All Posts from October 12, 2018

EuroChem Opens Crystalline Urea Phosphate Plant in Lithuania

News Briefs, Phosphate, Urea

EuroChem Group AG, Zug, Switzerland, on Oct. 12 formally opened a new €14 million ($16 million) plant with capacity for the production 25,000 mt/y of crystalline urea phosphate at its Lifosa subsidiary in Kėdainiai, Lithuania. Crystalline urea phosphate is a soluble, chlorine-free fertilizer that contains no heavy metals and is suitable for use on various soils. As it is soluble in water, it can easily be applied by a sprinkler and provides plants with the necessary nitrogen and phosphorous nutrients needed for growth, EuroChem said.

Test production of crystalline urea phosphate began in September, and the plant will ramp up to full production by the end of the year

“This new facility will further strengthen Lifosa’s position in the global fertilizer market,” said AB Lifosa General Manager Jonas Dastikas. Lifosa’s existing product range includes DAP and water-soluble crystal MAP.

Encanto Potash Corp. – Management Brief

Canada, Management Briefs

Junior miner Encanto Potash Corp., Toronto, announced on Oct. 5 that Richard Lively, who was named chief operating officer in July (GM July 13, p. 24), has left the company.

At the time of his appointment, Encanto said he would work toward analyzing the potential of lowering Capex, creating efficiency in Opex with a goal of reducing the construction costs and strategically optimizing transportation costs, and maintaining reasonable engineering costs. Encanto said it will continue its efforts to reduce projected Capex cost and achieve enhanced operational efficiencies.

Solvay SA – Management Brief

Europe, Management Briefs, Specialty

Brussels-based advanced materials and specialty chemicals company Solvay SA has appointed lham Kadri as its new CEO, chairman of the executive committee, and member of the board of directors, effective March 1, 2019. She will join Solvay on Jan. 1, 2019, and will spend two months transitioning with the incumbent CEO, Jean-Pierre Clamadieu, before taking up the leadership role and continuing Solvay’s transformation.

Kadri is currently president and CEO of U.S.-headquartered Diversey, a global leader in hygiene, cleaning solutions, food safety, and infection prevention, and since 2016 owned by Bain Capital. During her 22-year career, she has held diverse positions at multinationals including Shell-Basell, UCB-Cytec, Huntsman Corp., Rohm Haas-Dow Chemical, and Sealed Air Corp.

Solvay accelerated its succession plan for a new CEO in February following French energy and services group Engie’s decision to propose Clamadieu as its chairman. He was appointed chairman of Engie in May.

Encanto Reports Private Placement of Convertible Debentures

Canada, News, News Briefs

Junior miner Encanto Potash Corp., Toronto, said on Oct. 4 that it will complete a private placement of convertible debentures for gross proceeds of C$9,505,200. The offering will discharge and replace a portion of the principal owing under the company’s previous convertible debentures that matured on Sept. 1, 2017, which are due and payable, as well as to offset other outstanding payables.

The debentures will be secured by a charge over all of the company’s assets, will bear interest at the rate of 5 percent per annum, and will mature 18 months from date of issue. The debentures will be convertible into common shares at the option of the holders at any time on or before the maturity date at a price of $0.25 per share.

Hamad M. Al-Wazzan, an insider of the company, has agreed to purchase $4.25 million in the offering. Horgen Holdings Inc. has agreed to purchase $5 million, and will become an insider on a partially diluted basis pursuant to the private placement.

Australian Potash Inks JV with Gold Explorer; Government to Improve Roads

Australia, News, News Briefs, Potash, Specialty

Junior Sulfate of Potash (SOP) producer Australian Potash Ltd. (APC), West Perth, Western Australia, said on Oct. 8 that it has entered into an earn-in and joint venture agreement with St. Barbara Ltd. (SBM), Melbourne, covering the tenure of the Lake Wells Gold Project. SMB will pay APC A$1.25 million cash consideration for entering the agreement, and a minimum exploration spend of $1.75 million during the initial 12-month earn-in period.

