NeuAG LLC, The Woodlands, Texas, announced the addition of Grace Ouwenga to its sales team. The company said she brings experience in procurement, customer service, and sales. She will be Account Manager, focusing on market growth in the Central and Midwest Regions, reporting to Alan Goldsby.
Nevada Zinc Corp., Toronto, on March 14 announced the appointment of Igor Danyliuk to the Board of Directors. The company said he brings over 40 years of capital markets experience, having worked on Bay Street and Wall Street as an investment banker, a top-ranked equity research analyst, and most recently as Head of Research for one of Canada’s major banks.
He holds an MBA from Harvard Business School and a BASc (Engineering Science) and MASc (Chemical Engineering and Applied Chemistry) from The University of Toronto.
Nevada Zinc is an exploration and development company focused on its wholly-owned Lone Mountain zinc project in central Nevada, with the strategic objective of producing zinc-based products, including fertilizers, animal feed, and chemicals.
In July 2020, the company entered into a Collaboration Agreement with Cameron Chemicals Inc., Virginia Beach, Va., a U.S. producer and distributor of granular micronutrients to the agricultural, turf, and horticultural industries with manufacturing facilities in Washington, Virginia, and Michigan.
Under the agreement, the two would work together to establish a range of zinc-based micronutrient fertilizers to be produced by the company and marketed by Cameron through its distribution networks. In March 2021, Nevada Zinc commenced a multiphase pilot plant program to produce zinc sulfate and further de-risk and advance the Lone Mountain high-grade zinc carbonate-oxide deposit.
Energy industry service provider Petrofac, Saint Helier, N.J., said on March 15 it will assess the feasibility of building a hydrogen-to-ammonia plant powered by solar and wind energy in Egypt with in-country subsidiary of Egypt-focused Mediterranean Energy Partners (MEP). The proposed facility at Ain Sokhna port on the Gulf of Suez would produce 125,000 mt/y for export.
The U.S. Bureau of Land Management (BLM) has recognized the conservation efforts of Itafos Conda Phosphate Operations near Soda Springs, Idaho, by awarding Conda a leadership partner award during the 87th North American Wildlife and Natural Resources Conference.
The award was given March 10 to the Southeast Idaho Habitat Mitigation Fund developed and financed by Conda. It recognizes external organizations or individuals representing a conservation organization for outstanding partnership in developing and implementing conservation programs and activities that directly benefit fish, wildlife, and/or native plants on public lands.
In 2017, Conda gave $1.2 million to the fund to mitigate impacts of its Rasmussen Valley phosphate mine. Its contribution led to an additional investment of $3.5 million in federal, state, and private funds for a total of $4.7 million to further enhance wildlife habitat projects.
In January 2018, Itafos acquired the Conda Phosphate Operations in Southeast Idaho’s Caribou County for $100 million from Agrium Inc., which now is part of Nutrien Ltd., Saskatoon. Phosphate mines in the region generate 22 percent of the nation’s phosphate supply and 2 percent of the world’s supply.
A recent decision by the Canadian government to implement a 35 percent tariff on virtually all imported goods from Russia and Belarus that were not in transit prior to March 2, 2022, has raised red flags among farmers and member of the Canadian fertilizer industry, who said the tariff could severely restrict spring fertilizer supplies in Eastern Canada.
The tariffs are part of Canada’s decision earlier this month to withdraw the most-favored-nation status to Russia and Belarus as trading partners. Fertilizer industry participants told Green Markets that as much as 25 percent of phosphate fertilizers and 55 percent of nitrogen fertilizer used in Eastern Canada comes from Russia, mostly in the form of urea, UAN, and MAP.
“Right now, there are a lot of gray areas with the logistics of the Russian sanctions, and we are working with our government contacts to bring some clarity to them,” Fertilizer Canada told Green Markets. “While it’s having a negative overall effect to the whole industry, Eastern Canada will be disproportionately affected since they depend on Russian fertilizer imports. At this time, our members impacted by the sanctions are looking to source product to avoid issues of shipments being turned away or being subjected to the 35 percent tariffs.”
