Mine opponents pit fisheries against phosphates

Opponents of a proposed PCS Phosphate mine expansion near Aurora, N.C., are highlighting recent comments to the U.S. Army Corps of Engineers. PCS, a unit of Potash Corp. of Saskatchewan Inc., has sought a permit to mine on 3,412 acres, which includes 2,408 acres of wetlands (GM Jan. 15, p. 10-11).

Those weighing in against the expansion include the Pamlico Tar River Foundation, the Southern Legal Environmental Law Center, the N.C. Division of Marine Fisheries, the U.S. Fish and Wildlife Service, William Schlesinger, Dean of the Nicholas School of the Environment and Earth Sciences at Duke University, and Joanne Burkholder, Director of the Center for Applied Aquatic Ecology at N.C. State.

Opponents say the expansion would be the largest ever wetland destruction project in the state and would destroy a significant portion of six nearby creeks and almost all of their surrounding drainage areas, which are essential for commercial fisheries production of blue crab, penaid shrimp, Atlantic Croaker, and bay anchovy. As a result, they say, thousands of local jobs and $1 billion generated by the fisheries would be threatened. They also allege that PCS, while promising two acres of mitigation for each acre mined, is seeking to avoid recreating or restoring stream buffers as legally required.

Opponents also argue that PCS has alternatives to the expansion, such as mining its upland phosphate reserves or importing rock from Morocco. PCS already buys rock from Morocco for its Geismar, La., facility.

Opponents also cite the huge profits being posted by PCS, and termed the Canadian-based company as “foreign.” They worry that once the phosphate is gone, the region will be left with a lifeless river.

The public, spurred by fears of job losses at the existing PCS facility in Aurora, turned out at a December hearing to support the expansion. PCS has widely circulated positive reports of its past mitigation practices, though opponents charge that since the company began mining in Beaufort County in 1965, it has only reclaimed 14 percent of the land it has mined.

“We are in the process of reviewing comments from a variety of environmental agencies and the public to the U.S. Army Corp of Engineers’ Draft Environmental Impact Statement,” a PotashCorp spokesman told Green Markets. “We will provide the Corps and the commenting parties with PotashCorp’s responses to those comments. This procedure is a normal part of the mine permit process, and we are committed to addressing the concerns of these stakeholders.”

PCS owns 35,000 acres near Aurora. PCS believes the facility to be the largest integrated phosphate mine and phosphate processing complex at one site in the world.

During 2006, the Aurora facility’s total production of phosphate rock was 4.58 million mt. The sequence for mining portions of the Aurora property has been identified in the permit issued by the U.S. Army Corps of Engineers in 1997. The permit expires in 2017, but the reserves in these areas could be exhausted before then. As a result, PCS is seeking the new permit from the Corps to mine additional areas. The company expects to have the necessary approvals for mine continuation by the end of 2007. It says the failure to secure the required approvals for continuation of the mining operations, on acceptable terms, would negatively affect reserves and costs.

New California terminal begins operation

The new public Inland Terminal in Woodland, Calif., has begun operation in time for the spring planting season. The $3 million liquid facility, a joint venture of Northern California agricultural retailers, was built to provide more efficient distribution of nutrient products to this area of the state.

Inland has six tanks with 3.6 million gallons of capacity. Future expansion plans call for an additional 1.8 million gallons of storage to be added. The terminal, which receives fertilizer by truck and rail, offers certified carriers an automated loading system with 24 hours a day access to provide maximum efficiency during peak fertilizer requirement season. Four load-out bays allow quick turnaround for trucks hauling out of the terminal.

Current tenants at the facility include Agrium Inc., Tessenderlo-Kerley, and Best Sulfur Products. More tenant spots are available. Current products available include UAN-32, CAN 17, 10-34-0, calcium thiosulfate, and potassium thiosulfate.

Johnny Council, manager and spokesman for Inland Terminal, noted that the strategic location of the facility reduces truck traffic to outlying storage and port facilities during the busy planting and growing season. The location allows trucks to make several deliveries a day to growers and fertilizer facilities in Northern California. Inland said this is very difficult to accomplish from more distant terminals due to restrictions on hours of service for truck drivers. Inland Terminal can be contacted at 530-662-5442, or on the web at www.inlandterminal.com.

The facility is located at the intersection of East Street and Road 18C, with convenient access to Interstate 5. One source said the location allows product to be sourced without having to take trucks through more congested areas such as Sacramento and Stockton.

Gross receipts tax upsets Illinois agribusiness

Springfield, Ill.-Farm input businessmen would be hit particularly hard by Gov. Rod Blagojevich’s plan for a gross receipts tax, according to the Illinois Fertilizer and Chemical Assn. (IFCA). The ½ percent levy on gross sales and 1.8 percent on service for the manufacture, wholesale, and retail market was unveiled earlier this month in his FY2008 budget message as a “Tax Fairness Plan which closes corporate loopholes and gives the middle class the relief it deserves.” IFCA Pres. Jean Payne responded, “We are an industry of high volume and low margins. In order for input dealers to recoup, the farmer would have to see price increases of 15 to 25 percent. In the real world, however, it will be extremely difficult to pass along this tax and impossible for wholesalers and dealers located near the border of the five states that surround Illinois.” Payne pointed out that competitors in neighboring states would not be subject to the gross receipts tax and would have a price edge on Illinois agribusinesses on fertilizer, chemicals, seed, fuel, grain, and the rest. “In 2004 our industry was successful in defeating a proposed 6.25 percent sales tax on all ag inputs,” she recalled. “This new one would be more than double any sales tax and would be devastating to Illinois agriculture.” The governor’s tax plans are expected to be debated in the legislature through May, and IFCA “will be working with our supporters to defeat this proposal in its entirety.”

