All Posts from April 19, 2019

NH3 Leak Reported at Iowa Co-op Location

Ammonia, News, News Briefs, Western Cornbelt

An anhydrous ammonia leak occurred on April 16 at Five Star Cooperative’s Mason City, Iowa, location. A damaged valve was replaced by the hazardous materials team from the Mason City Fire Department around 4 p.m., according to the Globe Gazette, citing Deputy Chief of Operations Aaron Beemer, who estimated that some 21 percent of the ammonia inside the full 80,000-gallon tank escaped after the leak occurred around 9:30 a.m.

While the nearby Cartersville Elevator and Mason City Recycling Center were evacuated and nearby roadways closed, local residents were not evacuated, according to Cerro Gordo County Chief Deputy David Hepperly, who said wind blew the fumes away from inhabited areas.

OCI NV – Management Brief

Management Briefs

OCI NV, Amsterdam, announced on April 17 that its non-executive board of directors will propose to appoint Dod Fraser and David Welch as independent non-executive members and Maud de Vries as executive member of the board of directors at the Annual General Meeting (AGM) of shareholders on May 29. This will increase the OCI board from nine to 12 members.

The new board will consist of independent non-executive Chairman Michael Bennett; Executive Directors Nassef Sawiris, Hassan Badrawi, and Maud de Vries; non-executive Director Jérôme Guiraud; and independent non-executive Directors Dod Fraser, Gregory Heckman, Robert Jan van de Kraats, Anja Montijn, Sipko Schat, David Welch, and Jan Ter Wisch.

Welch, a U.S. citizen, recently retired as President for International and Government Affairs at Bechtel. Prior to that, Welch served 32 years with the U.S. Foreign Service. He was nominated by the President and confirmed by the Senate to senior positions in successive Democrat and Republican administrations: among other roles, he was Assistant Secretary of State for Near Eastern Affairs (2005-2008), the senior-most U.S. diplomat for the region, and served as Ambassador to Egypt (2001-2005), Assistant Secretary for International Organizations (1998-2001), and acting Chief of Mission in Saudi Arabia (1992-1994). Welch also served on the National Security Council staff at the White House (1989-1991). In 2008, he attained the lifetime rank of Career Ambassador, one of only about 60 American diplomats to achieve this designation in its history.

Welch was a board member of the U.S.-Saudi, the U.S.-U.A.E., and the U.S.-Egypt Business Councils, and is a member of the Council on Foreign Relations and the American Academy of Diplomacy. He is a graduate of Georgetown University and the Fletcher School at Tufts University.

Fraser, a U.S. citizen, is currently president of consulting firm Sackett Partners, and was until its delisting in 2018 a member of the board of OCI Partners LLC, now a 100 percent subsidiary of OCI NV. During his 27-year career in investment banking, he served as Managing Director and Group Executive of the Global Oil and Gas Group of Chase Manhattan Bank (now JP Morgan Chase & Co.) from 1995 until 2000, and held various positions of increasing responsibility with Lazard Freres & Co., most recently as General Partner, from 1978 to 1995. Fraser is a director of two public companies: Subsea 7 SA since 2009, and Rayonier Inc. since 2014. He previously also served on the boards of Smith International Inc., Terra Industries Inc., and Forest Oil Corp. He holds a degree from Princeton University.

De Vries, a Dutch citizen, serves as the group’s General Counsel and Executive Vice President, Legal and Human Resources. She joined OCI in 2014 and has held several leadership positions, including General Counsel, HR Director, Company Secretary, and Compliance Officer. Prior to joining OCI, she held the positions of General Counsel/Senior Executive at Corio NV.

De Vries started her career as an attorney at Dutch law firm Trenité Van Doorne. She has a law degree from the University of Leiden in the Netherlands and was admitted to the bar in 1997. She also attended INSEAD, where she completed the Strategy Execution Programme.

