Philadelphia-A small-scale revolt of sorts is being staged by a handful of townships and other municipalities against state control over using biosolids as fertilizer. The attorney general has filed suit in Commonwealth Court against East Brunswick under the state’s ACRE (Agriculture, Communities and Rural Environment) law, asserting that the state – and not local government – has the authority to regulate the use of biosolids. In the meantime, other areas in Schuylkill County, including Tamaqua and Mahanoy City boroughs, have joined East Brunswick in passing biosolids ordinances. Earlier this month, Branch Township passed a land application and storage of sewage sludge ordinance, and also voted for a resolution to support East Brunswick Township’s court case. ACRE, which was adopted by the legislature in 2005, allows for the state attorney general to review local ordinances when petitioned to do so by farmers, and then either respond to the petitions or bring action within 120 days. An ordinance can be struck down if the court finds it exceeds local government authority.
U.S. Gulf/Tampa:Tampa continues to be reported at $745/mt DEL and NOLA at $700/st FOB. New import business for other ports may be forthcoming within the next week. If so, sellers are expecting higher numbers, citing skyrocketing price ideas in Yuznhyy, where some say sellers are quoting between $800-$850/mt FOB for new business. Actual confirmation of those numbers has been harder to come by, however, with most sources saying the last done business was sub-$800/mt FOB.
Eastern Cornbelt:The market for anhydrous ammonia appeared to be slowing last week, with prices at $1,040-$1,050/st FOB Illinois River terminals, and $1,210/st DEL in other locations.
Western Cornbelt:Spot anhydrous ammonia pricing moved up from $1,000-$1,020/st to $1,020-$1,100/st FOB.
California:Effective July 25, Calamco moved its anhydrous ammonia price in the California market up to $700/st truck-DEL and $745/st rail-DEL. Effective that same date, Agrium’s anhydrous ammonia postings firmed to 1,000/st truck-DEL in central California and $1,005/st truck-DEL in northern California. Agrium had previously released an updated price list showing a move to $980/st truck-DEL in central California and $985/st truck-DEL in northern California on July 25, but followed that shortly thereafter with the higher reference levels.
Pacific Northwest:Agrium raised its anhydrous ammonia postings again on July 25 to $1,433/st rail-DEL in Oregon, Washington, Idaho, and Utah; $1,453/st truck-DEL in northern Idaho and in Oregon and Washington east of the Cascades; and $1,458/st truck-DEL in Montana and northern Wyoming. Those levels reflect a $54/st increase from the company’s July 16 postings, a $125/st increase from the company’s July 10 postings, a $187/st increase from July 4 postings, and a $250/st increase from Agrium’s July 1 ammonia postings in the region.
Agrium also announced another aqua ammonia pricing increase on July 25. Postings moved on that date to $363/st FOB Central Ferry and Finley, Wash., up $13/st from the company’s July 15 postings, $31/st higher than the July 10 reference levels, $46/st higher than July 4 postings, and up $77/st from Agrium’s July 1 aqua ammonia postings in the region.
Western Canada:Anhydrous ammonia pricing firmed on July 25 to $1,584-$1,629/mt DEL, up more than $200/mt from last report.
Black Sea: As the week closed, sources reported business done at $750/mt FOB. Producers are moving to take advantage of the bullish market. The entry point for discussion is now $800/mt FOB, with a target of $850/mt FOB in the near future.
UREA
U.S. Gulf: NOLA prices were reported to have fallen below the $800/st FOB mark early in the week, but then rebounded midweek. Why? Some cited concerns that China would either raise the current 135 percent export duty on urea or keep it in place.
Regardless, sources reported that granular barges sank as low as $790/st FOB before turning around. By the end of the week, most were putting them within the $800-$805/st FOB range, with sellers seeking $810/st FOB for the next trade.
In the meantime, CF reports that it is full steam ahead at all plants at Donaldsonville, and that any rumor to the contrary is erroneous. Such a rumor was floated last week, but CF quickly nipped it in the bud.
At least three or four prill vessels are reported to be on the horizon for near-term delivery to NOLA. While buyers argue this is a sign for prices to fall, sellers say these are regular shipments that were expected for a while and nothing out of the ordinary.
Eastern Cornbelt: Granular urea increased from $850-$880/st to $890-$900/st FOB regional terminals to the dealer.
Western Cornbelt: The granular urea market was quoted at $845-$870/st FOB regional terminals to the dealer.
