Liberty Metals & Mining Holdings LLC, a subsidiary of Boston-based Liberty Mutual Insurance (LMM) has acquired 25 percent of the shares in Yara Dallol BV (Yara Dallol) for $51.25 million. Yara’s share of the proceeds is $35.4 million.

On Feb. 13, Yara confirmed the feasibility of extracting potash in the Danakil depression in North-Eastern Ethiopia. Following this transaction Yara will hold 51.8 percent of the shares, LMM 25 percent and XLR Capital Ltd.  23.2 percent in Yara Dallol.

"The Dallol project will support Yara’s strategy for further development of premium fertilizer for high-value crops, and this transaction underlines the attractiveness of the project. We are pleased to join forces with a dedicated investor like LMM, and look forward to develop the project further with our partners," said Svein Tore Holsether, president and CEO of Yara.

The feasibility study confirmed reserves and the technical viability for an annual production of 600,000 mt sulfate of potash (SOP) over a 23-year period. Yara Dallol has additional resources to either expand annual production or increase the life of the project, as new market segments for SOP are developed.

Yara Dallol aims to begin mining activities by the end of 2018. The independent feasibility study estimated the capital expenditure of the project at $740 million and cash cost at $167/mt delivered (fob) Djibouti, among the lowest in the industry.

K+S Group said that as of Dec. 1 production at the Hattorf (Hersfeld-Rotenburg district) and Unterbreizbach (Wartburg district) sites will have to be suspended for the time being. K+S says until the Kassel Regional Council acts on its request to inject saline wastewater into the ground, that the only disposal site for the Werra plant is the Werra River.
 
The Council is currently working on a transitional solution that would enable a continuation of injection in a few weeks after a detailed technical assessment has been completed.

In order to bridge the period before a decision is made by the Council on the transitional regulation of injection, plant management and employee representatives have agreed that around 1,750 affected employees will work off their work hour accounts and remaining vacation.

As things stand, K+S does not anticipate any impact on deliveries to customers except in isolated cases. K+S said the expected EBIT I for the K+S Group of EUR 780 million to EUR 830 million for 2015 will probably also not be affected by this.

CHS Inc. Inc. earnings for fiscal 2015 (Sept. 1, 2014 – Aug. 31, 2015) were $781 million down 28 percent from more than $1.1 billion for fiscal 2014, reflecting singular events as well as lower margins across CHS energy and agriculture businesses. Revenues for the year were $34.6 billion, down 19 percent from $42.7 billion for fiscal 2014, primarily due to lower values for the commodity energy and grains products it handles.

"Our core businesses of agriculture and energy have entered a global down cycle which affected both earnings and revenues for fiscal 2015," said Carl Casale, president and CEO.  "Nonetheless, we continue to fulfill our commitment to our owners by making significant investments in the future of our businesses; providing direct economic returns and maintaining a strong financial foundation for the future."

CHS Ag segment earnings for fiscal 2015 also declined overall, driven primarily by a $116.5 million impairment associated with the decision to cease development of a nitrogen fertilizer plant at Spiritwood, N.D. Ag earnings were $149.6 million down from $213.4 million. In addition, grain marketing earnings decreased primarily as a result of robust logistical performance in fiscal 2014 which did not reoccur in fiscal 2015, as well as growth-related expenses and foreign exchange losses which were partially offset by increased margins. Within the company’s Country Operations local retail, animal nutrition and sunflower businesses, earnings declined due to lower retail agronomy margins and growth expenses, but were partially offset by higher grain volumes and margins. CHS wholesale crop nutrients earnings increased in fiscal 2015 compared to fiscal 2014 due to increased margins partially offset by decreased volumes.

In fiscal 2015, based on fiscal 2014 earnings, CHS returned $533.8 million to its owners in cash patronage, equity redemptions, preferred stock and dividends on preferred stock to its owners.

CF Industries Holdings Inc. and OCI NV today announced that both companies remain fully committed to pursuing a combination of CF with OCI’s European, North American and global distribution businesses due to its strong industrial logic, significant expected synergies and value creation potential for shareholders.