A letter drafted by the Ontario Agri-Business Association (OABA) is making the rounds among trade and farm groups in Eastern Canada. Addressed to members of parliament, the letter urges the Standing Committee on Agriculture and Agri-food (AGFI) to hold an emergency meeting to tackle the supply chain challenges that the Canadian fertilizer industry currently faces, and specifically the impact the tariff will have on spring fertilizer supplies.
“The agricultural sector is fully supportive of punitive actions against Russia resulting from their decision to invade Ukraine,” the letter states. “Although the tariff is intended to be a punitive action against the Russian economy, the consequences will ultimately be felt by Ontario farmers through spring fertilizer supply shortages and price increases.”
The letter notes that Canadian farmers and the fertilizer industry have adapted to a variety of recent challenges, including supply chain disruptions and product shortages related to COVID-19, a global shortage in shipping containers, and a general lack of available labor.
“We have faced these challenges head on and adapted quickly,” the letter states. “However, we find that the implementation of a 35 percent tariff on fertilizer imports from Russia on pre-existing orders and with minimal global sourcing alternatives at this late stage prior to spring will severely impact already tight fertilizer supplies and escalated farm level fertilizer prices.”
While expressing support for a tariff on Russian fertilizer imports that were ordered on or after March 3, the letter urges lawmakers to withdraw the tariff on fertilizer imports from Russia and Belarus that have a documented fertilizer purchase order made prior to March 2, 2022.
“Purchase orders for Russian fertilizer are typically made by Canadian based companies who import fertilizer into Eastern Canada several months in advance of shipments being initiated,” the letter states. “As a sector, our position is that fertilizer importers should not be penalized for business decisions made prior to the implementation of the tariff.”
The letter further urges that any tariff payments made by fertilizer importers be put “in-trust” until the federal government clarifies its tariff policy. This would allow Canadian companies importing fertilizer into Eastern Canada to recoup tariff payments if amendments are made to the current policy to “mitigate the undue burden placed on the domestic fertilizer supply chain,” the letter states.
In addition, the letter asks that any vessel shipments of fertilizer of Russian or Belarus origin that are currently in transit be allowed to offload at the Port of Hamilton and the Port of Montreal if all other necessary shipping requirements are followed.
“It is vital to Ontario farmers that vessels currently enroute to Canada from the Black Sea/Baltic region are permitted to deliver the fertilizer that Ontario farmers vitally need during the spring planting season,” the letter states. “If this is not allowed to happen, there is the very real probability that some Ontario farmers will not be able to access adequate fertilizer to grow their crops.”
Finally, the letter asks the Canadian government to consider providing compensation to fertilizer importers, distributors, ag retailers, and farmers for the “undue financial hardships” associated with the implementation of the 35 percent tariff on fertilizer.
“The timing of the tariff decision and implementation significantly impacted long established supply chain operations and agreements that had already been negotiated and logistics established,” the letter states. “The tariff negatively impacts product availability with no feasible global sourcing alternatives weeks before the crucial spring planting period. The tariff further escalates farm level pricing due to tariff fees being incorporated into mid-spring fertilizer imports.”
Based on existing warehouse capacity in Eastern Canada, one industry participant speculated that Ontario can store roughly 40-50 percent of its spring fertilizer needs ahead of demand. The balance, he said, is dependent on in-season rail for potash tons from Western Canada, and import vessels for a majority of the urea and UAN, as well as approximately 40 percent of the region’s spring phosphate needs. The urea and UAN imports are most often from Russia, with phosphate imports split evenly between Russia, Morocco, and the U.S.
“Typically we like to think we can get going in spring with the product on hand, but when the planting season is underway we are dependent on the vessels,” he told Green Markets.
The USDA announced on March 11 that it will make available $250 million through a new grant program this summer to support independent, innovative, and sustainable American fertilizer production to supply American farmers. The grants will go to production outside the dominant fertilizer suppliers, so as to increase competition.