California: The granular urea market was quoted at $860-$900/st FOB and $885-$925/st DEL in the state, up roughly $75/st from last report.
Effective July 25, Agrium’s urea pricing increased to $895/st FOB West Sacramento, $920/st truck-DEL in central California, and $925/st truck-DEL in northern California. Those levels reflected a $30/st increase from Agrium’s July 16 urea postings in the state, a $70/st increase from July 10 reference levels, a $105/st increase from July 4 postings, and a $140/st increase from Agrium’s July 1 urea postings in California.
Pacific Northwest: Effective July 25, Agrium’s urea postings increased for the fifth time in July, moving to $875-$890/st DEL in Montana and Wyoming; $900/st FOB Washington warehouses at Glade, Kennewick, Warden, and Wilson; $905/st DEL in Washington, Oregon, Idaho, and northern Nevada; $915/st DEL in northern and central Utah; and $920/st DEL in southern Utah. Those levels were up $30/st from Agrium’s July 16 postings, $70/st higher than July 10 reference prices, $105/st higher than July 4 postings, and $140/st higher than Agrium’s July 1 urea postings in the region.
Western Canada: Granular urea was quoted at $985-$1,010/mt DEL as of July 25, reflecting a $115/mt increase from last report.
Middle East: The only real bit of new business is a reported sale of 25,000 mt by PIC/Kuwait to Keytrade at $870/mt FOB. Sources say this was the same deal that hit the rumor mill a couple of weeks ago. It now appears, according to one trader, that the material is heading for Argentina. The deal shows that producers remain fixated with moving the price into new territory.
As the IPL/India tender closed and some Middle East producers lowered their prices to $815/mt FOB, PIC and others that did not participate in the tender kept claiming the new floor was $870/mt FOB.
The PIC sale is evidence producers can usually get their asking price at this time, said one observer.
With the PIC deal done and the IPL tender concluded, the price spread for granular is wider than any other time in history. Sources say the IPL numbers – $815/mt FOB for prills or granular – cannot be ignored. Neither, say others, can the $870/mt FOB just concluded.
One trader noted that the IPL numbers were an aberration. At the time the tender results were announced, sources said the producers lowered their price from $830-$838/mt FOB to $815/mt FOB to ensure they stay in the Indian market. One source said the Middle East remains a good source for India because shipments can be structured to accommodate a number of ports in India to make inland delivery easier for the buyers.
For now, the bulk of the business is below the $870/mt FOB price and closer to the IPL price. One observer said the market will have to wait to see if additional business is done at that level to learn whether or not it is a harbinger of higher prices.
At the same time, Indian business provides a steady flow of business for the producers.
It is the guarantee of steady business to India and other buyers that makes the producers confident they can charge $870/mt FOB and up for spot tons.
Prills have largely remained unaffected by the PIC business and continue to be pegged at levels tied to the IPL tender.
Black Sea: Sources say the quietness of the market is being reflected in price talks, but not actual prices. Producers were asking more than $800/mt FOB for material, but were being repeatedly rebuffed. Sources say talks with producers and among traders now put the high end just under $800/mt FOB, but not touching it.
Traders were working last week to find out who is long and who is short. One trader noted the dramatic price increases this year have forced a lot of people in the industry to rethink their strategies for forward buying. No one wants to be caught with purchase orders that do not cover the cost of getting the product from the factory. At the same time, jumping in too soon on a long position could leave a trader with high priced tons in a declining market.
If India can hold off buying more material until the fourth quarter, sources say prices should come off further as stockpiles build.
For now, prices remain pegged to the business concluded with India.
India: Sources say IPL and MMTC are carefully looking at how many more tons are really needed, and how soon. If the buyers can hold off until the fourth quarter, said one trader, they might be able to get better prices than rushing in to buy now.
While that might make economic sense, sources say political pressures are also weighing heavily on the buying agents. With national elections coming up, the governing coalition of parties does not want to be seen as responsible for any perceived – or real – shortages of urea.
Industry observers are in general agreement that India needs at least 1 million mt more of urea by the end of the year.
Sources say that unless China lowers its export duty, securing the needed tonnage at significantly lower prices will be difficult.
Observers note that if Indian buyers can hold off with their tenders until the fourth quarter – regardless of what China does – the price should soften. If China lowers its export duty, lower prices will dominate the purchases. If it does not, sources expect to see low prices initially and then another spike as India soaks up the tonnage at the end of the year.
