All Posts from April 23, 2014

ICL to expand UK production

Israel Chemicals Ltd. will expand its production of its new fertilizer polyhalite at its Boulby mine located in northeastern England. The decision follows the approval of the UK government of a 4.9 million pound grant for the expansion of the project of its Cleveland Potash Ltd. (CPL) subsidiary.

The expansion is part of a 38 million pound investment program by CPL to increase capacity and mining of polyhalite marketed as polysulfphate to around 600,000 mt/y from the current level of 130,000 mt/y. “We see significant potential in increasing our production capacity and the marketing of polysulphate,” said ICL Fertilizers CEO Nissim Adar. He added that the positive response of customers and the company’s expectation for increased demand led ICL to decide to substantially increase production.

ICL said that the new investment will be made over the next year after a full scale evaluation of the potential for a further expansion will be completed. CPL says it is currently the only company mining polyhalite and in 2010 ICL began marketing it as a new fertilizer for the agricultural markets.

ICL noted that geological surveys indicate there are deposits of more than a billion mt of polyhalite under the company’s potash mine in Boulby. The Boulby mine is currently the sole producer of potash in the UK.

CHS and Fessenden Co-op to build fert warehouse in North Dakota

CHS Inc., St. Paul, Minn., announced on April 23 that it has formed a 50-50 joint venture company with Fessenden Cooperative Association, Fessenden, N.D., to construct and operate a fertilizer warehouse at Hamberg, N.D. The facility will have 28,000 tons of nitrogen, potassium, sulfate, phosphorus, and micronutrients storage capacity and product blending capabilities.

CHS said the new warehouse at Hamberg will primarily serve farmer-owners of Fessenden Cooperative Association’s retail business, and CHS will also serve its nearby wholesale customers from this location. Plant construction will begin this summer and is expected to be completed by fall 2015. When the plant is operational, Hovland said three additional employees will be hired.

"Future market forces and trends for our region indicate we can expect more corn acres, CRP acres coming back into production, and overall increased fertilizer use to ensure healthy, profitable yields," said Mark Hovland, general manager of Fessenden Cooperative. "Our new, larger, and more efficient facility will give area growers better overall fertilizer service and options."

Hovland said the fertilizer warehouse is the second major partnership with CHS. Last year, Fessenden Cooperative and CHS built a greenfield grain shuttle loading facility on the Burlington Northern rail line at Hamberg. "Long-range plans for improved fertilizer capacity and service have long been part of our growth strategy, and we look to CHS to provide global access to a wide array of markets as well as valuable marketing insights and expertise," he said.

"CHS is focused on expanding its crop nutrients business to continue to provide its retail customers with an assured, timely supply of crop nutrients vital to profitable crop production," said Cheryl Schmura, CHS vice president, Crop Nutrients, marketing and sales. "Our partnership with Fessenden Cooperative adds critical storage capacity in a key geography."

Formed in 1943, Fessenden Cooperative is a farmer-owned grain and agronomy cooperative located in central North Dakota. The company has 60 employees serving about 700 customers from six locations in four counties. Products and services include grain marketing, crop nutrients, crop protection products, and seed sales along with custom application, crop scouting, and soil testing.

Canpotex to supply Bangladesh

The Honorable Ed Fast, Canada’s Minister of International Trade, today announced that Canada has signed a US$40-million contract to supply potash to Bangladesh from Canpotex Ltd. Minister Fast was joined by Minister Lynne Yelich, Member of Parliament Randy Hoback and Brad Wall, Premier of Saskatchewan.

The contract was negotiated between the Canadian Commercial Corp. and the Bangladesh Agricultural Development Corp. The contract includes an option for Canpotex to supply an additional US$20-million worth of potash.

Facilitated by the Canadian Commercial Corp., the Government of Canada’s international government-to-government contracting organization, the potash will be mined from Canpotex’s members’ mines and will be delivered to Bangladesh over the coming year.