PMI, a subsidiary of state-owned oil company Petroleos Mexicanos, (Pemex) signed a contract for the purchase of the assets of the company Nitrogenous Agro SA de CV, and plans to restart 990,000 mt/y of urea production in the Gulf Coast state of Veracruz as early as 2015. The project involves an investment of up to $ 475 million, including the purchase of existing assets, as well as rehabilitation and renovation of the plant. Pemex said the expected production of urea accounts for about 75 percent of current national demand. Pemex says the production could replace some $400 million per year in fertilizer imports. However, Pemex said it also seeks to reconstitute the domestic market of this industry and direct the product toward the lower- level of economic development in the country, located in the southeast region of the country. Ammonia will be supplied by Pemex Petrochemical Complex, located in Cosoleacaque, Veracruz, just 28 kilometers from Agro Nitrogenous facilities. Lower priced natural gas from the U.S. is expected to make the production more economical as a new pipeline will bring product from Texas into central Mexico.

CF Industries Holdings Inc. today announced that it has been notified that the U.S. Department of Justice has closed its review and terminated the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act relating to the company’s $1.4 billion sale of its phosphate business to the Mosaic Co. The closing of the transaction is subject to various additional conditions, including approvals under applicable foreign antitrust laws, receipt of other governmental and third party consents and other customary closing conditions.

CF and Mosaic announced on Oct. 28, 2013 that they had entered into a set of definitive agreements including the proposed transaction, a long-term agreement under which the company will supply Mosaic with ammonia from its Donaldsonville, La., nitrogen complex, and an agreement to provide ammonia to Mosaic from the company’s Point Lisas Nitrogen Ltd. (PLNL) joint venture beginning at the close of the phosphate sale.

Intrepid Potash Inc. on Jan. 14 announced a number of cost-savings initiatives, including the elimination of approximately 7 percent of its workforce, to “better align its cost structure” due to declining potash prices since mid-2013 and the conclusion of major capital projects.

Denver-based Intrepid announced other cost-saving measures as well, including decreases in executive compensation, a reduction in the use of outside professionals, and cutbacks in other general and administrative expenses. The company said the workforce reduction includes support staff related to its various capital projects, which are nearly complete.

“These are difficult, but necessary decisions. The changes we have made better position Intrepid in today’s market environment and enhance our long-term competitiveness,” said Dave Honeyfield, Intrepid’s president and Chief Financial Officer. “We have taken a thoughtful approach to ensure that we are balancing the current market environment with what we see as a healthy long-term business model with a continued commitment to safe operations. We are treating those impacted by these changes with the respect and fairness they deserve, while creating value for our shareholders by running Intrepid as efficiently as possible.”

Intrepid gave no specifics on the number of employees affected by the decision. It said the workforce reduction is expected to result in a first-quarter 2014 pre-tax charge of approximately $1.5-$2.0 million. Intrepid estimates saving approximately $15 million annually from these initiatives, with the majority being in general and administrative expense and the remainder being cost of goods sold.

Intrepid’s announcement follows a similarly one by PotashCorp of Saskatchewan Inc. in early December (GM Dec. 9, 2013), when PotashCorp announced that it was slashing its workforce by approximately 18 percent, closing several facilities in its potash and phosphate businesses, and scaling back production at others due to sluggish demand and a “challenging market environment.”

Several analysts at the time said they expected other potash producers to follow PotashCorp’s lead, citing the drop in potash demand and prices that followed this summer’s decision by Russian producer OAO Uralkali to withdraw from Belarusian Potash Co. (BPC) and pursue a volumes-over-price global marketing strategy (GM Aug. 5, 2013).

Intrepid is the largest producer of potash in the U.S., with six active production facilities in New Mexico and Utah that produce approximately 870,000 tons of potash and 200,000 tons of langbeinite annually. In addition to potash, Intrepid also produces and markets Trio®, a specialty fertilizer that combines potassium, magnesium, and sulfur in a single particle.

Intrepid’s major capital projects include the newly commission HB Solar Solution mine 20 miles northeast of Carlsbad, N.M.; a new compaction plant at its North Plant in Utah; additional solution mining opportunities at its Moab, Utah, facility; and a Langbeinite Recovery Improvement Project to add granulation capacity to its Trio production stream.

The Board of Yara International ASA reported on Jan. 15 that it has informed the Norwegian National Authority for Investigation and Prosecution of Economic and Environmental Crime (Økokrim) that the company acknowledges guilt and accepts a corporate fine and confiscation totalling NOK 295 million related to certain agreements dating back to 2007 and earlier.

Oslo-based Yara said the fine of NOK 270 million stems from historical irregularities linked to the establishment of Libyan Norwegian Fertilizer Co. (Lifeco), an unrealized project in India, and Yara’s activities in Switzerland. In addition, Økokrim has imposed a confiscation of NOK 25 million related to earlier phosphate deliveries.