Itafos – Management Brief

Canada, Management Briefs

Itafos, Toronto, on April 15 announced the appointment of Dr. Wynand van Dyk as Vice President of Operations, effective May 1, 2019. Dr. van Dyk, who has been providing consulting services to the company since August 2018, has over 25 years of experience in minerals processing, metals refining, risk management, process optimization, and project management.

Prior to joining Itafos, Dr. van Dyk worked as a consultant for Arete Consultants in South Africa, providing strategic management consulting services to a long list of clients, including Anglo American, African Rainbow Minerals, AngloGold Ashanti, and De Beers. Prior to joining Arete he worked for Lonmin Platinum Ltd. in various positions. He has a bachelor’s degree in Chemical Engineering and a PhD in Extractive Metallurgical Engineering.

Growmark FS Buys Miller Spraying

News, News Briefs

Growmark FS LLC, Milford, Del., a unit of agricultural cooperative Growmark Inc., Bloomington, Ill., reported on April 17 that it had just completed the purchase of Miller Spraying LLC, a full-service ag retailer in Lowville, N.Y. Growmark said this expansion bolsters its footprint in the northern regions of New York.

Aaron Miller, who launched Miller Spraying in 2001, will continue in a consultation role. His team will stay on as Growmark FS employees.

“As Growmark FS explored the opportunity of expanding its reach into the North Country and beyond, we became excited to continue the customer focus that Aaron and his team have fostered,” said Growmark FS Atlantic Region Manager John A. Richman. “The customer-focused and team-oriented nature of Miller Spraying fits perfectly with that of Growmark FS.”

Growmark FS operates more than 30 full service agricultural retail locations throughout New York, Pennsylvania, New Jersey, Maryland, Delaware, and Virginia. They focus on the sales and service of dry and liquid crop nutrients, crop protection products, and seed, including turf, forages, cover crops, corn, and soybeans. In addition, most locations offer services of custom application and precision agriculture.

 

Heringer Capacity Down 55 Percent from 2018; 4Q Volumes Off 69 Percent

Brazil, News, News Briefs, Specialty

Fertilizantes Heringer, Viana, Brazil, which is in the midst of bankruptcy reorganization, reported that its current capacity for seven blending plants is now 2.9 million mt/y, down from the 19 plants and 6.5 million mt/y of capacity it started with in 2018. The company closed nine plants earlier this year and three in late 2018 (GM Feb. 8, p. 1; Dec. 14, 2018).

Plants identified in operation include those in Candeias, Viana, Manhuacu, Iguatama, Catalao, Ourinhos, and Paulinia. The company is reported to be eyeing the sale of seven of its idled plants (GM April 12, p. 27), though the particular ones have not been identified. Idled locations include Rondonopolis, Dourados, Tres Coracoes, Uberaba, Rio Verde, Porto Alegre, Rio Grande, Paranagua, Rosario do Catete, Patos de Minas, Sao Joao do Manhuacu, and Bebedouro. Rondonopolis was a leased, not owned, location.

Citing a lack of financing for high-priced raw materials, Heringer reported a 68.6 percent drop in fourth-quarter 2018 fertilizer sales volumes to 390,216 mt, down from the year-ago 1.25 million mt. Both specialty and traditional tons were down, though specialty a bit more, down 70.9 percent to 168,000 mt from the year-ago 577,000 mt. Traditional tons were off 66.9 percent, to 222,000 mt from 672,000 mt. The company noted that specialty volumes accounted for 43 percent of sales for the quarter, versus 46 percent for the year-ago period.

Heringer reported a fourth-quarter net loss of R$338.1 million on revenues of R$576.2 million, versus a year-ago loss of R$23.2 million on revenues of R$1.49 billion. EBITDA was a loss of R$34.3 million, compared to the year-ago positive R$71.2 million.

