Dry Fertilizer Barge Rates
| 10/29/2021 | Last Week | |
| Memphis | 11.00 | 11.00 |
| St. Louis | 11.00 | 11.00 |
| Peoria | 15.00 | 15.00 |
| Cincinnati | 16.50 | 16.50 |
| St. Paul | 19.50 | 19.50 |
| Catoosa/Inola | 20.50 | 20.50 |
All Posts from October 29, 2021
BLM Seeks Comment on Proposed Itafos Mine
The Bureau of Land Management is seeking public comment on a draft environmental impact statement that analyzes a plan submitted by Itafos Conda for its proposed Husky 1 North Dry Ridge (H1/NDR) Phosphate Mine about 16 miles northeast of Soda Springs, Idaho.
Officials with Houston-based Itafos Inc. said publication of the Draft EIS is a significant milestone for Conda’s mine life extension. Itafos proposes to develop several phosphate leases that the company holds. The statement provides a range of management options to address the proposed mine’s environmental impacts.
Phosphate mines in Southeast Idaho, primarily in Caribou County, generate 22 percent of the nation’s phosphate supply and 2 percent of the world’s supply. At capacity, H1/NDR would generate 40 percent of Idaho’s phosphate production, BLM officials said.
The Husky 1 North Dry Ridge Mine would be an open pit mine similar to Itafos’ existing Rasmussen Valley Mine in the region. If approved, operations at the new mine would begin in time to allow a transition from the Rasmussen Valley Mine before its ore is depleted, ensuring a seamless supply of phosphate and continuing employment for hundreds of miners. Proposed mining activities would affect about 1,145 acres, mainly in the Caribou-Targhee National Forest.
Itafos operates the former Agrium phosphate processing complex at Conda, a short distance north of Soda Springs on Highway 34. It previously identified H1/NDR as its preferred course for extending Conda’s mine resources through mid-2026 following completion in 2019 of an independent Golder Associates Ltd. technical report encompassing Conda and Paris Hills deposits.
“The publication of the Draft EIS is an important step in executing on our key objective of extending Conda’s mine life through permitting and developing H1/NDR,” Conda General Manager Tim Vedder said. “Conda has a more than 30-year track record of safe and reliable operations, and we look forward to continuing to serve our customers for many years to come.”
In January 2018, Itafos acquired the Conda Phosphate Operations near Soda Springs for $100 million from Agrium, which now is part of Nutrien Ltd., which has retained all the historic and depleted legacy mine sites that belonged to Agrium. Operating as NuWest, Nutrien will be responsible for any mine cleanup activities at those sites.
CL Fertilizers Holding, an affiliate of Castlelake, a global private investment company, is Itafos’ principal shareholder. Itafos is a Delaware corporation based in Houston. Conda has a production capacity of about 550,000 mt/y of MAP, MAP with micronutrients, superphosphoric acid, merchant grade phosphoric acid, and ammonium polyphosphate.
The Draft EIS was prepared under the National Environmental Policy Act (NEPA) by the U.S. Department of the Interior’s BLM and the U.S. Department of Agriculture Forest Service. BLM plans to hold a virtual public meeting on Monday afternoon, Nov. 8, to provide information about the Draft EIS and the public comment process. Comments may be submitted through Monday, Dec. 6.
Nuberg Awarded Sulfuric Acid Plant EPC Contracts in Egypt, Ethiopia
Nuberg EPC, New Delhi, India, on Oct. 19 announced it was awarded the rights to two sulfuric acid construction projects on an EPC and LSTK basis. The first, a 182,500 mt/y plant in Gamasa City, Egypt, was scheduled for delivery in 22 months, while the second, a revamp project producing 18,250 mt/y of sulfuric acid and 14,600 mt/y of aluminum sulfate in Oromia, Ethiopia, was contracted to deliver in 15 months.
Both projects are slated to utilize the Double Contact Double Absorption (DCDA) production process, in which sulfur dioxide (SO2) and sulfur trioxide (SO3) pass through absorption towers twice.
Nuberg has successfully completed “more than seven” sulfuric acid plants, according to the company’s website, delivering projects in Saudi Arabia, India, Egypt, Turkey, Bangladesh, and Oman. The newly-announced Gamasa City facility will be Nuberg’s fifth turnkey project in Egypt, the company said, a list that includes caustic soda, calcium chloride, and sulfuric acid plants.
“The whole industry faced challenging times (in the) last one year, yet we managed to deliver our commitments on time,” said Nuberg Managing Director A.K. Tyagi. “We will look forward to delivering ahead of schedule for an early start to our clients.”
Compass Minerals – Management Brief
Compass Minerals, Overland Park, Kan., on Oct. 27 announced several changes to its senior management team to enable support of the company’s long-term strategic growth.
Lorin Crenshaw is joining the company as CFO, effective Dec. 1, 2021. The company said he brings more than 25 years of diversified financial experience, including leadership positions in the lithium industry.