Pakistan: The government has recently asked the industry to import 300,000 mt of urea for Kharif season. If they do not, TCP will be called into action, according to the government. In addition, the government is trying to make more gas available for the industry so that an additional 40,000 mt can be produced locally during the season.
Indonesia: PIM was to have concluded a tender last week, but pushed it off. Sources say the engineers at the plant told the marketing folks that the facility needed to go into turnaround slightly ahead of schedule. As a result of the call, sources say PIM is planning to offer 40-60,000 mt in a tender to be called soon for late September pickup. Industry observers question the wisdom of offering tons at this time for a loading date so far in the future. Once this tender is done – whenever it is done – sources say Indonesian producers will be out of the exporting business for the rest of the year.
Asia: Sources report the quietness in the global urea market is a result of buyers having more than enough on hand for the next few months. Thailand, the Philippines, Indonesia, and Malaysia are all said to have more than enough urea to cover their needs for the next couple of months. One trader said not only are inland warehouses full, but so are the dockside facilities. He added that some locations are even storing material outside the warehouses in temporary facilities.
The surplus of material occurred because buyers were nervous of ever-increasing prices and moved quickly to secure the tons they needed before the price went up further.
One observer noted the actions of the buyers only exaggerated the demand situation and forced prices higher anyway.
China: Questions are still being raised about what Beijing will do about the export duty when the fourth quarter arrives. The latest rumor has the export duty being raised to 160 percent from the current 135 percent. With China caught up in Olympic fever, sources say no one will be talking about fertilizer until the end of the month
NITROGEN SOLUTIONS
U.S. Gulf: Most players continued to call NOLA UAN barges within the $500-$515/st FOB ($15.63-$16.09/unit) range, though seller price ideas are now more in the $515-$520/st FOB range.
Eastern Cornbelt: UAN was quoted at $15.63-$15.89/unit FOB regional terminals last week. The low end was reported at the $500/st ($15.63/unit) level for UAN-32 out of spot river locations in Illinois, and the upper level reflected recent reference prices to the dealer.
Western Cornbelt: The UAN-32 market was higher at $500-$515/st ($15.63-$16.09/unit) FOB terminals on the low end, with reports of postings from some regional suppliers higher to the dealer.
California: UAN-32 pricing had increased to $15.63-$16.03/unit FOB. Agrium’s UAN-32 postings firmed on July 18 to $513/st ($16.03/unit) FOB Sacramento, $535/st ($16.72/unit) truck-DEL in central California, and $540/st ($16.88/unit) truck-DEL in northern California. Those levels represent a $25/st increase from the company’s July 10 reference prices in the state.
Pacific Northwest: Agrium raised its UAN-32 postings again on July 18 to $525/st ($16.41/unit) DEL in Washington, northern Idaho, and Oregon excluding Malheur County; $530/st ($16.56/unit) rail-DEL and $535/st ($16.72/unit) truck-DEL in southern Idaho and Oregon’s Malheur County; and $555/st ($17.34/unit) DEL in Montana and northern Wyoming. Those levels reflect a $25/st increase from Agrium’s July 10 reference levels in the region. Agrium also reposted its UAN-28 postings in Montana and northern Wyoming on July 18 to $486/st 17.36/unit) DEL, up $22/st from its July 10 posting.
Western Canada: UAN-28 was reported at $542-$557/mt ($19.36-$19.89/unit) DEL in the region.
AMMONIUM NITRATE
U.S. Gulf: With little prompt activity in the market, barges continue to be called $500-$510/st FOB. However, sources continue to quote forward postings for late September and October within the $560-$580/st FOB range. Even with this uptick, sources say the product is incredibly cheap compared to urea.
Western Cornbelt: Ammonium nitrate pricing was still high due to much more expensive replacement costs, with sources quoting the regional market at $550-$600/st FOB to the dealer last week.
California: No market was reported for ammonium nitrate in California, but CAN-17 was quoted at $315-$325/st FOB in the state.
Pacific Northwest: No current prices were reported for ammonium nitrate in the region. Agrium’s CAN-17 postings firmed at mid-month to $365/st FOB Kennewick, Wash., up $25/st from the previous level. Agrium’s 20-0-0 ammonium nitrate solution postings firmed again on July 18 to $322/st FOB Kennewick, up $16/st from the company’s July 10 posting at that location.
AMMONIUM SULFATE
Eastern Cornbelt: Granular ammonium sulfate was unchanged at $455-$475/st FOB in the region, although business was slow.
