Vancouver-Cloudbreak Resources Ltd. said June 23 that it has applied for a number of metallic mineral permits from the Department of Alberta Energy, Mineral Development Division, in the Vermillion area on the Alberta-Saskatchewan border, which will include the rights to subsurface potash totaling 774,282 acres. Cloudbreak cites a 1966 mineral assessment that says the area has geological and basinal effects closely related to the potash-rich areas of Esterhazy, Saskatoon, and Unity.
U.S. Gulf/Tampa: The latest Tampa business is reported at $585/mt DEL, with at least one buyer reported to have concluded business at that number, as well as Yara, per last week’s issue. In the meantime, sources report that an import cargo has been sold into Donaldsonville at $590/mt DEL.
Eastern Cornbelt: Dealers reported fairly heavy sidedress movement and post-emergence herbicide applications on corn in areas where field and weather conditions allowed it. One Illinois source said ammonia was catching a lot of interest in his trade area, but sidedress activity was a full two weeks behind the normal pace there.
Ammonia pricing continued to be “all over the board,” according to one source. Dealer-to-dealer trades of spring prepay tons continued to be reported as low as $750/st FOB in some areas, while reseller pricing for spot market tons had reportedly firmed to $850-$860/st FOB in the region. Some producers, meanwhile, were referencing cash tons for July as high as $1,035-$1,040/st FOB regional terminals, with forward contract ammonia priced in the $1,040-$1,050/st FOB range in the region for August shipments and beyond.
Western Cornbelt: Dealers reported some sidedress activity in the region as weather and field conditions permitted. The ammonia market continued to cover a wide range, with reports of extra spring prepay tons being bartered between dealers for as low as $725-$750/st FOB. At the upper end, sources quoted spot market values from wholesalers and producers at the $850/st FOB mark, with fall prepay reportedly being offered in the $1,000-$1,025/st FOB range. One supplier was referencing forward contract ammonia for August through December at $1,030/st FOB in Nebraska, $1,035/st FOB in Iowa, and $1,040/st FOB in Missouri.
Northern Plains: Hot, dry weather blanketed much of the region last week, which was a big change from earlier in June. A Minnesota source speculated that sidedress applications on corn were one to three weeks later than normal in his trade area, but the demand was heavy last week. North Dakota sources reported heavy sidedress demand for anhydrous ammonia.
The ammonia market was quoted in a very broad range at $850-$1,025/st FOB to the dealer, with the upper level quoted by Minnesota sources for a published summer fill price and the low end reported for cash sales on the spot market. Delivered ammonia was quoted at $1,025-$1,050/st in North Dakota depending on time of delivery, although there were unconfirmed reports of one supplier offering fill tons for as low as $990/st DEL in North Dakota in late June.
Agrium’s June 13 anhydrous ammonia postings included $850/st FOB Mankato, Minn. The company’s ammonia postings in the Leal, Velva, Grand Forks, and Beulah sales area in North Dakota will firm on July 1 to $1,119/st FOB and $1,139/st DEL. Another supplier was referencing forward contract ammonia for August through December at $1,035/st FOB in Minnesota and $1,055/st FOB in North Dakota.
Great Lakes: Although parts of the Great Lakes region reported brisk sidedress activity last week, other areas continued to be delayed by wet field conditions. One Wisconsin source said sidedressing was a full two weeks behind schedule in his territory, and speculated that some replanting will be necessary when fields finally dry out.
Ammonia pricing was reported in a broad range at $850-$1,000/st FOB in the region for cash market or summer fill tons. Sources reported no prices for fall prepay ammonia.
Pacific Northwest: Agrium’s new anhydrous ammonia postings, effective July 1, include $1,183/st rail-DEL in Oregon, Washington, Idaho, and Utah; $1,203/st truck-DEL in northern Idaho and in Oregon and Washington east of the Cascades; and $1,208/st truck-DEL in Montana and northern Wyoming. The company’s aqua ammonia postings will firm on July 1 to $301/st FOB Central Ferry and Finley, Wash.