“Recent supply chain disruptions, from the global pandemic to Putin’s unprovoked war against Ukraine, have shown just how important it is to invest in this crucial link in the agricultural supply chain here at home,” said Agriculture Secretary Tom Vilsack. “The planned investment is one example of many Biden-Harris Administration initiatives to bring production and jobs back to the United States, promote competition, and support American goods and services.
“As the President said [at the State of the Union], we are working to rebuild the economy towards resilience, security, and sustainability, and this support to provide domestic, sustainable, and independent choices for fertilizer supplies is part of that effort,” he continued. “In addition to the jobs, lower costs, and more reliable supply, increased investment in the domestic fertilizer industry will help address climate change by reducing the greenhouse gas emissions associated with transportation, while also fostering more sustainable production methods and more precise application.”
Details on the application process will be announced in the summer of 2022, with the first awards expected before the end of 2022.
USDA said it will use funds from the Commodity Credit Corp. (CCC) set aside in September for market disruptions to develop a grant program that provides “gap” financing to bring new, independent domestic production capacity online – similar to the recently announced meat and poultry grants that are designed to promote competition and resilience in that sector.
In addition, to address growing competition concerns, USDA will launch a public inquiry seeking information regarding seeds and agricultural inputs, fertilizer, and retail markets.
USDA is requesting comments and information from the public about the impacts of concentration and market power in fertilizer, seeds and other agricultural inputs, and retail. With these Requests for Information (RFIs), USDA is also seeking information on competition and market access for farmers and ranchers, new and growing market competitors – especially small and medium-sized enterprises – and more about the context for these markets for farmers.
The inquiry stems from the July 9, 2021, Executive Order on “Promoting Competition in the American Economy,” which created a White House Competition Council and directed federal agency actions to enhance fairness and competition across America’s economy.
“Concentrated market structures and potentially anticompetitive practices leave America’s farmers, businesses, and consumers facing higher costs, fewer choices, and less control about where to buy and sell, and reduced innovation – ultimately making it harder for those who grow our food to survive,” said Vilsack. “As I talk to farmers, ranchers, and agriculture and food companies about the recent market challenges, I hear significant concerns about whether large companies along the supply chain are taking advantage of the situation by increasing profits – not just responding to supply and demand or passing along the costs.”
USDA will seek information specifically on Fertilizer; Seed, and agricultural inputs, in particular as they relate to the intellectual property system; and Retail, including access to retail through wholesale and distribution markets.
The comment period will be open for 60 days once the requests for information are published in the Federal Register, and upon which time comments can be submitted to www.regulations.gov. In the interim, the requests for information will be made available at www.ams.usda.gov/about-ams/fair-competitive/rfi.
USDA will use the comments received to develop reports mandated under the Competition E.O., and to develop policies relating to fair and competitive markets, supply chain resiliency, pandemic response, local and regional food systems, and other areas.
Subsequent actions may range from new grant and loan programs to additional rules and regulations under the Packers and Stockyards Act of 1921 and other relevant laws to increase fairness and competition in American agricultural markets.
The Fertilizer Institute (TFI) said on March 15 that it welcomes initiatives to strengthen domestic fertilizer production, including USDA’s $250 million grant program. However, it said it is important to recognize the innovative work undertaken by companies in the U.S. market, who have made a strong comeback from the days of high natural gas prices to leverage the shale gas revolution.
“We have a more robust U.S. fertilizer industry than we have seen in two decades,” said TFI. “By enacting policies that encourage safe, abundant, and affordable supplies of natural gas, which is the chief feedstock for nitrogen production, ensuring that permitting of production plants is streamlined and adding phosphate and potash to the Department of the Interior’s Critical Minerals list, policymakers can also support this vital industry.”
TFI also noted the fertilizer industry’s investment in innovation has been longstanding. Most recently, TFI partnered with USDA, EPA, and other stakeholders on the Next Gen Fertilizer Challenges (https://www.epa.gov/innovation/next-gen-fertilizer-challenges). It said the challenges aim to accelerate the development of innovative fertilizer product technologies and increase the use of existing enhanced efficiency fertilizers (EEFs) that maintain or increase crop yields and reduce environmental impacts to air, land, and water.
