All Posts from June 3, 2022

Kalium Updates on SOP Production Timeline

Australia, News, News Briefs, Specialty, Sulfate of Potash

Kalium Lakes Ltd., Balcatta, Western Australia, said on May 31 that it was able to validate its process design process during an April/May equipment testing program with production of approximately 400 mt of commercially saleable sulfate of potash (SOP) at its Beyondie SOP Project (BSOPP). The company said SOP production is building towards targeted first commercial sales in July 2022.

While Kalium achieved its first batch of SOP production last October (GM Oct. 8, 2021), difficulties intervened that required testing and a new production timeline (GM March 4, p. 31).

“We are very pleased that through recent equipment testing and the production of SOP we have been able to validate the overall process chemistry and plant design,” said Kalium Lakes’ CEO Len Jubber. “We are now focused on systematically addressing the remaining bottlenecks in the plant and progressively increasing production. Plant operations during 2022 will be variable, taking into account our need to conduct further mechanical debottlenecking activities and build KTMS inventory.

“Kalium Lakes is the first SOP producer in Australia, and we look forward to selling our first commercial production into the current extremely strong SOP price environment,” he added. “We believe the company has an exciting future, and we would like to thank all stakeholders, including shareholders, for their patience.”

The company said the SOP purification plant commissioning is proceeding as planned, with equipment testing well advanced and continuing into June/July 2022. Kalium said it has made significant progress in operational readiness with multiple appointments within the senior site team.

The company said the availability of sufficient KTMS (kainite-type mixed salts) to feed the plant is currently a production constraint; however, with improved pond operating procedures, it expects there will be sufficient KTMS by the end of August to commence the ramp up in production.

Until then, it plans to produce SOP at lower rates and undertake further optimization works during a plant shutdown in August, including the installation of a heat exchanger to allow improved operation during hot summer weather. Production will recommence in September, with progressive SOP output as the plant ramps up through to nameplate performance tests planned at the end of fourth-quarter 2022.

As previously outlined, Kalium expects the plant to be operating at an approximate 80,000 mt/y SOP production run rate by first-quarter 2023, with the targeted 120,000 mt/y run rate established by third-quarter 2023.

Kalium said discussions are advancing with debt providers, NAIF and KfW, and key offtake partner K+S Group on requisite funding initiatives in third-quarter 2022 and rescheduled SOP deliveries, respectively.

Teal Advances Green Ammonia Project in Quebec, Low-Carbon in Texas

Ammonia, Canada, Hydrogen, News, News Briefs, Texas

Teal Corp., Magog, Quebec, continues to advance its plans for an 800,000 mt/y ammonia plant at Sept-Iles, Quebec (GM April 1, p. 1), which it plans to have in production in the next 3-4 years.

The company has identified the site of the project, saying it has an agreement with SFP Pointe-Noire for a piece of land located in the Sept-Iles Industrial Port Zone near Pier 31, an available pier belonging to the Port of Sept-Iles. It is also in discussions with Hydro-Québec and the Government of Québec to obtain the energy block required to power the plant.

In addition, after two years of discussions with Quebec’s economic development agency, Société de Développement Économique de Uashat mak Mani-utenam (SDEUM), Teal submitted an official partnership proposal in January 2022 with the intention of having the organization as a shareholder in the project and actively participating in its development. It said the proposal was well received by the SDEUM.

“The project based in Sept-Iles represents a unique opportunity for the North Shore and for the province of Quebec,” said Teal President and CEO Jonathan Martel. “First, Teal’s production alone will be sufficient to meet the current demand for ammonia in the entire Quebec market. Moreover, the region’s major industries will be able to take advantage of the plant’s proximity to reduce their GHG emissions and decarbonize their operations by replacing hydrocarbons, particularly diesel and bunker fuel, with hydrogen and ammonia.”

Teal noted that it recently concluded a 15-year binding take or pay contract with Trammo Inc., New York City. It said the trader committed to first and foremost serve the Quebec market. Teal said while the local demand will be growing, excess production will be sold through Trammo’s channels.

“This agreement is key to financing Teal’s projects as it guarantees the sale of the entire production out,” said Martel.

“This is a pioneering Quebec project, close to the large energy intensive industries, to make green fuel available when they are ready to begin their energy transition,” added Philippe Machuel, Teal Vice President.

Teal and Trammo are working toward other low-carbon production facilities, with one targeted for Texas, where the feasibility study is nearly complete, the preferred site has a Memorandum of Understanding (MOU) in place, and the power supply strategy is in place with detailed terms and conditions. The next step is to begin the licensing and engineering phase.

