All Posts from November 30, 2018

Martin Midstream Partners LP – Management Brief

Management Briefs

Martin Midstream Partners LP (MMLP), Kilgore, Texas, has announced the retirement of Billy Wood, general manager, operations, for Martin’s Sulfuric Acid and Ammonium Sulfate Production Facility, Plainview, Texas, effective Nov. 30, 2018.

Martin noted that Wood has had a long and successful career serving the agricultural community, and that before joining the company he also worked for Goodpasture Fertilizer and Chem Nut Inc. He currently serves on the board of the Texas Agriculture Industries Association (TAIA), and has contributed to Texas agriculture his entire career.

“We wish Billy all the best in this new chapter of his life and career,” said Martin Fertilizer Vice President Ron Garner. “He has been a valuable asset to Martin, and he will surely be missed.”

Agrinos – Management Brief

Management Briefs, Specialty

Agrinos, Davis, Calif., a biological crop input provider, said Nov. 27 that Matthias Schulze will join the company as executive vice president, Europe and Africa. He will also serve on the company’s global leadership team.

“We are very pleased to have Matthias join our team and lead operations in these important markets,” said Kevin Helash, Agrinos CEO. “His depth of experience and expertise in management, team leadership, and agriculture will help drive our business forward in Europe and Africa.”

Agrinos said Schulze brings more than twenty years of agriculture industry experience to the position. He previously served as director of sales and marketing in Europe for K+S Kali GmbH.

Anuvia™ Plant Nutrients – Management Brief

Management Briefs, Specialty

Anuvia™ Plant Nutrients, Zellwood, Fla., on Nov. 27 announced the addition of three new board members: Bill Buckner, CEO and president of the Noble Research Institute and Samuel Roberts Noble Foundation; Kim McConnell, a founder and former CEO of AdFarm; and Ben Belldegrun, managing director and co-founder of Pontifax AgTech.

“For any company, but especially a young technology-driven company such as Anuvia, an active, contributing board is critical to our success,” said Amy Yoder, Anuvia CEO. “We rely on member input and guidance as we make significant inroads with distribution in domestic retail and consumer markets, and as we establish collaborative relationships both in the U.S, Europe, Asia, and Africa. Over the next several years, our growth will be exponential. Building a strong board now with talent, experience, foresight, and perspective such as represented with these three gentlemen will be a tremendous asset as we make giant strides forward.”

Prior to his current president and CEO position, Buckner worked for Bayer in their Animal Health and CropScience divisions, with his last position being president/CEO of Bayer CropScience LP and North American regional head from 2006-2011. He currently serves on the boards of the Soil Health Institute, Wilbur-Ellis Co., Trace Genomics Inc., and the Farm Foundation. Buckner received his bachelor’s degree in agricultural economics from the University of Missouri.

McConnell is a founder and former CEO of AdFarm, one of the largest agricultural marketing communications firms in North America, and one of the first Canadian agencies dedicated to agriculture and agribusiness. He remains associated with AdFarm as a strategic advisor. For his contributions to agriculture, McConnell received the Order of Canada, the top level of recognition to those who have demonstrated the highest degree of merit to Canada and humanity. He is also the recipient of the Canadian Agri-Marketing Association Agri-Marketer of the Year award, and a member of the Canadian Agricultural Hall of Fame.

Belldegrun is the managing partner and co-founder of Pontifax AgTech, a growth capital fund dedicated to food and agriculture technology. Prior to launching Pontifax AgTech, he was a co-founder and managing partner of Lodestone Natural Resources. Belldegrun has also worked as a portfolio manager at Brevan Howard Asset Management, concentrating on agricultural investments within the $300 million Natural Resources Fund. He has more than 12 years of successful agricultural investing experience. He is a director of Concentric Ag and Tropic Biosciences UK LTD, and holds a B.A. in economics from Columbia University and an MBA from the UCLA Anderson School of Management.

Bunge Limited – Management Brief

Management Briefs

Bunge Limited, White Plains, N.Y., announced on Nov. 27 that Robert Coviello has been named executive vice president and chief growth and strategy officer, effective January 1, 2019, reporting to CEO Soren Schroder.

“Our industry faces countless opportunities for growth, differentiation, and disruption, and Rob’s appointment to this role will advance our efforts to build on our strengths and further capitalize on these opportunities,” said Schroder.

