SiteOne Makes 13th Acquisition in 2018

SiteOne® Landscape Supply Inc., Roswell, Ga., announced on Dec. 6 that it has acquired All Around Landscape Supply and Santa Ynez Stone & Topsoil. These companies serve the greater Santa Barbara County, Calif., market with four locations focused on the distribution of irrigation, hardscapes, and landscape supplies to landscape professionals.

“All Around and Santa Ynez Stone are a great fit with SiteOne, as they expand our geographical presence in California to Santa Barbara County. This acquisition aligns with our mission to be the best full-line distributor to landscape professionals in all of the markets we serve,” said Doug Black, SiteOne chairman and CEO.

“All Around and Santa Ynez Stone have an outstanding history and talented team that shares SiteOne’s passion and desire to provide quality products, exceptional service and superior value to our customers,” added Black. “This is our thirteenth acquisition in 2018 as we continue to expand the number of markets in which we provide a full range of landscape supplies and services to our customers. Combined, the thirteen acquisitions account for $230 million in combined annualized revenue.”

Bunge Ltd. – Management Brief

Bunge Ltd., White Plains, N.Y., said on Dec. 5 that J. Erik Fyrwald, 59, was appointed to its board of directors, effective immediately. He is currently the CEO of Syngenta, a global agriculture company, a position he has held since 2016. He is also an executive director on the Syngenta board of directors and chairman of the not-for-profit Syngenta Foundation.

Prior to joining Syngenta, Fyrwald served since 2012 as president and CEO of Univar, a distributor of chemicals and related services. He also previously served as president of Ecolab, a provider of cleaning, sanitation, water treatment, and oil and gas products and services, and as chairman, president, and CEO of Nalco, a water treatment and oil and gas products and services company. He was also group vice president of the Agriculture and Nutrition Division of DuPont from 2003-2008.

Fyrwald also serves on the boards of Eli Lilly and Co., CropLife International, and the Swiss-American Chamber of Commerce.

He holds a B.S. in Chemical Engineering from the University of Delaware, and completed the Advanced Management Program at Harvard Business School.

BLM Releases Draft EIS for Bayer Phosphate Mine

The U.S. Bureau of Land Management’s (BLM) Idaho Falls District has released a draft environmental impact statement (EIS) analyzing a mine and reclamation plan that P4 Productions LLC, a subsidiary of Bayer, formerly Monsanto, submitted for a proposed Caldwell Canyon Mine in southeastern Idaho’s Caribou County.

P4 has proposed a plan to develop several phosphate leases that the company owns on Schmidt Ridge, about 13 miles northeast of Soda Springs, Idaho, including modifying leases to add about 656 acres needed to achieve maximum ore recovery. The BLM and other agencies cooperating on the draft EIS are seeking public input to ensure that all aspects of the proposed action have been thoroughly analyzed.

In total, the mining and support facilities would disturb about 1,559 acres – 153 acres of BLM public land, seven acres of previously disturbed U.S. Forest Service land, 230 acres of Idaho State Endowment land, and 1,169 acres of private land. The expected mine life would be about 40 years, followed by an expected two years of reclamation.

P4 would use mining methods at the Caldwell Canyon Mine similar to those used at the Blackfoot Bridge Mine, and would begin in time to transition from the Blackfoot Bridge Mine when it is depleted. Blackfoot Bridge, near the Blackfoot River, has an estimated 11 years of phosphate ore left.

The proposed Caldwell Canyon project consists of developing two new open mine pits; construction of haul and access roads; installation of a power line, water management features, monitoring wells, and shop and office facilities; implementation of environmental protection measures; and reclamation. Ore would be sequentially removed from the north and south pits in 10 phases lasting three to six years each.

The preferred alternative for Caldwell Canyon includes use of an earthen cover, combined with a geo-synthetic cover, over selected portions of mine waste rock to meet water quality standards. Ore would be hauled via truck to an existing railroad load out and then by rail to Bayer’s elemental phosphorus processing plant in Soda Springs. Mine overburden would be placed as backfill in the mined out Dry Valley Mine pit and the Caldwell Canyon pits as they are mined out.

Mining below the water table would occur at the south and north ends of a pit where ground water interception wells would be installed to draw down levels below the planned pit bottom to reduce water flowing into the pit. The water would be stored in ponds. With the exception of a culverted haul road crossing, P4 proposes to avoid Caldwell Creek, a non-fish-bearing stream between two pits. An earthen cap would reduce precipitation infiltrating into pits.

The preferred alternative analyzed in the EIS seeks a balance between resource extraction and conservation, while providing opportunities for high-paying jobs in the local community. If approved, the Caldwell Canyon Mine would sustain about 185 mining jobs and 585 plant jobs for an additional 40 years, and would aid the region by providing $49 million annually in payroll, taxes, royalties, and purchases, as well as sustaining support and service jobs.

Cooperating agencies are the U.S. Army Corps of Engineers, Idaho Department of Environmental Quality, Idaho Department of State Lands, and Idaho Office of Energy and Mineral Resources. Due to the small amount of national forest system land impacted by the project, the Forest Service has decided not to participate as a cooperating agency, but BLM will solicit input from the Forest Service, Shoshone-Bannock Tribes, Idaho Department of Fish & Game, and U.S. Fish & Wildlife Service.