Teal said both projects could eventually produce more than 500,000 mt/y of hydrogen and 2.5 million mt/y of ammonia with a very low carbon footprint, making Teal a Quebec leader in the global energy transition industry.

Yara Takes Step toward IPO

Ammonia, News, News Briefs, Scandinavia

The Board of Directors of Yara International ASA, Oslo, on June 2 signed a demerger and a merger plan for the internal reorganization and transfer of Yara’s Clean Ammonia (YCA) business to a wholly-owned subsidiary of Yara.

The internal reorganization is being implemented as a preparatory step for a potential initial public offering (IPO) of Yara Clean Ammonia (YCA) on the Oslo Stock Exchange.

Yara said on May 4 that a potential IPO was under consideration (GM May 6, p. 30) and that it would initiate an internal process to organize YCA assets, contracts, etc., into dedicated YCA entities/subsidiaries that, for now, will remain under Yara’s ownership as a preparatory step in the event of a potential future IPO. The reorganization is not expected to trigger any material tax impact.

Gensource Potash Corp. – Management Brief

Canada, Management Briefs, Potash

Stephen Dyer, who joined Gensource Potash Corp.’s Board of Directors last year (GM April 23, 2021) has moved up to the role of Non-Executive Board Chairman, which was the initial plan as the company moves closer to becoming North America’s next fertilizer producer.

The company announced on May 31 that in addition to Dyer, other members of the Board re-elected include Alton Anderson, Michael Ferguson, Michael Mueller, Amy O’Shea, and Calvin Redlick.

Gensource also re-appointed its slate of officers, with Ferguson as President and CEO; Anderson as CFO; Robert Theoret as Vice President, Finance and Business Development; and Deborah Morsky as Vice President, Corporate Services and Corporate Secretary.

Rayonier Advanced Materials Inc. – Management Brief

Florida, Management Briefs

Rayonier Advanced Materials Inc., Jacksonville, Fla., on May 31 announced that De Lyle W. Bloomquist has been appointed President and CEO, effective immediately. He succeeds Vito J. Consiglio, who has stepped down as President and CEO and as a member of the company’s Board of Directors, with the mutual agreement of the Board. In connection with Bloomquist’s appointment, the Board named Lisa M. Palumbo as Non-Executive Chair of the Board.

Bloomquist has served on the company’s Board since 2014 and was named Non-Executive Chair of the Board in May 2020. The company said he has decades of domestic and international leadership experience in the chemicals, minerals, and materials industries, including in finance, sales, logistics, operations, IT, strategy, and business development capacities. He most recently served as a partner at Windrunner Management Advisors LLC, a management advisory services business, and prior to that served as President, Global Chemical Business, of Tata Chemicals Ltd., and President, CEO, and Director of Tata Chemicals North America Inc.

Palumbo served as the Senior Vice President, General Counsel, and Secretary of Parsons Brinckerhoff Group Inc., a global consulting firm providing planning, design, construction, and program management services for critical infrastructure projects, from 2008 until her retirement in January 2015. Prior to that, she served as Senior Vice President, General Counsel, and Secretary of EDO Corp. (a defense technology company) from 2002-2008. She has also held senior roles at Moore Corp., Rayonier Inc., and Avnet Inc.

Palumbo holds bachelor’s and juris doctorate degrees from Rutgers University.

Togliatti Pipeline Damaged, Leak Reported

Ammonia, News, News Briefs, Russia, Ukraine

The Togliatti-Odessa ammonia pipeline was damaged on Monday, May 30, and a small leak developed, according to Ukraine’s Head of Donetsk Regional Military Administration Pavlo Kyrylenko, as reported by Interfax-Ukraine and other media outlets. Kyrylenko said this branch of the pipeline had been closed since 2014.

The 7.5 kilometer section of pipeline, however, still contained an estimated 250 mt of ammonia. A cloud was moving above the soil from the village of Maiske towards Bakhmut. The cloud had an estimated radius of four kilometers. Officials notified the local population. There was no information about injuries or casualties.

Ukrinform, a Ukrainian news platform, attributed the damage to actions by Russian forces.

Senators Urge USTR to Act on Long-Term Fertilizer Needs

Featured, News, U.S.

U.S. Senators Roger Marshall, M.D. (R-Kan.), Joni Ernst (R-Iowa), Chuck Grassley (R-Iowa), and Deb Fischer (R-Neb.) on May 31 sent a letter to U.S. Trade Representative Katherine Tai urging her to focus on meeting the long-term fertilizer needs of the U.S.