He was most recently CFO at Orion Engineered Carbons SA, a global supplier of specialty and high-performance carbon black, since 2019. Previously, he served in several financial leadership roles from 2009-2019 at Albemarle Corp., a global specialty chemicals company and producer of lithium, bromine, and catalyst solutions, including as CFO of Albemarle’s global lithium business from 2016-2019, and in prior years as Treasurer and Head of Investor Relations.
Prior to Albemarle, he spent over 10 years as an equity and debt investor, respectively, at Citigroup Asset Management and PGIM Private Capital, formerly Prudential Capital Group.
Crenshaw earned a B.S. in business administration from Florida A&M University and an MBA from Columbia University.
At Compass, Crenshaw will be responsible for all aspects of financial management and will also lead the company’s global sourcing and procurement functions.
Effective upon Crenshaw joining the company, current CFO James D. “Jamie” Standen will transition roles to serve as Chief Commercial Officer. He has been CFO since 2017 and joined the company in 2006 as Assistant Treasurer.
Prior to joining Compass, he spent six years in various roles at Kansas City Southern and two years with the public accounting firm Mayer Hoffman McCann PC. He earned a B.S. in accounting with an emphasis in finance from the University of Kansas.
As a result of these appointments, current Chief Commercial Officer Brad Griffith has departed the company effective immediately to pursue other opportunities.
In other management news, Compass has also announced that Chris Yandell will be joining the company as Head of Lithium, effective Nov. 8, 2021. In this senior management role, he will lead the development and implementation and coordinate the strategic direction for the company’s lithium business.
The company said Yandell brings broad-based leadership experience in operations, commercial, supply-chain, and strategic planning, having served the last 15 years in varying roles of increasing responsibility with Albemarle.
Most recently with Albemarle, he served as Chief Commercial Officer for refining catalysts and previously as Vice President of Lithium Operations. Yandell also served in operations and engineering positions with Praxair Inc., since acquired by Linde plc, and BASF.
A former non-commissioned officer in the U.S. Marine Corps, he earned a B.S. in chemical engineering and an MBA, both from Louisiana State University.
Corteva Inc. – Management Brief
The former head of fertilizer giant Nutrien Ltd., Saskatoon, has been tapped to join Corteva Inc., Wilmington, Del., as its new CEO, replacing the seed and chemical company’s longtime boss following an activist push, according to Bloomberg. Chuck Magro, who served as Nutrien’s CEO from 2018 until April, will take the helm at Corteva on Nov. 1.
Corteva CEO James Collins, who announced his retirement in June after more than 37 years with Corteva, will leave at the end of 2021.
Magro joins Corteva after activist investor Starboard Value LP attempted to take control of the Board of Directors to oust Collins earlier this year, saying management had been taking credit for achieving milestones without improving profitability. In March, three new Independent Directors suggested by Starboard were added to Corteva’s 12-member Board.
AgGateway – Management Brief
AgGateway, Arlington, Va., announced on Oct. 28 that President and CEO Wendy Smith is retiring effective Dec. 31, 2021, and that current Executive Vice President and Chief Operating Officer Brent Kemp will move into the role of AgGateway President and CEO beginning Jan. 1, 2022.
Smith has served as President since 2015, and has been involved with AgGateway since its founding in 2005. The company said during her tenure AgGateway has expanded its areas of involvement and made significant strides in the areas of interoperability, sustainability, and traceability. In 2020 Smith oversaw AgGateway’s transition to a global organization, with regional groups in North America, Latin America, and Europe.
Kemp joined AgGateway in 2014 as EVP and COO, and last year also took on the role of North America Regional Director. Prior to joining AgGateway, he served as Manager of Process Development with Southern States Cooperative, where he implemented electronic messaging for multiple business lines across a 15-state geography to achieve process automation.
Kemp was active in AgGateway while at Southern States, serving in multiple leadership roles and receiving the AgGateway Ron Storms Leadership Award in 2010.
AgGateway is a global, non-profit organization whose members develop standards and other resources so that companies can rapidly access information. Its 200 member companies include ag retailers, distributors, manufacturers (equipment, seed, crop nutrition, crop protection, etc.), grain and feed companies, precision ag providers, specialty chemical manufacturers, and software and data service providers.
Martin Cites ATS for Strong Quarter; Turnaround Planned for November
Martin Midstream Partners LP (MMLP), Kilgore, Texas, credited ammonium thiosulfate (ATS) for much of the improvement in its fertilizer business in the third quarter. MMLP reported a doubling of the third-quarter operating income in its Sulfur Services segment, which includes both sulfur and fertilizer (GM Oct. 22, p. 26).
“Fertilizer had a very strong quarter, considering the third quarter is our seasonally weakest quarter,” said President and CEO Robert Bondurant in a third-quarter earnings call Oct. 21. “Cash flow for fertilizer was $2.2 million in the third quarter compared to $0.6 million a year ago. We had very strong demand in our ATS product line this year compared to a year ago, accounting for the majority of the improvement.
“Looking forward to the fourth quarter, we plan to take the ATS production facility down for turnaround in November,” he added. “So we will have lower production volumes of ATS, which will limit some of our fixed cost absorption. Offsetting this could be early demand from farmers for AMS product, which we manufacture at Plainview.”
