CHS Inc. along with the City of Shelby, Toole County and the Port Authority of Northern Montana announced July 9 that CHS broke ground on construction of a 42,000 st fertilizer plant outside Shelby, Mont. The new facility, with 160-car shuttle loader access to the BNSF line, is expected to open in early spring 2014 and serve producers in the north central Montana and southern Alberta, Canada, regions.

“Geographically, this area has sometimes been challenging to service,” said Ross Thayer, general manager of the CHS Cut Bank-Shelby region. “This new plant will mean a more consistent supply to our current customers and a broader reach to new customers. With tremendous support from our patrons as well as the City, County and Port Authority, this is one more way we can bring the global connections of CHS to help our owners and customers grow.”

“This is great news for northern Montana,” said Larry Bonderud, mayor, City of Shelby. “CHS has had a positive presence in our community for decades and we sincerely appreciate the investment it is making for the future of our business environment. We look forward to the continued commitment of CHS in our region.”

CF Industries Holdings Inc. today reported that it is in the process of restarting operating units at its Medicine Hat, Alberta, nitrogen complex. The company had shut down production at the complex as a precautionary measure June 23. The site on which the complex is located is approximately 200 feet above the normal river level. However, the pump house containing equipment used to draw river water for plant operations is near the river bank. The pump house equipment that had been relocated to higher ground prior to the flooding has been reinstalled and is back in service.

"We have determined that it is safe to restart our operating units and are doing so. We are in contact with our customers regarding the status of deliveries from the facility," commented Tony Will, CF senior vice president, manufacturing and distribution. “Our thoughts are with those in the community who were impacted by the flooding.”

LSB Industries Inc. announced today its El Dorado Nitrogen LP subsidiary, has signed a seven-year extension with Bayer MaterialScience LLC to supply Bayer with its requirement of nitric acid. This agreement amends the previous agreement. Under the extended agreement, which is effective as of July 1, 2014, EDNLP continues to charge Bayer for nitric acid on a cost plus basis.

“EDNLP has enjoyed a mutually beneficial working relationship with Bayer since 1998, and we look forward to continuing this relationship under the new extended agreement,” said Jack Golsen, LSB chairman and CEO.

The Mosaic Co. has provided an update today on the potential disposition of the 129 million Class A restricted shares held by the Margaret A. Cargill Foundation, the Anne Ray Charitable Trust (collectively, the MAC Trusts), and various family shareholders of Cargill, Incorporated (Cargill).

The two-year anniversary of the transaction resulting in the split-off of Mosaic from Cargill was May 25, 2013. Since that date, Mosaic has engaged in discussions with Cargill and the MAC Trusts regarding the disposition of the Class A shares, including a potential share repurchase transaction. In connection with these discussions, Mosaic, with the MAC Trusts’ support, requested that Cargill amend the split-off agreement to allow for a negotiated repurchase of shares by Mosaic from the Class A shareholders prior to November 26, 2013. Following that date, no contractual restrictions remain on share repurchases.

After considering the request, Cargill declined to amend the agreement to allow for earlier share repurchases. As a result, Mosaic is not permitted to engage in open market or negotiated share repurchases until after Nov. 26, 2013. The only practical means for the Class A shareholders to dispose of their shares prior to that date would be through an underwritten public secondary offering, which could be initiated by the MAC Trusts prior to June 26, 2013 or Mosaic thereafter. After considering its alternatives, the MAC Trusts have notified Mosaic that they will not exercise their current right to request an underwritten public secondary offering.

Mosaic is disappointed in its inability to effect share repurchases this summer and looks forward to initiating share repurchases after Nov. 26, 2013. At that time, depending on market conditions and sellers’ interest, Mosaic will consider the repurchase of shares either in a negotiated transaction with the Class A shareholders or through open market repurchases.

Mosaic continues to target the middle of 2014 to achieve its previously stated balance sheet targets.

Major players have concluded Tampa ammonia business at $525/mt CFR, down some $40/mt from June. Based on recent trades in the Yuzhnyy, a large drop was expected.

A 67-year old employee was killed in an explosion Monday, June 24 at the Co-Alliance Co-op in Union Mills, Ind. While initial reports indicated that the explosion was fertilizer-related, later reports were that occurred in a grain bin.