UREA
U.S. Gulf: The NOLA urea rally continued last week with another huge run-up in prices as the week progressed. Sources reported granular product as low as $680/st FOB early in the week; by mid-week, however, $700-$710/st were common numbers. By late Thursday, business was reported at $715/st FOB, with sellers reportedly eyeing $720-$730/st FOB for the next round of trades.
While reports continued to circulate of additional exports out of the U.S., sources generally said the U.S. market is now starting to come in parity with other international price points, meaning that product sourced from the U.S. may no longer be quite as lucrative as elsewhere. Most sources, however, pointed to the rice market for the majority of the demand last week, though others said some of it was likely speculative buying, as some buyers were thinking ahead to the Southwestern Fertilizer Conference just a few weeks away and were predicting that selling prices would be much higher by then. Buy now, sell later.
Still other buyers are likely looking toward the fall season. With the high corn prices, less than expected corn acreage, and flooded farmland across the Midwest, many were expecting a big fall fertilizer season.
In the meantime, prills were reported to be lagging granular, still back in the $650-$660/st FOB range. Sources noted that there were few prills available in NOLA right now and that they are still under the world market.
As for the world market, sources noted that all the NOLA frenzy is occurring without expected business from India. Should India enter the market later this summer, as many expect, prices could see another significant boost.
Eastern Cornbelt: The granular urea market was quoted at $695-$705/st FOB for spot market tons in the region, reflecting an increase from last report. One supplier was offering July pricing last week at $725-$728/st FOB river terminals in the region, with forward contract tons up another $5/st for August and again in September.
Western Cornbelt: Granular urea was $685-$700/st FOB to the dealer, but higher postings were circulating as the week advanced. One supplier was referencing July tons at the $725/st mark FOB St. Louis, and Koch moved its posted price FOB Enid, Okla., up to the $740/st level on June 26.
Northern Plains: Granular urea was quoted at $690-$700/st FOB the Twin Cities, with delivered urea pegged at $705-$715/st in North Dakota. Sources said higher postings were taking effect, however. One supplier was referencing forward contract urea for August at $735/st FOB in Minnesota and $755/st DEL in North Dakota and northern Minnesota.
Agrium’s granular urea postings will firm on July 1 to $735/st FOB North Dakota terminals at Alton, Carrington, Colfax, Marion, and Scranton, and $740/st rail-DEL in Minnesota and the Dakotas. Those levels reflect a $30/st increase from the company’s May 28 urea postings in the region, a $65/st increase from the May 8 postings and a $140/st increase from Agrium’s May 1 urea postings in the region.
Great Lakes: Granular urea was moving for corn sidedressing in the region. Sources tagged the dealer market at $695-$720/st FOB, with the low in southern Wisconsin and the upper end reflecting list pricing in Michigan. One Wisconsin source quoted truck-delivered urea at the $685/st mark for prompt tons last week. Agrium’s June 4 urea postings included $720/st FOB Saginaw, Mich. The company’s rail-delivered urea postings will firm on July 1 to $740/st in Wisconsin.
Northeast: Heat and high humidity preceded a surge of thunderstorm activity throughout New England early in the week. Parts of Delaware also collected some moisture early in the week, but many locations in Pennsylvania and the Delmarva area were dry.
Granular urea was reported in a broad range at $678-$710/st FOB regional terminals last week, with reports of some suppliers now referencing as high as $737/st FOB to the dealer. Further south, limited quantities were still being offered at the $650/st level FOB Savanna, Ga.
Western U.S.: Agrium’s July 1 granular urea postings include $735-$750/st DEL in Montana and Wyoming, depending on location; $760/st FOB Washington warehouses at Glade, Kennewick, Warden, and Wilson; $765/st DEL in Washington, Oregon, Idaho, and northern Nevada; $775/st DEL in northern and central Utah; and $780/st DEL in southern Utah. Agrium’s urea postings in the California market will move on July 1 to $755/st FOB West Sacramento, $780/st truck-DEL in central California, and $785/st truck-DEL in northern California.
Pakistan: The National Fertilizer Development Centre (NFDC), in a report released June 25, said: “The urea availability situation would be unsatisfactory during Kharif 2008. Further imports will be required to meet the coming Kharif months demand. Ministry of Food, Agriculture and Livestock (MINFAL) is planning to import 300,000 mt of urea during July and August 2008 to meet demand in Kharif season 2008 which is ending in September.” The report also added that the season will conclude with the imported urea quantity of 242,000 mt and domestic production of 2.5 million mt. Pakistan has so far produced 4.502 million mt of urea from July 2007 to May 2008.