After the first year of the earn-in period, SBM can elect to earn a 70 percent interest in the tenements by spending a further $3.5 million over a 24-month jv period on exploration, and reimburse APC up to $500,000 in costs previously spent on exploration at Lake Wells. In total, SBM’s expenditure to earn a 70 percent stake is $7 million.

APC’s 30 percent interest will be free-carried to the completion of a bankable feasibility study, following which industry standard contribution and dilution clauses apply.

APC will retain 100 percent of all potash mineral rights. “The strategic intent of the board of APC is to focus on the completion of the definitive feasibility study into the development of the Lake Wells SOP Project,” said APC Managing Director Matt Shackleton. “At the same time, however, we have always been very aware of the inherent value of the Lake Wells Gold Project.

“We are looking forward to building our relationship with the St. Barbara team,” he added. “I am confident that we now have the right people, right companies, and right project area in place to generate some significant success at what is one of the state’s very prospective and important mineral regions.”

SBM said its deal with APC is in line with its strategy of targeted investments in early to advanced stage exploration through earn-in arrangements, jvs, or direct equity investments. This includes other Australian explorers, including Catalyst Metals Ltd., Duketon Mining Ltd., Peel Mining Ltd., and Prodigy Gold NL.

In other APC news, the company announced on Oct. 5 that it will benefit from an A$35 million planned federal and state funding for the upgrade of a 100-kilometer section of the Great Central Road between Lake Wells and Laverton. The project is to commence in January 2019 and will replace some 70 kilometers of unsealed road with high-grade sealed road.

In addition, APC and Laverton have agreed to scope the feasibility of sealing the Lake Wells access road, which would make the Lake Wells SOP Project’s logistics solution a 300-kilometer all-weather bitumen sealed road to the Leonora rail-head.

Former AkzoNobel Specialty Chemicals Changes Name to Nouryon

News, News Briefs, Specialty

The former AkzoNobel Specialty Chemicals business on Oct. 9 was re-launched as Nouryon. The move follows the recent closing of the acquisition of the business by U.S. private equity firm Carlyle Group, Washington, D.C., and Singapore’s GIC (GM Oct. 5, p. 28).

As previously reported, Charles Shaver, CEO of the Specialty Chemicals business when it was part of Akzo Nobel N.V., Amsterdam, retains the role under the new ownership (GM Oct. 5, p. 28). The new company will continue to be headquartered in Amsterdam.

“As an independent company, we can accelerate our progress on all fronts and take our rightful place alongside other industry leaders,” said Shaver. “Nouryon will be working closely with customers and other partners to innovate, make strategic investments, and develop essential, sustainable solutions that meet customer needs and fuel shared growth.”

The business changed hands for an enterprise value of €10.1 billion (approximately US$11.7 billion). Under Akzo Nobel NV, it reported a full-year 2017 EBIT of €689 million on revenues of €4,985 million (reported as discontinued operations), marking year-on-year increases of 10 and 4 percent, respectively.

Grupa Azoty Receives Compo Expert Takeover Approvals

Europe, News, News Briefs, Specialty

Grupa Azoty SA, Tarnów, has secured the green light from its shareholders to take over German specialty fertilizer and biostimulant manufacturer Compo Expert Group’s controlling company, Germanys’ Goat TopCo GmbH, the company said in a market filing. The Polish fertilizers and chemicals group earlier in the week also received the okay from Austrian antitrust authorities for its takeover of Compo Expert Group, according to a filing by Goat TopCo.

Grupa Azoty reached an agreement in early September with Goat Netherlands BV, an entity of London-headquartered private equity firm XIO Group for the acquisition of 100 percent of the shares of Goat TopCo for not higher than €235 million (approximately $270 million) (GM Sept.7, p. 1).

Compo Expert operates key production assets in Krefeld, Germany, and Vall d’Uixó, Spain, and Austria is among the countries where its products are sold.

