All Posts from January 14, 2013

Helena acquires, updates Indiana plants

News, News Briefs

Shelbyville, Ind. — Helena Chemical Co. has acquired two new fertilizer producing plants in Shelbyville and Carthage in a $3 million expansion of the company’s fertilizer operations to serve farmers in Shelby, Rush, Johnson, Henry, Decatur, and Hancock counties. Up to 20 people will be employed at the two sites. Construction is scheduled to begin this month on new offices at Shelbyville, where company sources say liquid fertilizer and chemical storage buildings are in place. The Carthage site, where work is nearly completed, will have a new dry fertilizer storage building and offices. The Shelbyville location will be branch headquarters, while Carthage will function as the satellite location. To spread the word about the change in owners, Helena will have an open house on Jan. 15 and 16 from 11 a.m. to 2 p.m. at the Carthage dry fertilizer facility. Lunch will be served both days. On Jan. 17 from 6 to 8:30 p.m., Helena will hold a customer appreciation dinner and presentation at Grand Casino/Indiana Downs in Shelbyville.

Compass Minerals – Management Brief

Management Briefs

Compass Minerals, Overland Park, Kan., has announced that Francis J. Malecha, 48, will become its new president and CEO on Jan. 17, 2013, and will be appointed to its board of directors. He joins Compass Minerals with more than 25 years of experience in agri-business. Most recently, he had been chief operating officer-grain of Viterra Inc., the $7.0 billion global agri-business company. He joined Viterra in 2000, where his responsibilities included global grain merchandising, transportation, operations, commodity risk management, and international merger and acquisition activity. Viterra was acquired by Glencore International plc in December 2012, and Malecha was named head of agricultural products for North America.

“I am thrilled to take the helm at Compass Minerals,” said Malecha. “The company has an exceptional salt franchise, a strong niche in specialty fertilizers, and the cash flow generation to power opportunities for further profitable growth.”

Richard Grant of the Compass Minerals board of directors noted, “We are delighted to have someone with Fran’s leadership capabilities and expertise step into this role. His experience in Canada, the United States, and globally demonstrates skills very relevant to Compass Minerals in realizing the potential across our portfolio.”

From 1986-2000, Malecha had a career of increasing responsibility with General Mills Inc. in financial and merchandising-management roles. He holds a bachelor’s degree in accounting from the University of St. Thomas.

Malecha succeeds Dr. Angelo Brisimitzakis, who announced his plans to retire last fall (GM Oct. 8, 2012, p. 10) after seven years leading the company.

The Fertilizer Institute – Management Brief

Management Briefs

Ford B. West, president of The Fertilizer Institute, announced on Jan. 7 that he will retire from his position effective December 2013. West joined TFI on Nov. 1, 1979, and has served as its president since Sept. 6, 2005.

In a memo to TFI members, West said it been “an honor to represent the fertilizer industry over the past 33 years,” and a pleasure to work with “many great people” to inform government institutions, the media, and the general public of the vital role that fertilizer plays in world food production.

West, who turns 66 this year, rose through the ranks at TFI, first serving as director of member services before being promoted to assistant vice president in 1982, vice president of government relations in 1984, and senior vice president in 1999.

“I thank those who took the time to mentor me and help me to appreciate the difference between ‘dirt and soil,’ to understand the science involved in the production and use of fertilizer, and to appreciate the historical role and contribution of fertilizer to the food chain,” West said. “Fertilizer touches many hands before it arrives in farm fields, and TFI provides a forum where fertilizer producers, importers, wholesalers, and retailers can share their perspectives on common problems and develop approaches to meet these challenges. I am very proud to have been a part of that process.”

West also expressed gratitude to the staff at TFI and the Nutrients for Life Foundation. “Any success I have had as president is due to a combined effort of these association professionals working together for the good of the industry,” he said.

TFI’s board of directors has established a presidential search committee comprised of five executive committee members who will operate under the leadership of TFI Board Chairman Jim Prokopanko. The committee held its first meeting in late December in Chicago. Spencer Stuart, one of the world’s leading executive search consulting firms, has been retained to assist the search committee in the candidate selection process.