Western Cornbelt: Granular ammonium sulfate was steady at $435-$475/st FOB in the region, with the low reported in Missouri on a spot basis.
California: Ammonium sulfate was tagged at $375-$395/st FOB, a $45/st FOB increase since the last report.
Pacific Northwest: Agrium’s granular ammonium sulfate postings increased again on July 25 to $470/st FOB the warehouse in Idaho, Washington, Oregon, Utah, and Nevada, and $475/st DEL in those states plus Montana and Wyoming. Those levels reflect a $15/st increase from the company’s July 16 postings, a $35/st increase from the company’s July 11 postings, and a $55/st increase from July 1 reference levels.
Western Canada: Granular ammonium sulfate was tagged at $555-$560/mt DEL, up some $55/mt from last report.
PHOSPHATES
Central Florida: A couple of sales were made out of the Central Florida phosphate market last week. Both deals were done by Mosaic, one for MAP at $1,105/st FOB and the other at $1,080/st FOB for DAP, and both were scheduled for shipment in August, which qualifies as prompt.
The phosphate industry last week continued to hum along in terms of production, but most new product was going into storage. Sources say export business should help to control inventories.
A trader said he had had no phone calls or interest from any buyers during the past week. He added, “A huge percentage in the Midwest are full, and you can’t sell anymore. In the East, it’s different. They don’t need it for fall and (some) won’t put it down at all,” referring to wheat farmers and those with pastureland.
The Central Florida DAP price range last week was $1,070-$1,080/st FOB. PCS Sales’s Central Florida reference price remained unchanged at $1,070/st FOB for DAP and had a $25/st FOB premium for MAP. Mosaic’s asking price increased to $1,090/st FOB for DAP and $1,115/st FOB for MAP. CF was asking $1.070/st FOB for DAP and $1,145/st FOB for MAP. In Texas, Agrifos’ DAP price was $1,100/st FOB for trucks and $1,095/st FOB for rail shipments.
U.S. Gulf: The quiet in the NOLA DAP barge market was deafening last week, as new, prompt transactions ground to a halt. A change is likely on the horizon, but still in the distant future. Most warehouses in the Midwest are full because traders and dealers continued buying well into the spring season this year. The fall season begins around the first of September, but even then bins will have to begin to empty for that to happen. Farmers in the more southerly areas will – or should – see the first action, but shortly after the rush to move product to the upriver areas before the close of the river in mid-October will begin.
Corn is the biggest market for phosphates, and to the relief of the industry, corn prices were on the rebound last week, with the price moving to around $6.50/bushel. A dealer noted that in his area farmers can recoup the cost of all of their fertilizers by selling just 30 bushels an acre of corn. That compared favorably with the 29 bushels needed last year and 28 the year before, despite the high price of all fertilizers. The USDA says the average farmer will have a yield of about 152 bushels per acre, so there was plenty of motivation to continue growing corn and using phosphates. Still, the dealer said, some may switch to raising soybeans to avoid taking the risk of borrowing large sums in a tight credit market. Those who use pastureland for cattle will be out of the market, and vegetable growers will likely reduce their applications.
The NOLA DAP barge price range last week was unchanged at $1,070-$1,080/st FOB. MAP barges were available at prices $25-$75/st FOB more than DAP. Mosaic’s asking price for NOLA DAP barges was $1,100/st FOB and $1,125/st FOB for MAP, and its prices for October and November will increase $10/st FOB. CF was seeking $1,070/st FOB for DAP and $1,145/st FOB for MAP for prompt deliveries, if available.
Eastern Cornbelt: DAP out of warehouses remained at $1,100-$1,104/st FOB river terminals and $1,120-$1,130/st FOB at inland locations. MAP was $1,110-$1,150/st FOB. 10-34-0 pricing was not available last week.
Western Cornbelt: DAP remained at $1,080-$1,105/st FOB regional warehouses, with most sources quoting the upper end as the common dealer price in late July. MAP was pegged at $1,110-$1,145/st FOB. 10-34-0, where available, was at or above the $1,100/st FOB level last week, but spot tons were limited.
California: DAP and MAP were steady at $1,155-$1,165/st FOB or DEL in the state, and 16-20-0 remained at $615-$622/st FOB. 10-34-0 had reportedly strengthened to $940-$960/st FOB in California, up roughly $30/st from last report.