NITROGEN SOLUTIONS
U.S.Gulf: Like urea, UAN prices were moving up last week. Early in the week sources were calling the market $420-$430/st FOB ($13.13-$13.44/unit); however, by week’s end a trade was reported as high as $465/st FOB ($14.53/unit).
Eastern Cornbelt: The UAN market was generally quoted in the $13.90-$14.50/unit range FOB regional terminals. An Illinois source put the UAN-32 market at the $450/st ($14.06/unit) FOB level out of spot river locations after netbacks on delivered tons, but said prices were going up. One supplier was reportedly offering cash market tons at $13.90-$14.00/unit FOB river terminals in Illinois and $14.15.unit FOB Terra Haute, Ind. Another was posting forward contract UAN for August through December at $15.50-$15.80/unit FOB in the region.
Western Cornbelt: UAN was quoted at $13.91-$14.25/unit FOB in the region. One Iowa source reported the common dealer price at $14.00/unit FOB for confirmed sales last week.
Northern Plains: The UAN market was tagged at $14.20-$14.50/unit FOB Minnesota terminals for spot tons to the dealer, with reports from some sources of reference levels jumping to as high as $15.70-$15.85/unit FOB in July and August. North Dakota sources pegged delivered UAN-28 in a broad range at $450-$480/st ($16.07-$17.14/unit) in late June, although little business was reported to test the market.
Great Lakes: UAN-28 was reported at $395-$415/st ($14.11-$14.82/unit) FOB regional terminals, with the upper end reflecting new dealer reference pricing in Michigan. Dealer postings in Wisconsin were reported at the $14.50/unit FOB level. Delivered UAN-32 fill tons were quoted at $460-$470/st ($14.38-$14.69/unit) to points in central Wisconsin, but sources said a near-term increase is likely.
Northeast: Several sources reported some nitrogen applications on corn through sprinkler systems. The UAN-30 market was reported at $385-$394/st ($12.83-$13.13/unit) FOB in the region, with the low at Baltimore, Md., and the upper end quoted at Philadelphia, Pa. Sources said those numbers were still behind replacement costs; one said vessel ton values have been reported in the $480-$485/mt C&F range, although no business has actually been concluded at those numbers.
The UAN-32 market out of terminals in upstate New York was referenced at the $464/st ($14.50/unit) FOB level last week, but sources said an increase to $480/st ($15.00/unit) would take effect late in the week.
AMMONIUM NITRATE
U.S. Gulf: The barge market for AN continues to be reported as quiet, with the most recent pricing in the $370-$380/st FOB range.
Western Cornbelt: Ammonium nitrate was reported in the $400-$410/st FOB range in the region.
AMMONIUM SULFATE
Eastern Cornbelt: Granular ammonium sulfate pricing continued to firm, with postings reportedly up $60/st. Sources quoted the market at $400-$420/st FOB in the region last week, with the low out of spot river locations in Illinois.
Western Cornbelt: Granular ammonium sulfate pricing was reportedly on the move. The regional market was quoted at $400-$410/st FOB last week, with the low FOB Dubuque, Iowa.
Northern Plains: Granular ammonium sulfate was reported at a firm $400/st FOB in the region, with delivered product in North Dakota quoted at $420-$430/st, depending on supplier. Agrium’s July 1 ammonium sulfate postings include $420/st DEL in North Dakota and Minnesota, reflecting a $20/st increase from the company’s June 2 reference levels in the region.
Ammonium thiosulfate remained at $295/st FOB Winona, Minn., for straight loads.
Great Lakes: Granular ammonium sulfate pricing was up from last report at $405-$435/st FOB in the region. A Wisconsin source quoted the mid-grade sulfate market at a firm $420/st FOB, up $60/st from the previous week. Agrium’s July 1 granular ammonium sulfate postings include $420/st DEL in Wisconsin, up $20/st from the company’s June 2 reference levels in the state.