Union heads lead merger opposition

News, News Briefs

Tel Aviv — The heads of the Dead Sea Works (DSW) union continue to lobby against the proposed Potash Corp. of Saskatchewan Inc. and Israel Chemicals Ltd. (ICL) link up. Union leaders have stepped up the pressure to prevent a deal. Recently, two senior union members – who are also activists in the ruling Likud party – met with Israeli Prime Minister Benjamin Netanyahu. Union sources said that Netanyahu did not say specifically that he opposed the deal, but stressed that it was not under consideration at this time. The sources reported that the prime minister said that he is well aware of the significance of any such deal on the fate of Israel’s natural resources and the company’s workers. Last month the DSW union declared a work dispute – a move that would enable the workers to impose sanctions. The union is demanding that ICL management brief the union on contacts with PotashCorp, and is taking an increasingly militant stand on the proposed sale of ICL to PotashCorp. The union says any such sale would be an economic disaster for the southern Negev region and for 5,000 families who work for the company. They charged that the sale of ICL to “foreign hands would be akin to giving up on part of the country.” They stressed that they represent the ICL workers as well as 20-25,000 families who indirectly earn their livelihood from ICL. The Israeli government holds a golden share in the company since it was privatized back in the mid-1990s, making any deal subject to the approval of the state. No decision on the possible merger is expected before the Jan. 22 elections due to the highly controversial nature of the sale. The negotiations with PotashCorp are expected to resume after a new government is formed, which will probably not be before mid-February at the earliest.

Indian company invests in Karnalyte K project

News, News Briefs

Okotoks, Alberta — India’s Gujarat State Fertilizers & Chemicals Ltd. will make a strategic investment of approximately C$45-million in Karnalyte Resources Inc. at a price of $8.15 per common share, which will result in GSFC holding a 19.98 percent ownership stake in Karnalyte. Karnalyte and GSFC have agreed to a committed off-take agreement for the purchase of approximately 350,000 mt/y of potash from phase 1 of Karnalyte’s Wynyard carnallite project, increasing to 600,000 mt/y with the commencement of phase 2. The off-take agreement will continue for approximately 20 years from the commencement of commercial production of phase 1. GSFC shall have the right to appoint one nominee to the board of directors of Karnalyte. GSFC retains the right to maintain its equity position in future equity offerings and has agreed to commit approximately $15 million in the next rounds of public equity financing by Karnalyte to finance the construction of phase 1 of the project. Using a staged approached to potash plant construction, Karnalyte plans to operate a solution mining facility that will initially produce 625,000 mt/y, increasing to 2.125 million mt/y. Karnalyte owns a 100 percent interest in Subsurface Permit KP 360A and Subsurface Mineral Lease KLSA-010 located near Wynyard, Sask., comprising a total of 85,126 acres. Karnalyte is listed on the Toronto Stock Exchange under the symbol KRN.

BioNitrogen acquires site for N plant

News, News Briefs

Doral, Fla. — BioNitrogen Corp. said Jan. 8 that it has acquired approximately 600 acres of land in Hardee County, Fla., for $9.7 million for the site of its planned biomass-to-urea plant. The total acreage includes the 40 acres of land BioNitrogen acquired previously in September 2012. Payment for the land is comprised of an $8 million mortgage note and $1.7 million in common stock warrants. The company said this is the only large, contiguous parcel in the area with direct access to a railroad via a new rail spur, and has access to deep water ports in the Tampa area less than 70 miles away. The property is also located near an underutilized highway, which also has access to Tampa’s ports. The company said work will begin immediately on accumulating biomass and on rezoning and permitting the additional land for the company’s expansion plans. The seller of the land, E.L. Davis Jr., was the owner of the initial 40-acre parcel. “We are very excited to have secured this important property,” said Bryan Kornegay Jr., CFO of BioNitrogen. “This contiguous 600-acre parcel is the only one of its kind in the area and provides ample land for biomass accumulation, plant construction and expansion of plants and value added businesses such as urea coating and blending.” Construction on the site is slated to commence in early 2013. The proposed initial plant will be able to produce 15 st/h of urea, 360 st/d, and 124,200 st/y.

