All Posts from September 2, 2015

Intrepid receives “imminent danger order” – Alert

Intrepid Potash Inc. reported to the U.S. Securities and Exchange Commission that on Aug. 26, it received an imminent danger order issued by the Mine Safety and Health Administration under Section 107(a) of the Federal Mine Safety and Health Act of 1977, relating to the ore hoisting shaft at the West Mine near Carlsbad, N.M.

Intrepid said the order relates to maintenance issues and salt build-up in the shaft. The order was terminated shortly after its issuance once all personnel were removed from the shaft.

Intrepid said the order does not impact the personnel and service shaft at the West Mine or the two active shafts at the connected East Mine. 

Intrepid said no injuries have occurred as a result of the cited conditions. The company said it has temporarily suspended production at the West Mine while it takes corrective actions, which are currently underway, to resolve the cited conditions.

EuroChem starts NH3 plant construction – Alert

EuroChem on Sept. 2 announced that its subsidiary Phosphorit has commenced the construction of a new high-tech ammonia plant in Kingisepp, Russia. The project is the first of some five major projects the company expects to complete in the next 10 years EuroChem (GM April 20, p. 14).

The Kingisepp ammonia plant will have a design capacity of 1 million mt/y. In addition to the ammonia production facility, the project includes utilities and offsites, such as a warehouse for liquid ammonia. All Engineering, Procurement and Construction (EPC) work is expected to be completed within 36 months.

The company plans to invest approximately €900 million (US$1 billion) in the new project.

Commenting on the news, Dmitry Strezhnev, CEO of EuroChem, said: "We are pleased to have launched the construction of our new ammonia production facility in Kingisepp, which is expected to be brought online in 2018."

"This project is part of EuroChem’s broader strategy to improve our level of self-sufficiency through greater control over our own raw materials base. The additional volumes of ammonia from the Kingisepp facility will have a direct, positive effect, on the future efficiency and reliability of our fertilizer production. This will further strengthen our business, placing us at the forefront of global fertilizer production."

AN plant to close – Alert

Malaysia’s CCM Fertilizers will cease operations of its Shah Alam ammonium nitrate manufacturing plant, citing prolonged negative market conditions, reduced demand for AN fertilizers over the last five years and the changes in the area around the plant site. It said these factors no longer provide conditions conducive for fertilizer manufacturing.

CCM said the market outlook for the product is bearish, with major customers comprising the oil palm plantation houses trending down to cheaper fertilizers such as straights and mixtures as the downtrend in prices of Crude Palm Oil (CPO) is worsened by high CPO inventory level, low crude oil and other commodity prices.

The Shah Alam plant commenced in 1966 with a capacity of 240,000 mt. The plant experienced a loss before tax of RM4.3 million in 2014 and the business continued to face challenges in 2015.

The closure is expected to be completed by June 30, 2016, and will impact 230 jobs. The company will take a RM30 million impairment.

The company said there will be no change with respect to the availability of Cock’s Head Brand (CHB) products as manufacturing of urea-based fertilizer will continue at CCMF’s plants in Lahad Datu, Sabah and Bintulu, Sarawak, which have a joint annual capacity of 260,000 mt. The supply for AN based fertilizer will be fulfilled through outsourcing to a third-party manufacturer.

"We wish to assure our customers and suppliers that despite the closure of the Shah Alam plant, there will be no disruption of supplies in the market. There is an adequate stock of CHB products and a transition into third party manufacturing has already commenced. We will continue our trading business and serve all commitments made to our customers," said CCM Fertilizers in a statement.