Super phosphoric acid (SPA) and merchant grade acid (MGA) were quoted at $23.50/unit DEL in California, with Simplot’s reference price for MGA at $23.70/unit FOB Lathrop. Effective Aug. 1, prices were slated to firm to $24.00/unit FOB in the state for both MGA and SPA. Agrium’s July pricing levels included $2,350/st rail-DEL for both SPA and MGA, with a move to $2,400/st rail-DEL slated for August.
Pacific Northwest: DAP and MAP were steady at $1,145-$1,160/st DEL or FOB in the region. 16-20-0 remained at a firm $615-$620/st DEL in the region. 10-34-0 had reportedly firmed to $962-$972/st FOB in the region, up from last month.
SPA and MGA were unchanged at $23.50/unit DEL in the region. Another 50 cents/unit increase is slated for August. Agrium’s July SPA and MGA postings include both products at $2,350/st rail-DEL, with August postings at $2,400/st railDEL in the continental U.S.
Western Canada: MAP remained at $1,335-$1,370/mt DEL in the region.
U.S. Export: PhosChem made no export sales last week, but a trader was able to sell between 15,000-20,000 mt of DAP at a price between $1,215/mt FOB and $1,220/mt FOB into South America from the Gulf.
India was said to have purchased two vessels of phosphate and Brazil was said to have taken an unspecified amount from Russia, but prices were not available.
The price of phosphate rock from Morocco was running $440-$460/mt FOB based on recent sales. The highest quality rock from Morocco was selling at a premium, around $500/mt FOB. Those prices may be placing a strain on Mississippi Phosphates, and possibly Agrifos, which imports rock from North Africa, along with the new sulfur price of $615.50/lt and higher prices for ammonia.
The export DAP price range last week was $1,212-$1,215/mt FOB, up slightly from the previous week’s range of $1,205-$1,212/mt FOB.
China: A report from the China Phosphate Fertilizer Industry Association on July 29, 2008, said the phosphate fertilizer industry in Sichuan was recovering after the devastating earthquake of May 12, 2008. The earthquake significantly damaged Sichuan’s phosphate industry. The country’s two largest producers of MAP – Sichuan Yingfeng Industrial Co. Ltd, Shifang, with a total phosphate capacity of 840,000 mt, and Sichuan Hongda Co. Ltd, Shifang, total capacity of 650,000 mt – were severely damaged. Yingfeng will restart phosphate fertilizer production on August 20, 2008, and will reach 50 percent of the pre-earthquake production level. Hongda Co. Ltd. will resume phosphate fertilizer production by the end of August at 80 percent of capacity. The Sichuan Jinhe Phosphate Rock Mine, Shifang, which has annual phosphate rock capacity of one million mt and MAP production capacity of 150,000 mt, will also restart sulfuric acid production by the end of July, as well as phosphate fertilizer production by the end of September. Currently, China has a high export tariff to keep phosphates in the country.
POTASH
U.S. Gulf: Most players were putting new prompt barge sales within the $930-$950/st FOB range last week, though some were reportedly now quoting product as high as $965/st FOB. Barges delivered upriver were reported to have sold as high as $970/st FOB.
Eastern Cornbelt: Sources quoted potash prices at $850-$930/st FOB in the region last week.
Western Cornbelt: Potash prices continued to move up rapidly. Sources put the market in a broad range at $900-$950/st FOB regional warehouses to the dealer, with most suppliers closer to the higher level.
California: Potash pricing remained at $614/st FOB for allocated tons of 62 percent white product and fine grade potash, with delivered potash reported at $700-$770/st, depending on grade and supplier. Sources talked of a $250/st price increase in September.
Granular sulfate of potash (SOP) was reported at $895/st FOB in the state, with water soluble SOP at $955/st FOB for bulk and $1,015/st FOB for bags. Great Salt Lake Minerals Corp., a subsidiary of Compass Minerals, has announced a $255/st price increase on all SOP specialty fertilizer products effective with shipments on Aug. 15, 2008. The new list price for standard, non-granulated SOP will be $988/st, and granular SOP will be $1,000/st at the company’s solar evaporation plant at Ogden, Utah. A price list for Great Salt Lakes Minerals’ SOP products is posted on its website at www.gslminerals.com.
Sources said the California potassium nitrate market was $1,160/st FOB for bulk and $1,230/st FOB for bags.
Pacific Northwest: Prices for allocated potash tons were unchanged from last report at $615-$651/st FOB and $636-$646/st DEL, depending on grade and location.