Company-wide, Bondurant said MMLP exceeded its internal EBITDA forecast by over $2 million. “As a result of this stronger third quarter performance, I believe we are positioned to exceed the range of our disclosed EBITDA forecast of $95-$102 million for 2021,” he said. “Our third quarter performance, along with the anticipated fourth quarter performance, will be a significant catalyst to helping us achieve our deleveraging goals. This should set us up for a beneficial refinancing of our high-cost secured notes next fall.”
Gensource Seeks London Listing, Eyes International Expansion
Junior miner Gensource Potash Corp., Saskatoon, reported on Oct. 25 its intention to seek admission of its common shares to trading on the London Stock Exchange’s AIM market. It expects that admission will become effective in early November, resulting in the common shares being “dual listed” on the AIM and the TSX Venture Exchange (TSXV).
Gensource said the new listing will allow it to take advantage of exposure to the U.K. and European financial markets and the increased liquidity expected with an additional listing on AIM.
With Gensource’s relationship with Germany-based Helm Ag, the offtaker of its Tugaske Potash Project, and two mandated lead debt arrangers, KfW IPEX-Bank and Société Générale, also headquartered in Europe, the company said its Tugaske Project has generated interest from U.K. and European investors.
Additionally, Gensource said its business plan is to build future potash production modules around the world, which lends itself to obtaining increased liquidity through the global reach of an AIM listing.
Compass Updates on Lithium Project
Compass Minerals, Overland Park, Kan., reported on Oct. 19 the successful, third-party conversion testing of its lithium brine resource into both lithium carbonate and battery-grade lithium hydroxide, representing a significant milestone in its previously announced lithium development project.
The company said it engaged Veolia Energy, an established technology provider, to conduct lithium chloride to lithium hydroxide conversion testing utilizing a proven, commercially viable conversion process. The company believes this is the first known conversion to battery-grade lithium hydroxide from the sustainable lithium brine resource originating from the Great Salt Lake.
It said at a concentration of >56.5 percent lithium hydroxide monohydrate, the conversion sample meets established battery-grade specifications for the U.S. domestic electric vehicle (EV) and energy storage markets. Compass believes this achievement, and the resulting supply it is expected to help enable, is critical for U.S. domestic production of advanced battery materials and support of a growing domestic EV fleet. As previously disclosed, the company expects to enter the market with a battery-grade lithium hydroxide product by 2025.
“When we first announced the identification of a readily available, 2.4 million ton lithium brine resource, we emphasized that we are evaluating multiple paths forward for development, potential partnerships, and product selection to ensure optimal shareholder value. While that work continues, our progress to date puts us firmly on track for market entry with a battery-grade lithium product by 2025,” said Kevin S. Crutchfield, President and CEO.
“As we continue to assess potential DLE technology partners and commercial opportunities, we remain committed to responsible stewardship of this exciting and sustainable resource. We look forward to providing future updates as we achieve additional milestones in the coming months,” Crutchfield added.
As previously announced, Compass is targeting an annual production capacity of approximately 20,000-25,000 mt of lithium carbonate equivalent of battery-grade lithium, with up to 65 percent of the future production derived from brine that has already been extracted from the Great Salt Lake and in varying stages of concentration within the company’s existing ponds at its active Ogden, Utah, solar evaporation site.
The company sustainably manages 160,000 acres of leasehold on the bed of the Great Salt Lake, together with held water rights, 55,000 acres of existing ponds, and active mineral extraction permissions.
The company is currently undertaking a formal life cycle assessment of various lithium development scenarios with Minviro Ltd. to help quantify any environmental impacts associated with the project and help identify opportunities to further minimize the project’s environmental footprint.
Peru Coffee Exports, Output Dimmed by Shipping, Fertilizer Woes
Peruvian exports are likely to drop this year because of shipping bottlenecks while output may suffer next year from increasing costs, in particular fertilizer, a growers’ group told Bloomberg. Shipments may slide to 3.25 million bags in 2021 from 3.6 million last year, said Lorenzo Castillo, General Manager of the National Coffee Board.
Castillo said shipments are delayed by about three months, and shipping companies that have big deals with large trading houses tend to give priority to them. However, he said production rose 3.3 percent this year to about 4.1 million bags, and could repeat that next year, depending on rains and input application
He said the cost for urea tripled to $60 per 50 kg/bag, and those imports are behind also about three months amid tight supplies in China. “So far, flowering has been good and weather mostly favorable; the problem is the high fertilizer cost,” Castillo added.
He said most of the crop is grown at 1,200 meters above sea level or more, and climate change, with volatile weather and temperatures, has made disease outbreaks more common, making fertilizer more necessary. He said the coffee area planted has slid to 380,000 hectares from peak of 425,000 in 2012 after prolonged low prices pushed some farmers to switch crops, including to coca, the raw material for cocaine.
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All information has been obtained by Green Markets from sources believed to be reliable. However, because of the possibility of human or mechanical error by our sources, Green Markets or others, Green Markets does not guarantee the accuracy, adequacy, or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information.
For additional details visit our Terms of Use.