PKN Orlen Takes Full Ownership of Czech’s Unipetrol

Eastern Europe, News, News Briefs

Polish oil refiner and petrol retailer PKN Orlen SA said last week it had closed a transaction to buy all of the remaining shares in its Czech subsidiary Unipetrol from minority shareholders. As of Oct. 1, PKN Orlen had taken full ownership of Unipetrol shares.

The Polish group secured clearance from the Czech National Bank in May for the purchase of all Unipetrol shares held by minority shareholders, representing approximately 5.97 percent of the Czech company’s share capital, at a proposed price of CZK380 per share (GM May 25, p. 31).

PKN Orlen already owned 94.03 percent of Unipetrol prior to the buyout, having increased its equity interest from 62.9 percent this past March after launching a voluntary offer for additional shares in the Czech company last December (GM March 2, p. 31; Dec. 15, 2017).

Unipetrol is the largest refining and petrochemical group in the Czech Republic. Its core asset is its Litvínov petrochemical operations – now the construction site for a new 270,000 mt/y polyethylene unit. The company produces ammonia at the Litvínov site.

It is also the sole manufacturer of PVC and caprolactam on the Czech market through a wholly owned subsidiary, Spolana as, acquired in June 2016. Spolana late last year indicated its plans to also start selling granular ammonium sulfate (AS) for agricultural use (GM Dec. 22, 2017).

Jacobs Receives Sirius EPC Contract

News, News Briefs, Specialty

Jacobs Engineering Group Inc., Dallas, said Oct. 11 that it has received an engineering, procurement and construction (EPC) contract from Sirius Minerals PLC, Scarborough, England, for its new materials handling facility (MHF) in Teesside, England. The MHF is being constructed as part of the company’s North Yorkshire Polyhalite Project.

“As the EPC provider for Sirius Minerals’ materials handling facility, Jacobs is delivering more than a full life cycle solution on this project—we’re delivering a facility that is scalable and able to support changing agriculture needs,” said Jacobs Mining, Minerals and Technology Senior Vice President and General Manager Andrew Berryman. “From the run of mine stockpile to the final product loadout, the materials handling facility will contribute to local and global food supply.”

Jacobs is designing the MHF to handle 7 million mt/y of granulated product in its first phase of development, with expansion considerations being developed into the design to support up to 20 million mt/y. In addition, the facility will also handle 3 million mt/y of coarse product.

“Securing a partnership with a company the calibre of Jacobs is great for us and a testament to the world-class nature of this project,” said Sirius Minerals Chief Development Officer Simon Carter. “Their knowledge of EPC projects in the mining sector is hugely valuable, as is their experience of construction projects on Teesside.”

K+S Receives Hattorf Expansion Permit

News, News Briefs, Potash

K+S Group, Kassel, reported on Oct. 11 that the Kassel regional council has approved the expansion of the Hattorf (Philippsthal) tailings pile. As a result, K+S said the disposal of solid production residues, which is an important requirement for producing potash at this site, has been ensured.

“The granted permit now provides the employees of the site, but also the entire company, a good deal of future security,” said K+S CEO Dr. Burkhard Lohr. “After seven years of intensive work, it brings us one step closer to our goal of being able to use our full capacity for processing crude salt without restrictions caused by disposal bottlenecks. I am confident that we are on the right track regarding our wastewater disposal issues.”

The granted permit covers an area of approximately 27 hectares, which is an expansion of the northwestern part of the existing pile. It provides enough space for five to six years. In addition, the official review of the application for the second phase of the pile extension, which would provide enough space until the early 2040s, is already in progress.

Filling can be started soon because the preparation of the expansion area had already begun with an early approval at the beginning of 2018. This had made it possible, within the scope of the pile concept, to get the extensive preparatory work done, which included sealing the base and installing a conveyor belt system. This preparatory work now allows for a continuous production without interruption.

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