“We write today to urge you to develop and begin executing a strategic plan for the long-term stability of fertilizer trade for our farmers and ranchers,” said the senators. “Vladimir Putin’s war in Ukraine is sparking concerns over famine in Africa and the Middle East.

“Societies dependent on agriculture are keenly aware of the threat of food insecurity,” they continued. “Big agrarian nations like Brazil are already acting to re-draw global trade routes, especially regarding fertilizer, to ensure the productivity of their nation and address the needs of a starving world. We must do the same.”

The senators noted that several major global producers of different crop nutrients – China, Russia, and Belarus – have proven to be unreliable trading partners, and that the U.S. International Trade Commission has imposed duties on Morocco, a major phosphate producer, and is in the process of doing so on UAN from Trinidad and Tobago.

“We cannot be left scrambling in 2023 and beyond to find crop nutrients, we need to begin working today to solve this inevitable challenge,” they added.

“We believe enhancing our fertilizer trading relationship with Canada should be a priority of the administration,’ said the senators. “USTR should also consider negotiations to eliminate the cross-border vaccine mandate between the U.S. and Canada, which is hindering the movement of goods.

“Second, we believe USTR should engage with China to reduce or eliminate their fertilizer export restrictions, which decrease the supply of phosphates on the global market, driving prices up. Finally, we strongly encourage you to use the tools at the administration’s disposal to eliminate barriers to the importation of crop nutrients, and to negotiate to ensure fertilizer supplies are abundant and affordable here in the U.S.,” they concluded.

Gensource Completes Geotechnical Field Program

News, News Briefs, Potash, Saskatchewan

Junior miner Gensource Potash Co., Saskatoon, reported on May 26 that it has completed the geotechnical field program at its potash project near Tugaske, Sask.

The company said the fieldwork represents an important pre-development milestone and that the work will define the subsurface soil strata, including material properties and existing conditions for locations selected for construction of the plant site and wellfield area, including building and equipment foundations, access roads, rail, buried pipelines, etc.

JERA Speeds Up Ammonia Use

Ammonia, Japan, News, News Briefs

JERA Co. Inc., Tokyo, Japan’s largest electricity generator, is accelerating the schedule for co-firing one of its coal power plants with ammonia, according to a Bloomberg report.

JERA and IHI Corp., Tokyo, will start a demonstration project to co-fire a unit at its Hekinan Thermal Power Station with 20% fuel ammonia by the year ending March 2024, advancing the schedule by a year (GM May 28, 2021). The companies decided to accelerate the demonstration project because they have been able to install burners, tanks, pipes, and other equipment faster than they expected.

JERA, a joint venture between Tokyo Electric Power Company Holdings and Chubu Electric Power Co., aims to be carbon neutral by 2050. The power producer is targeting having its coal power plants operate on 50% ammonia by the first half of the 2030s and shift to 100% of the carbon-free fuel by mid-century.

JERA also announced earlier in February that it will conduct an international competitive bid for ammonia procurement, as enormous volumes are expected to be needed for generating power.

Nuinsco Announces Initial MRE of Ontario Rare Earth/Phosphate Project

Canada, News, News Briefs, Phosphate

Nuinsco Resources Ltd., Toronto, on May 31 announced an initial Mineral Resource Estimate (MRE) on its Prairie Lake Critical Minerals and Phosphate Project located near Terrace Bay, Ont. The project, which contains total rare earth oxides (TREO), niobium, and phosphate has an MRE consisting of 15.6 million mt Indicated Mineral Resource and 871.8 million mt Inferred Mineral Resource in accordance with National Instrument 43-101. A Preliminary Economic Assessment on the project will commence shortly.

“The suite of economically significant mineralization identified in the MRE includes neodymium, praseodymium, niobium, scandium, and phosphate; demand for all is projected to steeply increase over the coming years through expanding electrification and implementation of “green” technologies to combat climate change, and to sustain and improve agricultural productivity globally,” said Nuinsco CEO Paul Jones.

The company noted that the Prairie Lake site is close to the TransCanada Highway, rail, power and shipping infrastructure.

Nuinsco is currently focused on prospective opportunities in Canada and Egypt. It currently has four projects in Ontario. In addition to Prairie Lake, it has the Sunbeam gold property near Atikokan, the Dash Lake gold property near Terrace Bay, and the Zig Zag Lake property (lithium, tantalum) near Armstrong. In addition, Nuinsco has an agreement for gold exploitation at the El Sid project in the Eastern Desert of Egypt.

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