TFI said it looks forward to providing USDA with data for its RFI. It said when compared to peer sectors around the world, the U.S. fertilizer industry is among the most competitive and environmentally advanced.
Morocco’s OCP Group SA aims to raise fertilizer output by more than 10 percent in 2022 to meet higher demand despite the loss of Russian ammonia from its supply chain, according to a Reuters report, citing a senior company official.
The state-owned phosphates major is targeting to increase production to 11.9 million mt this year, up from 10.8 million mt in 2021. It then plans to add another 3 million mt of annual output capacity in 2023, according to the report, citing OCP Executive Vice President, Performance Management Nada Elmajdoub.
OCP is expected to focus on production of MAP, TSP, and NP production, because these products need less ammonia to producer than does DAP. OCP sees demand for its products coming from India, the Americas, and Africa, the report cited Elmajdoub as saying.
Morocco imported some 1.65 million mt of ammonia last year, according to Morocco’s Office des Changes 2021 data. The country imported 826,255 mt from Russia in 2021, according to Trade Data Monitor, or around half its ammonia requirements.
Elmajdoub was quoted by Reuters as saying that on ammonia sourcing in particular, OCP had been working on building alternative supply “thanks to our strong network of suppliers globally.”
Longer term, the senior executive said OCP aims to start importing ammonia from U.S producers next year under a long-term supply deal, and it also expects to start ammonia production at a joint venture plant in Nigeria in 2025 (GM March 5, 2021).
OCP Group early this month inked an agreement with the U.S.’s Koch Ag & Energy Solution LLC, under which a Koch affiliate will acquire a 50 percent interest in Jorf Lasfar Fertilizers Co. III (JCF III) from OCP (GM March 4, p. 1).
As part of their agreement, the companies intend to collaborate on the supply of ammonia and sulfur to OCP, and leverage their logistical capabilities for the shipment of fertilizers from Morocco.
While never confirmed, major industry players believe that OCP has a sizeable offtake agreement with Gulf Coast Ammonia LLC (GM Jan. 10, 2020), whose new 1.3 million mt/y ammonia plant is due up in first-half 2023.
The department for Australia’s Federal Environment Minister, Sussan Ley, on March 11 issued a request to Perdaman Industries to cease work on a proposed A$4.5 billion urea plant on the Burrup Peninsula in Western Australia’s Pilbara Region while the Department considers concerns from Traditional Owners about damage to the UNESCO short-listed rock art and other culturally sensitive sites.
The request is not legally binding, and Perdaman Industries has yet to comment on the request.
The Burrup Peninsula, which is known as Murujuga by Indigenous Australians, contains what is widely considered to be the world’s oldest and largest ancient rock art collection.
The rock art has been found to be highly sensitive to the emissions produced from heavy industry, and scientific studies already have established an ongoing pattern of degradation on the surface of the art.
Western Australia’s Environmental Protection Authority (EPA) recommended Perdaman’s ammonia and urea project, located about 20 km northwest of Karratha, for environmental approval last September, subject to certain conditions, including air quality (GM Sept. 10, 2021).
EPA Chair Professor Matthew Tonts at the time said EPA’s conditions reflected the authority’s commitment to ensuring the protection of the Murujuga Peninsula’s unique environmental values, including the nearby rock art.
Tonts said the project proponent will need to demonstrate that the project has no adverse impact that accelerates the weathering of the rock art.
The Perdaman facility proposes to produce 2.14 million mt/y of granular urea, and is targeting first production in the fourth quarter of 2025 (GM May 7, p. 1).
The Northern Australia Infrastructure Facility (NAIF) in February this year announced its intention to invest A$255 million (approximately US$183 million at current exchange rates) in infrastructure supporting the Perdaman proposed urea project (GM Feb. 11, p. 34).
The investment will be used for upgrades to common-user infrastructure that will support the urea project.
