is reallocating resources to significantly reduce the delays, including assigning unit trains with
locomotives to move fertilizer products more quickly. Hoeven said Rose also promised to add more crews to move the increased unit trains, and to work with customers to load and unload cars rapidly.

“Dedicated unit trains carrying only fertilizer will enable the cars to get to their destination without being uncoupled and reassigned multiple times before arriving,” Hoeven said. “This will allow the fertilizer cars to keep moving.”

Hoeven’s announcement came just five days after North Dakota Gov. Jack Dalrymple signed an executive order waiving the Hours of Service (HOS) requirements for drivers of commercial motor vehicles transporting anhydrous ammonia in North Dakota.

Citing “lengthy rail delays” and a disruption in ammonia production at Agrium Inc.’s Redwater fertilizer plant in Alberta, Dalrymple said a “state of emergency” exists that makes the waiver necessary to ensure that carriers, agribusinesses, and farmers “can secure, obtain, transport, and deliver anhydrous ammonia to meet the needs of our state.” The waiver will remain in effect through May 24, 2014.

The Mosaic Co. signed definitive agreements today with Archer Daniels Midland Company to acquire its fertilizer distribution business in Brazil and Paraguay for $350 million. The purchase price assumes the delivery of $150 million in working capital at closing. Mosaic says the acquisition is expected to significantly accelerate Mosaic’s previously announced growth plans in Brazil as well as replace a substantial amount of planned internal investments in that country. Under the terms of the agreement, Mosaic would acquire four blending and warehousing facilities in Brazil, one in Paraguay and additional warehousing and logistics service capabilities.

The acquisition of ADM’s fertilizer distribution business would increase Mosaic’s annual distribution in the region from approximately 4 million mt to about 6 million mt of crop nutrients. In addition to the acquisition, Mosaic is in process of completing approximately $100 million in projects including expansion of the company’s port terminals, plants and production capabilities.

"The addition of ADM’s fertilizer distribution business in Brazil and Paraguay facilitates two critical strategic priorities for Mosaic. It enhances our global growth strategy and expands our market access," said Mosaic President and CEO James Prokopanko. "This acquisition provides a critical distribution platform in one of the world’s fastest growing agricultural regions, and it complements our other recent strategic initiatives, including our joint venture in Saudi Arabia, our recent acquisition of CF Industries’ phosphate business and our ongoing potash expansion program."

"Acquiring ADM’s fertilizer distribution business accelerates our existing growth plans in Brazil and provides access to new customers throughout the country and in Paraguay," said Tobias Grasso, Mosaic’s Country Manager in Brazil. "We will gain scale and operating efficiencies through this acquisition, as well as a talented group of employees who will join our team."

The parties have also negotiated the terms of five-year fertilizer supply agreements providing for Mosaic to supply ADM’s fertilizer needs in Brazil and Paraguay.

Mosaic will fund the acquisition with cash from operations. The transaction is not expected to impact Mosaic’s shareholder distribution plans. The proposed sale will be contingent on customary regulatory approvals.

Indiana Governor Mike Pence on Tuesday issued a statement saying the state government has reconsidered its position with respect to Midwest Fertilizer and is again in discussions with the company. Indiana withdrew support for the project in 2013 citing U.S. Department of Defense allegations that the Pakistan-based Fatima Group, which is a major backer of Midwest Fertilizer had not been fully cooperating with DOD with respect to stopping explosives development in Pakistan and Afghanistan.

“Specifically, U.S. Department of Defense officials have confirmed that an experimental formula is being developed by Fatima Group to be more inert and less-detonable to limit its usefulness to extremists and terrorists. This week, the State of Indiana was informed that our defense experts completed the second series of tests on the experimental formula and described Fatima Group’s efforts to improve the safety of its fertilizer as "commendable.” In addition, U.S. officials have reported that the government of Pakistan and the Fatima Group have implemented several positive measures to make it more difficult for extremists and terrorists to obtain the company’s products in the region. “

“With these assurances from the U.S. Department of Defense, we believe it is appropriate for the State of Indiana to reopen our discussions regarding state economic incentives for this project. With continued cooperation on the part of the government of Pakistan and Fatima Group, we remain hopeful that the State of Indiana will be able to renew our support for this important economic development project with the confidence that we have done so in a manner that put the interests of our soldiers and their families first.”

In the meantime, Indiana’s inaction did not stop local Posey County or Midwest from proceeding with the project, though it has not reached the ground-breaking stage.

CHS Inc., St. Paul, Minn., reported on April 14 that it and River Country Cooperative, a diversified agricultural retailer based in South St. Paul, have completed their study of a formal business merger and will move the process forward, pending further due diligence. The proposed business agreement will be voted upon by River Country’s membership this summer.

"The business is solid today, but our customers’ needs are changing and we want to grow our size and scale to meet those needs," said Myron Tank, chairman of River Country’s board of directors. "We looked at a number of different ways to do that and determined CHS would be the best partner to align with for the future."

In business since 1935, River Country Cooperative is a full-service supplier, providing fuel, fertilizer, grain, and feed products and services to customers from 14 locations in east-central Minnesota.

"Our commitment is always to our owners and customers around how we can help them grow and succeed," said John McEnroe, executive vice president, CHS Country Operations. "The business opportunity that allows us to expand our resources within our core territory is certainly a strong benefit to our owners."