Coviello currently serves as Bunge’s managing director, Southeast Asia and China. He joined the company in 2003, and has held a variety of commercial leadership positions in Asia, Europe, and the U.S. Prior to Bunge, he served in trading roles at Cargill in the U.S. Coviello holds a B.A. from Dartmouth College and an MBA from Harvard Business School.

Draft EIS Released on Simplot Mine

News, Phosphate, Phosphate Rock, Western

The Caribou-Targhee National Forest and the U.S. Bureau of Land Management’s (BLM) Idaho Falls District have jointly released a draft environmental impact statement (EIS) analyzing different alternatives for the J.R. Simplot Co.’s proposed Dairy Syncline open pit phosphate mine that ultimately would replace Simplot’s Smoky Canyon Mine east of Soda Springs, Idaho, and west of Afton, Wyo.

It is estimated that the Smoky Canyon Mine – Idaho’s largest mine, stretching 22 miles in distance – could have 10 years of phosphate ore left to extract before Simplot must invest tens of millions of dollars into Dairy Syncline’s mining, milling, and pipeline operations, including decommissioning Smoky Canyon. The Western Phosphate Field overlaying Idaho’s Caribou County is the largest remaining resource in the U.S. outside of Florida, Tennessee, and the Carolinas.

The preferred Dairy Syncline alternative in the draft EIS would provide a proposed increase of 420 acres of public land between the BLM and U.S. Forest Service, with Simplot donating parcels that would provide increased public access for recreation activities and hunting opportunities on big game winter range.

Simplot has notified the agencies of its intent to exercise its mining and development rights granted in leases for the Dairy Syncline mining and reclamation project. It proposes to disturb about 2,830 acres of surface through the creation of five open pits, external overburden disposal areas, access roads, a transmission line, an ore slurry pipeline, an industrial water well, a mill, and a lined tailings pond, plus other ancillary facilities.

About five miles of a new segment of slurry pipeline would connect with Smoky Canyon’s existing 83-mile slurry line, which feeds Simplot’s Pocatello phosphate fertilizer plant.

To maximize recovery of phosphate from the leases, Simplot proposes to enlarge existing leases by 722 acres through lease modifications. Special-use authorizations are needed for ancillary facilities located off lease on National Forest Service lands. The tailings pond would be on lands acquired from the BLM and Forest Service.

Simplot proposes a 1,142-acre direct land sale for the BLM portion of the tailings pond and adjacent facilities. The company would buy the land for full market value and donate a 440-acre parcel to BLM to minimize potential impacts to the public and to Shoshone Bannock tribal treaty rights stemming from the loss of federal land.

An amendment to a resource management plan is required to complete the sale. In addition, a land exchange is proposed for Simplot to acquire the Forest Service portion of the tailings pond – 632 acres of Forest Service lands for a 640 acre Simplot parcel. The Forest Service land use plan also would be amended.

The BLM and Forest Service will make separate, coordinated decisions related to the proposed project. BLM, the lead agency, will decide whether to approve the mining and reclamation project and/or alternatives, enlarge or modify existing leases, approve land tenure actions as proposed or modified, issue rights of way for infrastructure if the land sale is not approved, and/or accept Simplot’s 440-acre parcel donation.

Federal officials said the EIS seeks a balance between resource extraction and conservation while providing opportunities for high-paying jobs. While a range of alternatives are examined, the proposed action, if approved, would allow the Dairy Syncline Mine to maintain more than 250 mining jobs for an additional 30 years and aid the region by providing $25 million in annual payroll, payment of taxes, royalties, and purchases.

The Forest Service will recommend to BLM surface management options and a selected alternative on leased Forest Service lands, and decide whether to approve the land exchange, accept the parcel donation, make roadless area boundary changes, approve amendments to a forest travel management plan, and/or approve amendments to its land use plan to add management prescriptions and designate power corridors.

The Idaho Department of Environmental Quality, Idaho Office of Energy and Mineral Resources, Idaho Department of Lands, and the U.S. Army Corps of Engineers are cooperating agencies in preparing the EIS. Additional permits will be required by other agencies.

The BLM and Forest Service are seeking public input to ensure that all aspects of the proposed mining and reclamation plan have been thoroughly analyzed. Public meetings will be in Pocatello on Jan. 8, Georgetown on Jan. 9, and Soda Springs on Jan. 10.