Perdaman Industries’ subsidiary, Perdaman Chemicals and Fertilisers Pty Ltd., the developer the project, signed a 20-year offtake deal with Incitec Fertilizers Pty Ltd., a wholly-owned subsidiary of Incitec Pivot Ltd. (IPL), in May 2021 for up to 2.3 million mt/y of granular urea from the proposed plant.
PhosAgro PJSC, Moscow, on March 15 announced that Irina Bokova is leaving the company’s Board of Directors.
Bokova joined PhosAgro’s Board in 2018 as an independent director. In May 2019, she was elected Chair of the Board’s Sustainable Development Committee.
Uralkali PJSC said on March 17 that it was considering the temporary suspension of some of its employees as it assessed the economic situation in its markets. However, on March 18, Bloomberg reported that Uralkali had decided to postpone any decision on the temporary suspension and would inform on how the situation develops in due course.
Initial reports were that the suspension would be temporary, and staff would get two-thirds of their salary. However, Uralkali did not elaborate on how many of its workers likely would be suspended or how much of its production might be reduced if the employee suspension is implemented.
The potential move by the Russian potash producer, which controls some 20 percent of global potash output, has ratcheted up global potash supply anxieties, which already are running high due to neighboring Belarus being effectively out of the market because of European Union and U.S. sanctions unrelated to the war in Ukraine.
Belarus potash marketer and exporter JSC Belarusian Potash Co. (BPC) was forced to declare force majeure last month after Belarus potash producer Belaruskali could not find alternatives to railing potash to the Lithuanian port of Klaipėda (GM Feb. 18, p. 1). Belarus potash typically accounts for around 15 percent of global potash exports.
Uralkali CEO Vitaly Lauk, commenting on the company’s IFRS FY2021 financial results in a March 4 statement, said at that time the company continues its normal operation, but it was “closely monitoring the current geopolitical situation” (GM March 11, p. 27).
The potash company produced 12.3 million mt of potash last year (GM March 11, p. 34). Sales volumes in 2021 were lower year-over-year, slipping by nearly 6 percent to 12.0 million mt, and export sales volumes were down almost 10 percent, at 9.1 million mt. But sales volumes to the domestic market increased by 11 percent, to 2.9 million mt
“While Uralkali is not under any sanctions, Russia can’t supply farmers in Europe and elsewhere with contracted volumes of fertilizers because a number of foreign logistics companies are sabotaging deliveries,” Russia’s Industry and Trade Ministry said earlier this month, as cited by Bloomberg.
The Industry and Trade Minister on March 10 announced that Russia was to temporarily suspend exports of fertilizers, although the specific products involved and the list of countries to be affected are yet to be identified and listed by the government (GM March 11, p. 1).
Uralkali was controlled by Russian billionaire Dmitry Mazepin via Uralchem JSC, but after coming under European Union (E.U.) sanctions last week due to Russia’s invasion of Ukraine, he has transferred control of the Uralchem group to two of his long-time associates – Dmitry Tatyanin, the company’s new Chairman of the Board of Directors, and new CEO Dmitry Konyaev, according to an Interfax report on March 15.
According to the report, citing the Unified State Register of Legal Entities, Tatyanin, who has been the Legal Director of Uralchem since 2007, now owns 48 percent of Uralchem Fundamental Chemical Co. LLC, and owns JSC Uralchem UCC, a wholly-owned subsidiary of Uralchem Fundamental Chemical Co. LLC.
Konyaev, who became JSC Uralchem UCC CEO after Mazepin resigned the position on March 9, secured a 4 percent interest in Uralchem Fundamental Chemical Co. LLC.
The changes took place on March 14.
Uralchem Fundamental Chemical Co. LLC announced late on March 10 that Mazepin, who previously held a 100 percent stake in the company, had sold a 52 percent controlling stake from his holding, reducing his stake to 48 percent stake.
Konyaev previously chaired the Board of Directors of Uralchem JSC, and Tatyanin was its deputy chairman of the board.