The BLM will make decisions related to approval of the Caldwell Canyon Mine and reclamation plan and/or alternatives, enlargement of the existing leases, and issuance of authorizations for infrastructure. Public meetings will be in Pocatello on Dec. 18 and Soda Springs on Dec. 19. Written comments must be submitted by Jan. 14.

Nutrien Closes Sale of SQM Shares

Nutrien Ltd., Saskatoon, announced on Dec. 5 that it has closed the sale of its remaining SQM shares to Tianqi Lithium Corp. through an open auction process on the Santiago Stock Exchange for gross proceeds of approximately US$4.1 billion. This is the final divestiture required by the Competition Commission of India and Ministry of Commerce in China in providing their clearance for the merger of Agrium and PotashCorp to form Nutrien. Net proceeds from the sale of all of the equity investments in 2018 are expected to total approximately US$5 billion.

“Closing the sale of our investment in SQM marks the conclusion of a major deliverable for Nutrien,” said Chuck Magro, Nutrien president and CEO. “The receipt of US$4.1 billion in gross proceeds provides an opportunity to deploy the cash to generate significant shareholder value. With the sale of our investments in Arab Potash Co. and SQM in the fourth quarter, along with significant seasonal cash flow generated from our Retail business, we expect our net debt to adjusted EBITDA ratio to decline below 2 by the end of 2018. As a result, Nutrien has ample flexibility to both return capital to shareholders and grow the business with a disciplined investment approach.”

Major Nutrien priorities for the extra funds include boosting the return to shareholders, Retail expansion in North America, Australia, and Brazil, and the growth of proprietary products (GM Nov. 30, p. 1). The company is also looking at a smaller expenditure for brownfield expansions to nitrogen plants.

ICL Sues IBM for $300 M

Israel Chemicals Ltd. (ICL), Tel Aviv, on Dec. 3 filed a lawsuit in Tel Aviv District Court against IBM Israel in relation to IBM’s alleged failure to supply ICL with a major global information system or harmonization project, according to Bloomberg. ICL seeks $300 million in compensation. ICL said it filed the suit after exhausting attempts at mediation.

The harmonization project, which was contracted in 2012, was abandoned in 2016, and ICL made a one-time write off of $282 million in third-quarter 2016 as a result, according to Israel’s Globes. ICL alleges incompetence on IBM’s part.

ICL said the system handed over to it in 2016 was unstable, not integrated, and dysfunctional. IBM issued a statement saying the case was without merit and that it would vigorously defend against it.

Uralchem Seeks Cooperation with Kenya

Uralchem, Moscow, intends to expand cooperation with Kenya in the field of mineral fertilizer production. Board Chairman Dmitry Mazepin visited Nairobi on Dec. 1-2, where he met with President of the Republic of Kenya Uhuru Kenyatta. The main objective of the trip was business development in the African region.

“Historically, the Soviet Union and Kenya did not have many opportunities to cooperate, but now the world is changing. Africa is opening its doors to investment and developing, and wants to build relations,” said Mazepin. “The president of Kenya said that he was ready for closer relations with Russia and invited Russian companies to cooperate. Uralchem and Uralkali will take this opportunity to expand their business in Africa and, in particular, in Kenya.”

Uralchem said it reached its first agreements with Kenya. The two Russian companies are expected to expand their presence in the country through cooperation with the largest agricultural organizations. Uralchem also anticipates the construction of port infrastructure and joint projects in the mining industry.

Uralchem and Uralkali have been mulling a hub in Zimbabwe in order to export fertilizers to African countries, and have been beefing up their connections in Africa this year (GM Feb. 9, p. 27; April 13, p. 30; Nov. 2, p. 30). Mazepin in April put Uralchem and Uralkali exports to southeast Africa at 100,000 mt. However, the two companies believe short-term growth could reach 500,000-600,000 mt.

Koch Foods Leak Sends Several to Hospital

The Gadsden/Etowah County Emergency Management Agency (EMA) reported that it was notified at 4:23 p.m. on Nov. 30 of an anhydrous ammonia leak at the Koch Foods poultry processing facility in Gadsden, Ala. EMA initially said 19 individuals were transported from the scene to local hospitals for evaluation and treatment; the figure was later updated to 22, according to local media, which cited EMA as saying the incident was under control by 7 p.m. and that there was no threat to the general public.

Koch Foods, Park Ridge, Ill., did not respond to inquiries. Koch Foods is not a part of Koch Industries Inc., Koch Fertilizer, or the Koch-related companies based in Wichita, Kan.

In August, Koch Foods announced a new $80 million expansion at the Gadsden complex, which will eventually add another 200 jobs to what the company calls one of the largest poultry processing plants in the U.S.

CF Reports NH3 Release at Courtright

CF Industries Holdings Inc., Deerfield, Ill., confirmed on Dec. 4 that its Courtright Nitrogen Complex in Ontario experienced an ammonia release at its urea plant at approximately 4:20 p.m. It said the incident was contained, there were no offsite impacts, and all employees were safely accounted for. CF said appropriate provincial and local emergency response officials were notified of the incident.

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