 

SQM 3Q Income Off on Slow Lithium Ramp-Up; Specialty Fertilizer Volumes, Revenues Up

Chile, Lithium, Potash, Potassium Nitrate, Specialty

SQM Inc., Santiago, reported a 26 percent drop in third-quarter net income, to $83.5 million ($0.32 per share) on revenues of $543.2 million from the year-ago $112.9 million ($0.43 per share) and $558.7 million, respectively, citing a delay in ramping up new lithium production, as well as logistics issues in Chile.

“During 2017, we announced an important lithium expansion near Antofagasta, which would allow us to increase our capacity by almost 50 percent,” SQM CEO Patricio de Solminihac explained. “This project, which entailed a complete overhaul of our existing plant, had a quick timeline, and a very low capex.

“The commissioning of the fully upgraded plant, as previously announced, has been more challenging than expected, impacting our ability to produce high-quality lithium during the third quarter, affecting our sales volumes. We are working diligently to resolve these issues as soon as possible,” said de Solminihac. He added that the ramp-up delay will likely impact fourth-quarter lithium and derivative sales volumes, delaying part of these volumes to first-quarter 2019.

Solminihac told analysts in a Nov. 22 earnings call that the company would solve its lithium production issues and reach a 70,000 mt/y nameplate capacity in the near term. “We believe fourth-quarter sales volumes will be significantly higher than third-quarter, but less than originally expected, letting us reach approximately 45,000 mt this year.”

“As we reach the end of the year, we have been positively surprised by the demand growth in the lithium market, especially lithium hydroxide,” he added. “We believe that total lithium demand growth will surpass 25 percent this year. As a result, prices in the lithium market remain strong, our average prices during the third quarter remained relatively flat compared to the second quarter. We believe that the prices reported during the fourth quarter will be similar to the third quarter.

“We have seen positive trends in our other business lines as well,” de Solminihac continued. “Prices for potassium chloride in the third quarter increased over 15 percent when compared to last year. Specialty plant nutrient sales volumes increased almost 10 percent compared to the third-quarter 2017, and iodine prices exceeded expectations, reaching almost US$25/kg. We believe iodine and derivatives sales volumes could surpass 13,500 mt this year.”

Third-quarter Specialty Plant Nutrition volumes were up 10 percent and revenues 5 percent. Volumes were 288,700 mt, up from 263,600 mt, while revenues were $194.9 million versus $185.6 million.

Potassium nitrate-based products saw only a 2 percent volume increase for the quarter, to 160,800 mt from 157,400 mt, though they have had a 19 percent uptick year-to-date. SQM noted that there has been less supply in the market in recent quarters, as a main competitor has been ramping up capacity.

SQM said it had been able to supply the additional needs of the market. The company believes its 2018 sales volumes for the product line will be up 15 percent, and that the overall market will grow 6 percent this year.

Within the Specialty segment, Specialty Blend volumes were up 16 percent, to 84,200 mt from 72,700 mt.

Third-quarter Potash-based volumes and revenues were both down, as the company continues to favor enhanced lithium production over potash. Volumes were off 39 percent, to 249,300 mt from 406,100 mt, while revenues were down 29 percent, to $80 million from $113 million. SQM said third-quarter sales volumes were down 14 percent from the second quarter, and it expects the fourth quarter to be lower. It projects full-year 2018 sales volumes of 900,000 mt, and expects 2019 to be lower.

Third-quarter Lithium-based volumes were off 27 percent, to 9,300 mt from 12,700 mt, while revenues were down 9 percent, to $152.8 million from $167.8 million, respectively.

SQM nine-month net income was up at $331.2 million ($1.26 per share) on revenues of $1.7 billion, compared to the year-ago $317.2 million ($1.21 per share) and $1.58 billion, respectively.

Nine-month Specialty Plant Nutrition volumes and revenues were both up 19 percent. Volumes were 844,800 mt compared to 712,000 mt, while revenues were $607.3 million versus $511.4 million. Potassium nitrate-based products also saw a 19 percent uptick in volumes, to 535,000 mt from the year-ago 448,700 mt. Specialty Blends were up 18 percent, at 180,100 mt from 152,200 mt.

Nine-month Potash-related volumes were down 35 percent, to 702,300 mt from the year-ago 1.08 million mt. Revenues were down 27 percent, to $219.8 million from $301 million.