Full-year volumes were down 32.4 percent, to 2.85 million mt from 2017’s 4.22 million mt. Specialty volumes were off 34.6 percent to 1.28 million mt, down from 1.96 million mt, while traditional were off 30.5 percent, to 1.57 million mt from 2.26 million mt. For the year, specialty represented 45 percent of sales, versus 46 percent in 2017.

Heringer reported a full-year net loss of R$779.6 million on revenues of R$3.69 billion, compared to 2017’s loss of R$125.6 million on revenues of R$4.79 billion. EBITDA was a negative R$150.4 million, compared to a positive R$91.9 million.

Heringer stressed that while specialty volumes may be down a little more than traditional, their margins have improved, working their way up from 5.4 percent in 2016 to 10.4 percent in 2018. The company also reported that in late 2018 it launched a new foliar treatment product, FH Attivus, which uses an exclusive formulation composed of nutrients combined with the Biocomplex technology, which it said promotes growth and development on a balanced basis.

Heringer put Brazil fertilizer consumption at 35.5 million mt in 2018, and expects a 3 percent in 2019 to 36.6 million mt.

The company listed total liabilities as R$2.45 billion as of Dec. 31, 2018.

New Agris Facility Debuts

News, News Briefs

Agris Co-operative, Thamesville, Ont., celebrated the official opening of its new fertilizer blending system on April 18. The capital investment for the project topped $2.5 million. Agris said it will increase the previous blending capability to 300 mt/h, four times faster than before.

This investment completes an overall strategy to increase capacity throughout the cooperative’s full trade territory. Over the past several years, Agris has brought its overall blending capacity to nearly 1,000 mt/h across its nine blending sites. Each site has the ability to add nitrogen stabilizer and micronutrient products in a liquid form to dry blends. Agris said this capability allows precise, cost-effective, and convenient plant nutrition in a high-quality fertilizer blend.

“This is about investing in our future by improving our capacity to meet our farmer-owners’ ever increasing requirement for speed, accuracy, and flexibility,” said John Nooyen, Agris Board President. “We have fundamentally changed our fertilizer blending capacity across our Agris locations and are now better able to meet the present and future needs of our owners and customers.”

“It is clear that we needed to be able to service more acres per day to ensure our owners and customers could plant their crop during a challenging spring,” added Jim Campbell, Agris General Manager. “As farmers continue to adapt their 4R Nutrient Stewardship practices, the need for flexibility and timeliness are amplified.

“We are now using the latest technology to seamlessly transfer information from the field to the plant and back to the field using our Advanced Information Systems. We are working hard to leverage new technology to maximize yields and profitability at the farm-gate across our whole cooperative system,” Cambell said.

Agris is a 100 percent farmer-owned grain marketing and farm input supply company that serves more than 1,000 farmer owners in 14 locations in Essex, Kent, Elgin, Middlesex, and Lambton Counties. It is a leader in precision farming technology, seed, agronomy and petroleum services.

The cooperative is a partner of Great Lakes Grain, a grain merchandising company. Agris is a member-owner of Growmark Inc., Bloomington, Ill., and markets products and services under the FS banner.

West Memorial Dedicated

News, News Briefs, Texas

The Fallen Heroes Memorial, in honor of the 15 people who were killed in the West, Texas, explosion on April 17, 2013, was dedicated on April 13, 2019. The memorial, which is located in the corner of a city park about 100 yards from the site of the explosion, includes a reflecting pool with an eternal flame, as well as plaques that honor the 12 first-responders and three residents who died in the blast. Construction began in May 2017 (GM June 16, 2017).

Texas Governor Greg Abbott attended the dedication. He highlighted the resilience of the West community and recognized their work to establish the memorial.

Ma’aden Acquires African Distributor

Africa, Featured, News, Saudi Arabia

Ma’aden, Saudi Arabia’s largest mining company, will make its first international acquisition with the purchase of an African fertilizer distribution company. The publicly-listed Saudi Arabian Mining Co. will acquire an 85 percent stake in the Mauritius-based Meridian Group in an all cash deal that will provide one of the Middle East’s largest phosphate producers with 3,000 staff and a network of operations across southern Africa, from Malawi to Mozambique, Zimbabwe, and Zambia.