The companies are jointly evaluating options to address the impact of the notice by the U.S. Department of the Treasury, issued on Nov. 19 on the previously-announced combination. This evaluation includes exploring alternative structures for the combination, such as using a parent company in The Netherlands rather than one in the United Kingdom, to accommodate the requirements of the Treasury notice. Any agreement with respect to such new structure will require the approval of each company’s board of directors and shareholders.

Indian Potash Ltd. issued its much-anticipated urea tender Monday, Nov. 23. The tender will close Saturday, Nov. 28. The offers must include validity through Dec. 12 with shipping done by January 6, 2016. The tender calls for prilled or granular urea for delivery to any Indian port. In the run up to the announcement, industry sources said IPL will most likely try to take 1 million tons to close out the urea buying season for the country. In addition, traders speculated offering prices could be flat when compared to the recent STC tender.

China has begun an antitrust investigation into Russian potash producer Uralkali, Bloomberg reported on Nov. 10. The investigation comes just a month before China and Uralkali are set to negotiation new potash supply contracts for 2016.
 
Russia’s Economy Minister Alexei Ulyukayev said he hopes China’s decision in the case will be fair and the issue resolved, according to news reports. Some analysts said that the probe could have been initiated to push for lower prices. Uralkali had no comment, but the company’s marketing director, Vladislav Lyan, confirmed that Uralkali expects to start supply talks in December.

BCS Financial Group analyst Oleg Petropavlovskiy said that the effect of any Chinese fine – possibly as much as $70 million – would be "negligible" given Uralkali’s expected $2 billion in earnings before interest, taxes, depreciation and amortization. Uralkali’s shipments of potash to China totaled about 2.3 million tons last year, BCS said.

Uralkali recently confirmed that it is thinking about cutting fourth-quarter potash sales. "We are carefully monitoring the development of the situation on the market and we are now considering the possibility of reducing the sales target for the fourth quarter by about 300,000 mt," Lyan told Bloomberg on Nov. 5.

Israel’s Knesset Finance Committee has approved the recommendations of a government-appointed committee on raising taxes on natural resources. The recommendations will primarily impact Israel Chemicals Ltd. ICL had mounted a campaign against the recommendations and has threated to halt investments in Israel. Israeli Prime Minister Benjamin Netanyahu had hoped to modify the recommendations and reduce their impact on ICL. However, Finance Minister Moshe Kahlon was opposed and the committee backed him.

The committee voted unanimously in favor of the recommendations of the committee headed by Professor Eitan Sheshinski. The law will impose a 25 percent windfall profits tax over and above a 14 percent return on investments.  The rate will rise to as much as 42 percent on returns of 20 percent or higher. The law also sets a 5 percent uniform royalty payment on all natural resources. ICL has said the new law will cost the company $110 million starting in 2017.  However, that figure is based on much higher potash prices. Industry experts say that the tax is likely to be substantially lower at current potash price levels. The committee approved a proposal that all funds from the surtax and royalties go to finance the creation of new jobs in Israel’s southern Negev region.

ICL Board Chairman Nir Gilad called it a bad day for the Negev. ICL has also warned that it will take legal action against the law and take the matter to Israel’s Supreme Court.

Meanwhile, Israel’s Finance Ministry is continuing to bicker with ICL over payment of past royalties on potash and downstream fertilizer production. The Finance Ministry said ICL owes an additional $60 to $120 million in back taxes specifically the linkage on royalties due on profits the company has earned dating back to 2000. The ongoing dispute follows the ruling by an arbitration panel that last year ruled ICL owed royalties not just on profits, but also on mining and extraction operations and on downstream production. ICL estimated its back royalties at $152 million and paid the sum along with an additional $7.5 million owed for the past two years.  

Uralkali is thinking about cutting fourth-quarter potash sales. "We are carefully monitoring the development of the situation on the market and we are now considering the possibility of reducing the sales target for the fourth quarter by about 300,000 mt," Vladislav Lyan, Uralkali marketing director, said Nov. 5, in response to a question from Bloomberg. He declined to give the current sales target.