N.D. is dropping NH3 tank lock rule

News, News Briefs

Bismarck — Officials say they’re ready to rescind a 2003 law requiring farmers to place locks on anhydrous ammonia tank valves when the tanks are left unattended. It’s believed to be one of the few, if not the only, such law in the country, adopted in an attempt to crack down on ammonia being used to make methamphetamine. The program was originally implemented in Williams and McKenzie counties in the northwestern portion of the state. “The administrative rule was adopted by the commissioner in 2003 due to a high rate in theft of anhydrous ammonia in those two counties as a pilot program to see how it works,” said Spencer Wagner, fertilizer specialist with the North Dakota Agriculture Department. “After some discussion with law enforcement and the attorney general’s office, we proposed to repeal the existing law. It’s a hard rule to enforce, and we’ve come up with some new regulation to curb meth use. For example, we still train people to look for keys when theft occurs.” State reports also indicated the old law was never enforced, and the $100 fine for a first offense was never levied for a first offense. State officials aren’t too concerned about the theft of NH3 to be used in meth labs, and the state has placed restrictions on the sale of over-the-counter pseudoephedrine, a key component of meth. Since then, the state’s criminal charges for meth manufacture have dropped from about 300 in 2003 to less than 10 in 2010. State officials are currently going through comments received during a comment period that ended Dec. 18, 2012, before proceeding with the repeal, which is likely to happen.

New Indiana fertilizer application rule

News, News Briefs

West Lafayette, Ind. — The Office of the Indiana State Chemist (OISC) has issued new fertilizer application regulations to ensure proper nutrient management and protect farmers and the environment. The rules, effective Feb. 16, include staging and application restrictions for both chemical fertilizers and manure, and apply to anyone using fertilizers for producing an agricultural crop. Those applying less than 10 cubic yards in a year are not covered. Large permitted livestock operations that perform liquid nutrient applications already fall under the Indiana Department of Environmental Management’s Confined Feeding Operation laws. The new rule, however, extends to smaller producers mostly applying solid manure. "This is really a common-sense approach to nutrient management and preserving the environment," said OISC’s Ron Lemenager. "Most of our livestock producers already are doing these things, so the rule shouldn’t be a significant burden." The new rule requires both fertilizers and manure to be staged at least 300 feet away from surface water, water wells, and drainage inlets. Neither can be staged in a waterway, floodway or standing water. Manure must also be staged at least 100 feet from property lines and public roads, and 400 feet from residential buildings. Fertilizers cannot be applied directly to water, from a public road, or to saturated ground. Setback restrictions for manure application depend on type and application method. Solid manure applied via single-pass incorporation must be applied 500 feet from public water supplies, 25 feet from surface waters, 25 feet from sinkholes, 50 feet from water wells, and 5 feet from drainage inlets.

CPS close to getting Iowa tank okay

News, News Briefs

Davenport, Iowa — Scott County officials are working their way through the final approvals for Crop Production Services (CPS) to locate on four acres of rezoned land a 30,000 gallon anhydrous ammonia tank that has been the focus of opposition from a few neighbors concerned over safety and traffic problems and other issues. Many farmers, however, welcome the competition and additional source of ammonia. “It makes good sense to have a distribution facility in the area,” offered Mike Holst, Scott County Farm Bureau president, who noted that in some cases it has meant hauling the product 50-70 miles. County Planning Specialist Brian McDonough described the property as simply farm land owned by a farmer but not currently in crop production. The residential properties are located on farm strips owned by non-farmers, and are pretty widely scattered. “Mostly their concerns are about safety and the possibilities of evacuation if there should be an accident,” McDonough explained. “There’re also traffic concerns about tanks being towed into the area and there could be an accident.” McDonough said the next step is for the board of supervisors to vote on the rezoning and site plan approval. They will need two readings or votes to make this official. Their next scheduled meeting is set for Jan. 17; if they approve the first reading at this meeting, they could finalize the decision with a second reading at their Jan. 31 meeting. Thereafter, CPS can begin construction. CPS, facing community opposition, initially pulled its plans for the new storage tank last fall (GM Sept. 24, 2012, p. 10), but renewed its efforts later in the fall (GM Nov. 12, 2012, p. 10).

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