Northeast: The granular ammonium sulfate market had reportedly firmed some $60/st from last report, with sources quoting the market last week at $420-$442/st FOB in the region. The upper end was reported FOB Philadelphia to the dealer.
WesternU.S.: Agrium’s granular ammonium sulfate postings will firm on July 1 to $415/st FOB the warehouse in Idaho, Washington, Oregon, Utah, and Nevada, and $420/st DEL in those states plus Montana and Wyoming.
PHOSPHATES
Central Florida: With the exception of orders placed earlier and export business already on the books, the phosphate market in Central Florida continued to slumber last week. The few prompt sales made last week were done at the high of the previous week’s range of $1,070/st FOB.
Nevertheless, sources said there appeared to be more interest in forward sales, August through October, than has been the case in recent years at that time.
Producers made no changes to their asking prices, and a trader said, “No one wants to buy now,” due to the high cost of capital.
The Central Florida DAP price range last week continued unchanged from the previous week’s range of $1,025-$1,070/st FOB. PCS Sales’s Central Florida reference price remained at $1,050/st FOB for DAP. Mosaic’s asking price was still $1,070/st FOB for DAP and $1,095/st FOB for MAP. CF’s price was $1,050/st FOB for DAP and $1,125/st FOB for MAP, which continued to be scarce. In Texas, Agrifos’s price remained at $1,050/st FOB for trucks and $1,045/st FOB for rail shipments.
U.S. Gulf: Just before family members were notified and the tombstone chiseled, the Gulf’s river market twitched and returned to life. After lingering in a coma for the past several weeks, which was normal for this time of year, the phosphate market began early in the week with transactions being done around $1,010/st FOB. The following day, prices for prompt shipments began moving upward and forward sales for August into October were made at even higher prices – in the range of $1,065-$1,070/st FOB.
However, the best deals were available at Lower Mississippi River warehouses, which were selling at below barge prices at between $995/st FOB and $1,035/st FOB. Most of the product from warehouses was originally purchased at prices well below those of the current market, and sellers realized handsome profits. Most of the phosphates being purchased last week were for storage for the fall season, but little of the product was moving from warehouses to dealers or farmers in the fields.
Flood waters were on the retreat on the upper Mississippi and its tributaries last week, but a large amount of the corn crop in Iowa, between 10 and 15 percent, will likely be lost. Still, sources said that situation had not affected prices at warehouses, and little or nothing of stored phosphates was damaged.
For prompt sales, the lowest prices were found at the beginning of the week, but the market began moving up last Tuesday and continued to do so throughout the week. One large trader said he expected the NOLA DAP barge price to rise to $1,100/st FOB by mid-July, around the time the Southwestern Conference gets underway at San Antonio.
MAP barges were moving last week, and several barges were sold at $1,115/st FOB, which would translate to $1,090/st FOB for DAP.
Based on new prompt sales, the price range last week moved from $1,005-$1,030/st FOB the previous week to $1,010-$1,045/st FOB. MAP barges were available at prices $25-$75/st FOB more than DAP. Mosaic’s asking price for forward sales through August was $1,090/st FOB for DAP and $1,105/st FOB for MAP. CF was seeking $1,070/st FOB for DAP and $1,145/st FOB for MAP for prompt deliveries.
Eastern Cornbelt: DAP remained at $1,050-$1,107/st FOB regional warehouses to the dealer, with MAP quoted at $1,075-$1,125/st FOB. One Illinois source quoted the cash market for DAP at the $1,094/st FOB level in his trade area last week.
The only 10-34-0 quote came from an Illinois source at $950-$975/st FOB last week, but others said spot tons were difficult to come by.
Western Cornbelt: DAP was reported at $1,050-$1,094/st FOB regional warehouses, with MAP at $1,075-$1,107/st FOB. Forward contract DAP for August through September was reported at the $1,104/st FOB St. Louis mark from one regional supplier.
Dealers continued to offer no current pricing quotes for 10-34-0 in the region.
Northern Plains: DAP remained at $1,065-$1,100/st FOB Minnesota warehouses for spot tons to the dealer, with the MAP market quoted in a broad range at $1,100-$1,175/st FOB. Forward contract tons FOB Pine Bend, Minn., were being offered for the August through September shipping period at $1,110/st for DAP and $1,185/st for MAP. A North Dakota source quoted delivered MAP in the $1,100-$1,120/st range from western shipping points for limited tons.