Western Canada: No current prices were reported for potash in the region.
SULFUR
Tampa: After a delay the week before, phosphate producers finally settled all of their third quarter sulfur contracts with their suppliers early last week, up $165/lt for Tampa. That brought the price range to a record $615.50-$618.50/lt, which was near the world price – or a lot closer.
Two prill sulfur vessels a week apart left the Gulf for an unspecified destination, possibly Brazil. No other shipments were expected for more than a month.
Meanwhile, the meteoric rise of sulfur prices on the world market appeared to have peaked and may be on the decline. With another two months before the end of the current quarter, eyes in both the sulfur and phosphate industries will be on that market. If the trend continues, Tampa sulfur prices may not increase at all, or could even decrease somewhat for the fourth quarter.
West Coast: Negotiations for new quarterly contract prices were scheduled to begin this week. Contracts on the West Coast typically begin one month later than Tampa’s.
Vancouver: One of the main sulfur docks at Vancouver, Pacific Coast Terminals, which was shut down for a turnaround and maintenance for the last three weeks in July, was scheduled to reopen the first week of August. Sources said the sulfur industry there had stopped seeking new orders for that period, but business will resume as usual this week – or should.
China’s phosphate industry was expected to bring the damaged processing plants and a mine back into production in August and September, which could mean a resumption of sulfur purchases. China stopped importing sulfur after the devastating earthquake a few months ago, due to the damage to the phosphate industry and to the Olympics, which start Aug. 8.
MARKET NOTES
India: Due to their high costs and value to domestic producers, the government is mulling a ban on the export of sulfuric and phosphoric acid.
The DOF has given an in-principle nod to offtaking urea from Kribhco’s joint venture with North-West Chemicals and Fertilizers for a urea plant with a capacity of between 1.50-1.75 million mt/y based on gasification of coal reserves located in Western Australia.
Coromandel Fertilisers reports that it has taken a 50 percent equity position in a company formed in Singapore, named Coromandel Getax Phosphates Ltd., to explore rock mining opportunities overseas.
Reports from the country are that Nagarjuna’s plans to build a fertilizer plant in Nigeria have reached critical mass. The company is confident of signing a deal with Nigerian agencies “at the earliest.” Plant capacity is put at two ammonia units with a total annual capacity of 1.518 million mt and two granular urea trains totaling 2.66 million mt/y. The first train is expected to come up in mid-2001. Some 25 percent of the product would be used domestically, 25 percent to international offtakers, and 50 percent to the Government of India. Some 1,000 hectares have been approved for a 99-year lease, and gas allocations have been confirmed by the Nigerian government. Water would come from a pipeline from the Kwa River, 10 kilometers away. The nearest port is Port Calabar.
Morocco: Morocco and Pakistan are to negotiate the possibility of the setting up a joint venture for the production of DAP fertilizer, either in the public or private sector. This was discussed by the officials of both the governments in July. The Moroccan side also agreed to consider the Pakistani request to supply some quantity of DAP, available on fast track. Details of project and the quantity of DAP are being worked out.
Sri Lanka: The country plans to set up a phosphate manufacturing plant, as well as phosphoric and sulfuric acid facilities, to meet the country’s annual fertilizer requirements by making use of the local phosphate deposit. Lanka Phosphates Ltd. was already formed to set up the plant, with the technical and financial support of foreign firms. Earlier, India, China, and Japan showed interest, but the project did not materialize due to equity and environment issues. Sri Lanka discovered phosphate rock deposit in Anuradhapua, north central Sri Lanka, in 1971.
Truth Chemical announces that effective Aug. 1, Jerrod Greene has joined the company as director of fertilizer sales and marketing. He will be based out of Tulsa and report to Dan Russell. Greene, who was most recently with Ben-Trei Fertilizer Co. LLC, can be reached at (O) 918-286-7194, (C) 918-607-0455, (F) 918-615-6573, and email jgreene@truthind.com.
Vancouver-Geo Minerals Ltd. and Alix Resources Corp. reported July 22 that due diligence in its joint ventured package of potash leases in Saskatchewan has found a potash testing from 1965 that indicated two zones of potash. The partners said PotashCorp leases are to the immediate south of its leasehold, while a permit by BHP Billiton is adjacent. In other news, the partners have commissioned a survey of recently acquired potash claims in Manitoba along the Saskatchewan border. Once completed in a few weeks, the partners plan to finalize drill permits.