Dust explosion rips roof at Synagro facility

Hagerstown, Md.-A March 13 dust explosion at a biosolids drying and pelletizing plant operated here by Synagro Technologies left a gaping hole in the roof, but caused no serious injuries. Synagro officials said the problem occurred in a “hot spot” in the cyclone separator where some of the particles that are recycled back into the process have the same Btu as low grade coal. Synagro Executive VP and General Counsel Alvin Thomas told Green Markets that the top on the cyclone blew off, just as it was designed. Thomas said the safety mechanism is built into the cyclone to pop off or release. “The good news is that the system worked as it was supposed to,” he added. “The bad news is that it happened at all.” The local press reported that four employees were in the building adjacent to the Hagerstown treatment plant; one sustained minor injuries but declined treatment. Hagerstown Fire Marshal Tom Brown told the press he did not know whether the explosion was related to three fires – two of them that day – that had broken out in a drying drum at the facility over two days. Thomas said the Hagerstown site is the smallest of the 700 municipal and industrial facilities served by Synagro in 40 states.

Truck spills 6,200 pounds of fertilizer in stream

Topeka-State investigators have lifted an advisory to farmers to avoid using water from two streams for livestock. The advisory was issued for two streams in Jackson and Atchison counties in northeast Kansas nearly a week after a dry float spreader truck mishap dumped 6,200 pounds of granular fertilizer in Spring Creek. The Kansas Dept. of Health and Environment and Dept. of Wildlife said concentrations of ammonia and nitrates had returned to a safe level after sampling indicated elevated levels from the March 7 incident. No dead fish had been found in the two streams. The mixture of solid urea, MAP, and potash spilled from the spreader truck about three quarters of a mile south of Highway 9 on the Nemaha-Jackson County line.

Noble enters jv in Brazil

Hong Kong-Noble Group reports that it has entered into a tripartite joint venture to form a new fertilizer blending and marketing company in Brazil. The new jv will be composed of Peninsula, a well-recognized local fertilizer blender in Brazil; MAS Trade Holding, a Dutch holding company with important participations in companies involved in the supply of international fertilizer raw materials; and Noble. Peninsula’s current activity is to blend fertilizers and market other fertilizer raw materials to grain and agricultural producers in the states of Paraná, São Paulo, Mato Grosso do Sul, and Mato Grosso. The objective of this new jv is for each shareholder to use its added value to gain a multiplier effect for the value of the jv in the Brazilian fertilizer market. Noble says the new jv will add value to its existing origination base in the several grain producing states of Brazil and will enable barter and exchange operations not only for grains, but also for other agricultural commodities that Noble Group is involved in Brazil, such as sugar, coffee, cotton, etc. The jv is also expected to expand into Paraguay, Argentina, and Uruguay. Noble’s investment in the jv is $4.3 million. Net assets of the jv are listed as $7 million.

ATF, police probe theft of ‘large quantity’ of AN

St. George, Utah-ATF agents have taken charge, with assistance from the local police and the FBI terrorism task force, of an investigation into the theft of a “large quantity” of ammonium nitrate from a construction site near the Utah-Arizona border. One ATF agent involved in the case told Green Markets that the ammonium nitrate in 50 and 30 pound bags was taken, possibly between Oct. and February, from a locked facility. The agent, who said his name could not be used, declined to say specifically how much was missing, but said it did not involve dozens of bags as reported in the local press.

Minor fire reported at Pursell plant

Sylacauga, Ala.-A fire caused the evacuation of the Pursell Technologies plant, as well as local residences, here on March 12. However, a spokesperson for Agrium Inc., which owns Pursell, said that the fire was out within an hour and evacuees were allowed to return within two hours. No injuries were reported, and there was no structural damage to the facility, according to Agrium. The fire was restricted to an area in and around one piece of equipment in an NPK plant. Some smoke damage was reported. The NPK unit was expected to remain down until repairs could be made.

AS added to Marsulex results, sulfur sees writedown

Toronto-Acquisitions helped boost Marsulex Inc.’s net income to $7.1 million and revenues to $249.6 million for the year ending Dec. 31, 2006, compared to 2005’s $1.4 million and $166.5 million, respectively. Marsulex also noted some fertilizer-related developments, as the ammonium sulfate startup at the Syncrude facility in Fort McMurray added $800,000 in sales to the company in the fourth quarter. AS production began in the third quarter. The company’s U.S. West Coast sulfur prilling business was negatively impacted by lower sulfur prices. Marsulex said prilled sulfur prices declined 29 percent during the year. As a result, a decline in margins and highly competitive conditions at Long Beach led it to record an asset impairment charge of $2.8 million in the fourth quarter. Company-wide, the company saw a loss of $1.4 million on sales of $69.4 million, versus a year-ago loss of $400,000 and sales of $47.5 million.

Sabic takes 30 percent stake in phosphate project

Ras Az Zawr, Saudi Arabia-Sabic has signed an agreement to take a 30 percent stake in the Ma’aden phosphate project in Saudi Arabia. Ma’aden will retain 70 percent. The project will use phosphate reserves in northern Saudi Arabia to produce phosphate fertilizers in the Minerals Industrial City at Ras Az Zawr. Ma’aden will furnish technology and phosphate expertise, while Sabic will provide technology and marketing expertise in nitrogen. The project is expected to go on-stream by mid-2010 and produce 3 million mt of DAP. It will be one of the world’s largest single phosphate fertilizer complexes. Total capital investment in the project is put at SR13 billion, or US$3.5 billion.

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