10-34-0 was reported at $950-$1,050/st FOB in Minnesota, with the low end for spot loads of black product and the upper numbers for green 10-34-0. A North Dakota source quoted delivered green 10-34-0 last week at the $1,080/st level from Canadian shipping points.
Great Lakes: The DAP market was quoted at $1,070-$1,143/st FOB regional warehouses, with the low in Wisconsin and the upper level reflecting dealer reference levels out of Michigan shipping points. MAP was tagged at $1,090-$1,158/st FOB, with the upper level again in Michigan.
10-34-0 was tagged at $975-$1,030/st FOB and in very tight supply, with the upper end of the range reported in Michigan and the low reported by sources in southern Wisconsin.
Northeast: MAP was reported at $1,080-$1,110/st FOB in the region, with the low FOB Philadelphia to the dealer. DAP was quoted at $1,050-$1,100/st FOB the warehouse.
10-34-0 was quoted as high as $1,070/st FOB terminals in upstate New York for new sales, up more than $200/st from last report. Several sources continued to quote the spot 10-34-0 market in the $800s/st FOB last week, but that was presumably for tons ordered earlier and did not reflect new replacement costs.
U.S. Export: The export market was quiet last week, and PhosChem made no new sales while it waits for prices to move up. India was said to be poised to make additional purchases around the beginning of this week.
KeyTrade’s sale into India during the previous week was said to have been done at $1,270/mt CFR for 35,000 mt.
In what could be a positive development for the export market, Argentina’s farmers’ strike may be over – or at least coming to an end. Sources said the farmers, who have been protesting against a proposed export tariff, have gotten the national legislature to agree to take a vote on the tax. Legislators were far more likely to modify or reject the hike sought by the country’s president. However, fertilizer sellers were taking a wait-and-see attitude toward moving product out of warehouses at the ports to the fields until the drama is complete.
With no new sales last week, the export DAP price range was unchanged at $1,160-$1,205 mt.
India: IFFCO issued a tender for an unspecified quantity of DAP for arrival August thru October, 2008. The tender initially was to close June 23 and was to be valid through June 25. Reports now are that it will close June 27 and remain valid until June 30.
The country has projected a DAP requirement for the current kharif season 2008 at 4-4.8 million mt, while domestic production is estimated to be around 1.9-2 million mt. According to local media, imports of 2.9 million mt have already been contracted to meet this imbalance. However, only 1.7-1.8 million mt of DAP is expected to arrive in time for use in this season, thereby leading to a shortage of 0.5-1 million mt.
POTASH
Eastern Cornbelt: Potash was quoted at $800-$830/st FOB regional warehouses on the secondary market, depending on grade and location.
Western Cornbelt: Potash was generally quoted at a firm $795-$800/st FOB regional warehouses for brokered or resellers tons last week, with some locations referenced as high as $830/st FOB.
Northern Plains: Potash remained at $522-$530/st FOB Saskatchewan mines, depending on grade, for allocated June product shipments. Dakota sources quoted a $610-$650/st DEL range for allocated tons, while Minnesota dealers reported warehouse pricing on the secondary market as high as $800/st FOB in late June.
As of last report, Agrium’s postings FOB Vade, Saskatchewan, for the July 1 forward shipping period will include $585/st for standard grade and $590/st for red premium.
Great Lakes: The potash market was quoted at $800-$830/st FOB on the secondary market, with truck-delivered tons reported at the $830/st level in central Wisconsin.
Northeast: Potash pricing was tagged at $645-$693/st DEL in the region, depending on grade and location, for allocated tons from producers.
SULFUR
Tampa: No serious negotiations between sulfur producers and phosphate companies had begun as of late last week, although some preliminary discussions were just underway. However, no new prices had been tossed on the table, so the process could take another week or, perhaps, a month. Speculation that sulfur producers could seek as much as $250/lt FOB persisted. The upcoming Southwestern Conference could provide an opportunity for the parties to resolve the issue.
No new problems were reported at refineries or in sulfur transportation last week.