“This is a serious case. Both the company’s external investigation and the Økokrim investigation have uncovered unacceptable and disappointing behaviour. We have throughout the process cooperated with Økokrim and given them access to all material," said Jørgen Ole Haslestad, Yara president and CEO. “The incidents in question took place several years ago. We have since invested considerably in our compliance processes, based on our clear zero tolerance for corruption. Most importantly, we have worked with culture and attitudes to ensure that such incidents do not occur in the future.”

Yara launched an external investigation in April 2011, and concurrently notified Økokrim of possible irregularities 2011 (GM April 18, 2011). The main findings of the external investigation, published in June 2012 (GM July 2, 2012), included documented unacceptable offers of payment to a consultant related to the establishment of Lifeco, although the completion of the actual payment was not documented; an unacceptable payment of US$1 million in 2007 to a consultant in India related to negotiations with Krishak Bharati Cooperative Ltd. (Kribhco); and a number of payments over several years from the company Balderton in Switzerland, totaling approximately $15 million, that were made to persons employed by or associated with companies that are suppliers to Yara or Balderton. Payments from Balderton that had no commercial basis were also uncovered by the investigation.

Økokrim in May 2012 (GM May 21, 2012) charged two members of Yara’s corporate executive management team – Head of Upstream Tor Holba and CFO and Head of Strategy Hallgeir Storvik – with suspicion of “gross corruption” related to the findings of its investigation. Holba and Storvik subsequently stepped down from their executive management positions at the company as the investigation continued.

“Our acknowledgement of guilt and acceptance of a fine reflect that the Økokrim findings are in line with those of our own investigation,” said Bernt Reitan, chairman of the board of Yara. “The penalty is severe, but we accept it.”

As expected, all major players have concluded new business at Tampa for the first quarter at $110/lt, up $35/lt from the fourth-quarter’s $75/lt.

The Beer Sheba Regional Labor Court has ordered Rotem Amfert workers to return to work and halt all sanctions against Israel Chemicals (ICL), and for management to withdraw all dismissal notices.

The judge instructed the parties to return to the negotiating table and report back to him later this week regarding progress in the talks. ICL management has sent out 10 dismissal notices so far and plans to fire 127 workers as part of its recovery plan for the subsidiary.

The workers imposed sanctions late last week after negotiations broke down between the two sides over a competing plan proposed by the Histadrut Labor Federation involving early retirement with a generous package of benefits instead of layoffs.

On Jan. 13, the Histadrut approved the declaration of a work dispute at Dead Sea Works, another ICL subsidiary. The union at that company joined for the first time the dispute of other ICL subsidiaries against ICL management’s recovery plan.

Pinnacle Agriculture Holdings LLC reported on Jan. 13 that it has successfully acquired Federer Fertilizer Inc., located in Cullman, Ala. Federer will operate as part of Pinnacle’s Sanders brand, and will be managed by Greg Federer, former Federer owner.

Federer’s relationship with Sanders goes back four years, when it became a wholesale customer of Jimmy Sanders Inc., headquartered in Cleveland, Miss., which formed a strategic partnership with Pinnacle in 2012. The current employees of Federer will retain their positions under the new Sanders ownership.

“Sanders is very pleased with the recent acquisition of this well-respected business, and welcomes its staff to our family,” said Cole Gholston, area operations manager. “We have enjoyed an excellent working relationship with Federer Fertilizer for several years, and we are confident that the farmers it served so well will experience a smooth transition and continue to receive efficient, competitive and timely service.”

Federer was founded in 2004 as a full-service farm supply operation, providing seed, fertilizer, and crop protection chemicals, as well as various hardware and livestock supplies to local growers. The Federer facility in Cullman is located at 2471 County Road 222, and becomes Sanders’ third retail facility in the area, joining existing Sanders locations in Town Creek and Belle Mina, Ala.

Under Sanders ownership, the Federer facility will offer custom fertilizer blends, seed and crop protection products, and precision agriculture services through Sanders’ proprietary OptiGro system. The facility will also continue to supply a wide variety of hardware and livestock products to customers.

“Much like our business, Sanders is a very family-oriented company,” said Melba Federer, co-owner of Federer. “Other than new Sanders branding and signage, customers shouldn’t notice much of a change at all in our operation. We will be able to provide more variety in the inventory and also offer better prices. This should be a good opportunity for our customers and for us.”

The J.R. Simplot Co. has approved preliminary engineering and permitting for an anhydrous ammonia production plant next to the Simplot Phosphates Fertilizer Complex south of Rock Springs, Wyo., as part of a $170 million expansion at the complex. Two Simplot officials explained the proposed ammonia project to the Rock Springs City Council on Tuesday, Jan. 7.

The new ammonia plant would allow Simplot to produce ammonia instead of importing it by rail, using natural gas as both a feedstock and fuel. About 18,000 tons of ammonia would be stored onsite at atmospheric pressure. Lower natural gas costs make constructing an ammonia plant economically feasible.

Darin Howe, Simplot environmental, health and security manager, told the Rock Springs City Council that the ammonia plant would not expand the complex’s fertilizer production capacity. He said it may require an extra natural gas line, but would not require substantial additional water service.