Nine-month Lithium-based volumes were down 17 percent, to 30,400 mt from the year-ago 36,500 mt. They were 16 percent less than second-quarter volumes. Revenues were up 8 percent, to $500.9 million from $465.2 million.

Sirius Completes Cibra Investment

England, News, News Briefs, Specialty

Sirius Minerals Plc, Scarborough, England, announced on Nov. 26 that it has completed the acquisition of a 30 percent equity interest in each of the Cibra Group Companies for 95,000,000 fully paid ordinary shares in Sirius (GM Sept. 21, p. 1). Sirius said this strategic investment is linked to a supply agreement with the Cibra Group Companies for the supply and resale of Poly4 into Brazil and certain other countries in South America. As part of the strategic investment shareholder arrangements, Sirius has elected to appoint Chris Fraser to the board of both Cibra Group Companies, with immediate effect.

Sirius said an application has been made for 95,000,000 ordinary shares in the company to be admitted to the premium listing segment of the Official List of the Financial Conduct Authority (FCA) and to trading on the London Stock Exchange plc’s main market for listed securities. Dealings are expected to commence at 8.00 am Nov. 27, 2018. The relevant shares will rank pari passu in all respects with all existing ordinary shares in the company. The shares are subject to a lock-up period of 12 months.

Sirius said after Nov. 27 it will have 4,797,057,259 ordinary shares in aggregate, each with equal voting rights. No shares are held in treasury.

MMA, TFI to Partner; Beckley to Retire

News, News Briefs, Specialty

The Micronutrient Manufacturers Association (MMA) has announced plans to enter into a partnership with The Fertilizer Institute (TFI). Under the partnership agreement, members of the MMA will become TFI members effective Jan. 1, 2019. The MMA will continue to operate as a committee within TFI, with regularly scheduled meetings.

“Micronutrients are essential to plant nutrition and play a key role in nutrient management planning under the 4R (use of the right fertilizer source, right rate, right time, and right place) framework,” said TFI President and CEO Chris Jahn. “We are eager to hit the ground running and grow support of this vital sector of the industry through TFI’s top notch programs.”

“The Micronutrient Manufacturers Association mission is to promote the value of micronutrients to diverse groups in our society. The audience includes growers, agronomists, agribusiness retailers, consumers, legislators, dieticians, health care professionals, and environmentalists,” said MMA Chairman Dale Edgington. “This new partnership with TFI will expand the resources we have to tell the important story of fertilizers part in feeding the world.”

“Our industry is at its best when we pool our resources to achieve shared goals,” added Jahn. “We extend our sincere thanks to MMA’s members for pursuing this avenue of cooperation and engaging with the rest of TFI’s membership as a common voice for the fertilizer industry.”

“On behalf of MMA’s members, I would like to extend my thanks to Steve Beckley, who is retiring after having managed MMA over the past 10 years,” said Edgington. “We look forward to engaging with the wider membership of TFI and furthering our common goals of educating consumers and public policy makers about the benefits of balanced nutrition for crops and the impact that all 17 essential elements have on society and the environment.”

Algeria, China Sign $6 B Phosphate Deal

China, Featured, News, North Africa, Phosphate

Algeria’s Sonatrach SPA and China’s CITIC Construction Co. Ltd. on Nov. 26 signed a deal to build a US$6 billion mega complex for the mining and processing of phosphate, according to Bloomberg, citing the Algeria Press Service. The project would be located in in the Tebessa region in eastern Algeria near the Tunisian border, some 430 miles east of the capital, Algiers.

Production is eyed for 2022. Sonatrach will own 51 percent of the project and CITIC the remainder. Sonatrach estimates the project will generate some $1.9 billion per year for Algeria, which is seeking to diversify its economy away from a reliance on energy production.

KBR Awarded Indian Contract

India, News, News Briefs, Texas

KBR Inc., Houston, said on Nov. 28 that it has been awarded a contract to supply proprietary equipment to Southern Petrochemical Industries Corp. Ltd. India for its plant located in Thoothukudi in the State of Tamil Nadu. KBR will supply an ammonia converter basket as proprietary equipment for the project.

In 2017, KBR supplied License and Basic Engineering Design (LBED) technology for revamping the plant to reduce the energy consumption, along with a marginal capacity increase, including a revamp of the furnace, ammonia converter, and exchanger.

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