A rumor held one of the four sulfur vessels Mosaic was importing to supplement its supplies was coming from India, which is normally an importer of sulfur itself. Two of the other vessels sold by ICEC were said to have been identified, one from Vancouver and the other from the Black Sea.
Valero was seeking input from the public on a $600-million sulfur recovery unit planned for the company’s refinery at Benicia, which will not only reduce sulfur emissions, but also put more product into the market.
Vancouver: Sulfur producers were said to have begun negotiations with China for new third quarter prices. However, that country has restricted the amount of sulfur it was importing until sometime after the Summer Olympics.
MARKET NOTES
India: The Indian Government this week has approved a new scheme for phosphatic and potassic fertilizers that would reduce the subsidy bill by Rs 11.63bn, besides encouraging the industry to raise production. The Cabinet Committee on Economic Affairs (CCEA) approved the Department of Fertilizer’s proposal relating to the Concession Scheme on de-controlled P&K fertilizers. The Concession Scheme on P&K fertilizers, which lapsed on March 31, included DAP, MOP, MAP, and 11 grades of complex fertilizers. The new scheme, which will come into effect retrospectively from April 1, 2008, based on a revised framework, envisages a reduction in subsidy outgo to the extent of Rs 11.63bn. The scheme is aimed at providing a long-term perspective to the fertilizer industry to seek out new and cheaper sources of phosphatic and potassic raw material, intermediaries, and finished fertilizers, thereby helping the Indian farmers meet their nutrients requirements. Under the new scheme, indigenous DAP has been brought at par with imported DAP for calculating concessions.
Welcoming the government decision, the Fertilizer Association of India (FAI) said that the new scheme, by and large, meets the expectations of the industry. “Industry is equally keen that the subsidy dues are disbursed without any delay. Since the farmer is paying only 15 percent of the actual cost of fertilizer, the rest has to come from the government if the companies are to avoid working capital crunch,” said Satish Chander, FAI director general. The CCEA decided that DOF would maintain a buffer stock of 350,000 mt of DAP and 100,000mt of MOP to meet any exigency.
The CCEA also sanctioned Rs 4.29bn for a centrally-sponsored scheme on a “national project on management of soil health and fertility.” The main components of the scheme will be for the strengthening of soil testing laboratories and promotion of integrated nutrient management.
India: The Union government has asked the states to act tough on hoarders and black marketers of fertilizer, which is not reaching the farmers and resulting in unrest in some parts of the country. Asserting that there were adequate supplies, Fertilizer Secretary J.S. Sarma asked farmers “not to resort to panic buying. State governments are requested to take action to de-hoard stock and ensure that stocks are evenly distributed.” In Haveri, in North Karnataka, one person was killed and four others were injured recently as police fired at farmers protesting fertilizer shortages.
Sarma said urea is plentiful in all the states and that Andhra Pradesh is getting almost double the DAP that it requires.
India: There is a declining trend in production of DAP and SSP in the country, according to local sources. The domestic production of DAP has declined substantially to 4.21 million mt in 2007-08 from 4.85 million mt in the previous year, and that of urea to 19.86 million mt from 20.3 million mt a year-ago. The program to import at least three million mt of DAP in the current financial year is expected to drive international prices. It is felt that the government should take steps to revive the fertilizer industry that will pave the way for reduced imports of DAP, urea, and other fertilizers. It is also felt that the government should exempt customs duty on inputs such as sulfur and rock phosphate, which will help reduce the bulging subsidy bill on fertilizers.
The Andersons Inc. has named Arthur DePompei as vice president, human resources, reporting to Mike Anderson, president and CEO. He fills the position being vacated by Charles Gallagher, who is retiring at the end of June after 34 years with the company. DePompei most recently held a similar position for Degussa Construction Chemicals LLC, Cleveland.
Converted Organics Inc. has named Dean Ulrich as the general manager of the company’s new flagship processing facility in Woodbridge, N.J. Ulrich, 43, has two decades of transportation and waste management industry expertise, most recently with EnviroSolutions Inc., Newark, N.J.