Ma’aden will secure the remaining 15 percent of Meridian’s equity over four years on agreed terms linked to the performance of the African company, which distributes approximately 500,000 mt/y of fertilizer through its network of granulation and blending plants, warehousing complexes, and port facilities.

“This acquisition marks a very important step in Ma’aden’s strategy to build global distribution channels for our fertilizer products,” said Ma’aden President and CEO Darren Davis. “As we continue to build one of the largest producers and exporters of phosphate fertilizers in the world, ensuring an efficient route to key growth markets is critical to our success.”

“Ma’aden is acquiring unparalleled access to complementary distribution, blending, and product development capabilities in this fast-growth region,” said Ma’aden Senior Vice President for Phosphate Hassan Al-Ali. “This transaction will provide us with logistics advantages in Southeast Africa and greater knowledge of on-the-ground customer requirements, both of which will be instrumental in better serving our customers.”

Ma’aden noted that the Southeast African market, like most of the African continent of 1 billion people, is witnessing increased demand for phosphate fertilizers, with industry estimates of 5 percent annual demand growth over the next decade as both population growth and fertilizer education continue.

The deal is expected to be completed by September for an undisclosed fee, according to parties linked to the deal.

 

Verdant/CD Capital Deal Gets Independent Nod

Australia, News, News Briefs, Phosphate, Specialty

Australian junior phosphate miner Verdant Minerals Ltd. (VRM), Stuart Park, Northern Territory, said on April 15 that PricewaterhouseCoopers Securities Ltd., which it engaged for an independent assessment of CD Capital Natural Resources Fund III LP’s plan to acquire 67 percent of VRM, has adjudged the plan fair and reasonable and in the best interest of VRM shareholders.

Shareholders are to vote on the deal on May 29, with it slated to be implemented on June 18. The deal is valued at A$40.5 million. Long-time shareholder Washington H. Soul Pattison & Co. Ltd. will retain a minority 33 percent stake. VRM’s portfolio includes projects in the Northern Territory, including the Ammaroo Phosphate Project, a sulfate of potash project, and the Dingo Hill Silica Project.

Sirius Launches First Tunnel-Boring Machine

England, News, News Briefs, Polyhalite, Specialty

Sirius Minerals, Scarborough, U.K., on April 12 officially launched its first 1,800 mt tunnel boring machine (TBM), which will be used to construct a 23-mile mineral transportation tunnel from Teesside to Whitby.

At a ceremony in Redcar, local schoolchildren unveiled a plaque with the name of the machine, Stella Rose, which was chosen by an online vote. The name was selected by local schoolboy Warren Walls, age 8. Stella means “star” in Latin, whereas Sirius means “brightest star.” Rose comes from a famous local landmark, Roseberry Topping, a distinctive hill in North Yorkshire.

Sirius said the mine, which has been designed with most of its infrastructure underground , will create over 1,000 long-term jobs and support a further 1,500 in the supply chain. Some 900 people are reported to be already working on the project.

Strabag AG, Vienna, the tunnel contractor (GM Feb. 22, p. 29; March 20, 2018), which also worked on the 35-mile Gotthard Base Tunnel under the Alps, will now push the machine into the ground down a pre-excavated portal to bore the first of three separate tunnel drives that will make up the tunnel.

Two further machines are planned to be launched in due course from Whitby and Lockwood Beck, near Guisborough, to complete the other 15 miles of the six-meter diameter tunnel. Each TBM will operate 24 hours a day, 7 days a week, lining the tunnel with a total of 150,000 concrete segments to form rings that reinforce the tunnel walls.

Sirius expects to strike first polyhalite in 2021, and aims to be producing 10 million mt/y by 2024.

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