Vancouver-Raytec Metals Corp. said July 17 that it has its first exploration permit from the government of Saskatchewan on the company’s KP441 potash claim in central Saskatchewan. The company is now in the process of awarding a contract for the commencement of 2D and 3D seismic work on the claim in advance of a proposed phase two drill program. The permit grants the company the right to explore approximately 55,436 acres of the claim block in an area of both highly prospective properties and producing potash mines. In addition, the company is also seeking a permit for another 8,640 acres, located directly southwest of Raytec’s KP441 potash disposition within an area of influence to the company’s recently announced NI43-101 resource estimate. This area lies within BHP Billiton’s KP279 and KP305 potash dispositions. The company is now awaiting the receipt of exploration permits on its KP455, KP466, and KP467 claims, which are contiguous with the KP441 potash claim along with the KP452 potash claim in south-central Saskatchewan. These claims cover an additional 202,560 acres.
Toronto-Allana Resources Inc. reports that it has closed its previously announced acquisition of 100 percent of Latin American Potash Corp. (LAPC), which holds potash-prospective assets in Argentina. LAPC holds 154,000 hectares in Neuquen province. Some of the properties adjoin Rio Tinto’s Potasio Rio Colorado project. As a result of the acquisition, Allana says it holds one of the largest land positions in the Neuquen Basin. In consideration of 100 percent of the outstanding shares of LAPC, Allana paid LAPC shareholders C$130,000 and issued an aggregate of 3,000,000 Allana common shares. Allana says it continues to search for significant, world-class potash assets, with a focus on Latin America, Canada, and Eastern Africa. Allana is a publicly-traded corporation with a focus on the acquisition and development of potash assets internationally.
Detroit-The city council has decided to take the advice it’s been getting from the experts and leave the $47 million contract Synagro Technologies has with the Detroit Water and Sewage District in place. The council voted 4-2 against rescinding the agreement just before recessing until early September. The governing panel had been told by the city legal department, and then in a review opinion by its own research and analysis division, that there was no legal basis to act because Synagro had not violated the terms of the contract. Those rulings were backed up by DWSD officials, who opposed taking away the contract for those same reasons and also because of the high costs of finding a replacement or doing without. DWSD Public Affairs Manager said the departure of Synagro would have required ramping up with more incineration and finding someone else to take care of land application and landfill disposal. Houston-based Synagro claims its technology and services provide much needed environmental benefits to Detroit, especially the residents of the southwestern part of the city, who have been long burdened by the affects of an obsolete incinerator. Synagro is replacing the obsolete multi-hearth incinerators with new state-of-the-art fluidized bed technology, which will reduce the city’s greenhouse gas emissions by more than 65 percent. According to DWSD, Synagro is still in the process of obtaining the necessary permits for construction. As part of the contract Synagro has the option of pellitization, diverting materials from landfills to land-application recycling, which the company believes will also save the city millions of dollars. The office of Barbara-Rose Collins, one of two on the council to vote for rescinding, told Green Markets the Synagro contract will continue under the scrutiny of the research and analysis staff. “Currently there has been no breach,” an assistant, who asked not to be identified, stated. “But the research department will be monitoring the contract as it does with all city contracts to see if a breach occurs.” Local authorities are being investigated for having accepted payments from a former Synagro official who was lobbying to get the contract approved.
Derby, Ohio-The Ohio EPA is investigating how a heavy downpour swept fertilizer from a holding trench at Derby Champaign Landmark into a creek and killed as many as 7,000 minnow fish. According to spokeswoman Erin Strouse, the incident July 22 didn’t involve a spill or a release, but rather contaminated water that was pushed out of the trench built around a concrete pad. Strouse said a state natural resources team walked a two-mile stretch of Greenbrier Creek to take a count of the dead fish and is continuing to look into the mishap. Field samples taken at the time showed ammonia concentrations in the water, but a laboratory analysis is needed for more conclusive results. In the meantime, she added, Champaign Landmark has pumped out the rest of the contaminated water in the trench and is bringing in a consulting geologist to recommend a remedy. She said a meeting was scheduled with all parties toward the end of the week to discuss methods of preventing future discharges. Nearby residents have been assured that the contaminated water has not affected their wells, which provide drinking and culinary supplies. Strouse said the facility experienced fertilizer spills several years ago and has undergone changes in ownership and management. A notice of violation is still under consideration.
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