Dan Hutson II, who was killed in a plane crash June 18 (GM June 23, p. 10) was survived by his wife, Cindy; three daughters, three granddaughters, a sister, and step-mother Sue Hutson, the widow of Dan Hutson Sr. Expressions of sympathy may take the form of contributions to St. Jude’s or Murray State Foundation in memory of Dan C. Hutson II.
Moab-Utah Uranium Corp. said June 25 that it is taking action to change the name of the corporation to Universal Potash Corp. to more closely reflect the direction of the company moving forward. While still maintaining interests in several past-producing or highly-promising uranium projects in Utah and western Colorado, the company has been actively pursuing several potash opportunities. It has an agreement in place to purchase a total of 474,400 contiguous acres of prospective potash property in east central Alberta, on the Saskatchewan border. The company has received some of the permits derived from the applications, and anticipates receipt of the outstanding applications shortly. The company has also filed potash applications covering a total of 29,000 acres near Moab, Utah. Included in this is an exploration permit application covering a total of 3,880 acres (over 6 sections) of prospective ground northwest of Moab, and potash lease applications for a total of 7,360 acres (11-1/2 sections) of School Sections and a total of 17,760 acres (27-3/4 sections) of ground within the known potash leasing areas (KPLAs) within 3 miles of Intrepid Potash Inc.’s Cane Creek operations. All of the Utah ground applied for is within the Paradox Basin. The auction for these lease applications is anticipated to be held in mid-July. The company says the Paradox Basin, a massive salt anticline covering a large area of eastern Utah and western Colorado, contains as much as 2.0 billion tons of potash in reports from the U.S. Geological Society. Production to date has almost entirely come from the Cane Creek Mine complex operated by Intrepid, located 5 miles west of Moab, which has been in production since the mid-1960s. The property subject to the potash exploration permit applications is located immediately to the west of School Sections that have seen previous drilling for oil/gas. The company has applied for leases covering those School Sections as well. Historic drilling activity on the School Sections encountered significant intersections of both sylvite and carnallite, with sylvite values averaging near 20 percent, but ranging as high as 49 percent.
Reno-Itronics Metallurgical Inc. reports that its Gold’n Gro Guardian Deer Repellant fertilizer is now available from the company in three states ?Çô Nevada, Utah, and Rhode Island. Registration is expected in Massachusetts in July and in New York in August or September, and is pending in Alabama, Delaware, Iowa, Maryland, Pennsylvania, and New Jersey. Due to requests for smaller quantities of the product, Itronics has adjusted its sales introduction plan to provide a one-gallon spray kit for smaller users and for evaluation by larger potential users.
Denver, Colo.-Intrepid Potash Inc. expects that a warehouse to replace one destroyed by a wind shear or tornado in 2006 at the East Carlsbad, N.M., site (GM May 1, 2006, p. 1) will be completed in 2009 at a cost of $26 million. As of March 31, 2008, Intrepid says it has received $21.1 million of insurance settlement payments. Additional insurance payments to reconstruct the warehousing facilities are still contingent upon review by the insurer.
Subiaco, Australia-Uramet Minerals Ltd. reports that it is exploring for phosphate at several sites in Western Australia. The sites are in the Georgina Basin in the Northern Territory and Queensland. One major site, Thorntonia, is located adjacent to the Lady Annie deposit, which has been recently subject to a long-term offtake and supply agreement and proposed joint venture development between Legend International Holdings and India’s IFFCO. Other Uramet exploration sites, further south and near each other, are identified as Boat Hill, Toko, and Desert Syncline. Additional prospective sites are identified as Foss Hill, Library Ridge, White Hill, Mauritania, Toomba, and Horseshoe. For more details, see www.uramet.com.au.
Brisbane, Australia-Union Resources Ltd. said June 20 that it has acquired Namibian company Sea Phosphates (Namibia) Pty Ltd. (SPL). SPL holds two exclusive prospecting licenses (EPLs) issued by the Namibian government. The EPLs lie approximately 60 km offshore from the coast of Namibia between Walvis Bay and Luderitz, with a combined total area of 200,000 hectares. Union says the area has been subjected to significant exploration and evaluation since the 1970s. Companies involved in earlier exploration included Gencor, Foskor of South Africa, The Ocean Phosphates Consortium, and then finally SPL.
Disclaimer of Warranty
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.
