All Posts from June 7, 2019

Quadra Chemicals Ltd. and Quadra Chemicals Inc. – Management Brief

Management Briefs

Tony Infilise, co-founder and CEO of Quadra Chemicals Ltd. (Canada) and Quadra Chemicals Inc. (U.S.), announced on May 28 the appointment of Philip Infilise, Vice President Resources, as his successor as CEO of both Quadra companies, effective Oct. 1, 2020. Effective immediately, Philip will report to Tony Infilise in a transitional CEO role while ensuring the successful transfer of the Resources Division and delivery of several key corporate objectives, including Quadra’s Digital Transformation, an initiative that is well underway.

Tony Infilise, who has led Quadra as CEO for 43 years, will focus as of Oct. 1, 2020, on his role as Chairman of the Board of Infilise Holdings Inc., Quadra’s parent company, while continuing to be a resource to support the continued success and growth of Quadra and its team.

The CEO succession announcement follows the appointment on Oct. 1, 2017 of Anne-Marie Infilise as President. The shared leadership model currently in place between the CEO and President will continue.

Philip joined Quadra in 2000 as an Account Manager,where he was mandated to build a market presence for the original Quadra Chemicals Inc. (QCI) in the USA. Philip has subsequently held various roles throughout the organization. He attended Concordia University, the University of Industrial Distribution, sponsored by Purdue University, and completed the Queens University Executive Program. He is currently enrolled in the Massachusetts Institute of Technology Strategy & Innovation Program.

Effective Oct. 1, 2019, Normand Goyer is appointed Vice President Resources. He joined Quadra’s Infilise Holdings as Vice President in 2014, and was appointed Quadra’s Corporate Vice President in November 2018. His previous experience includes positions at Univar, Eastman Chemicals, Lafarge and Givaudan. He is a graduate of McGill University with a B.Sc in Chemistry.

To support the high priority of Digital Transformation, the company said Quadra’s Chief Digital Officer, Michel Lamba, will report to Philip Infilise as of Oct. 1, 2019.

EuroChem Continues to Grow Brazil Business; Adds Third New Plant Within Year

Brazil, Europe, News, News Briefs

EuroChem Group AG, Zug, Switzerland, announced on June 4 the opening of a third new fertilizer blending plant in Brazil. The new 27,000m2 facility at Araguari in Minas Gerais, a state in the southeastern part of the country, is another step in the continued expansion of EuroChem’s subsidiary, Fertilizantes Tocantins (FTO). EuroChem purchased a majority stake in FTO, a fertilizer blender and distributor, in 2016 (GM July 8, 2016), and has since added the three new blending plants to the six already in FCT’s portfolio.

The new plant will produce up to 6,000 mt/d fertilizer with a storage capacity of 100,000 mt, and create 200 new direct and indirect jobs.

“Brazil is an important growth market for us, and our new plant at Araguari marks the latest stage of our expansion in Latin America” said EuroChem CEO Petter Ostbo. “I’m delighted by the progress we are making here, and we will continue to provide high-quality fertilizers to our growing customer base.”

The Araguari site also has a direct rail connection from the Atlantic seaport of Vitoria, about 520km northeast of Rio de Janeiro, facilitating deliveries to local customers of specialty fertilizers produced by EuroChem in Europe. These include Nitrophoska®, CAN, and NPS.

“The Araguari plant marks our entry into the southeastern region of Brazil, a strategically important part of the country” said FTO CEO José Eduardo Motta. “After the opening of two other major plants within the past year, at Sinop (Matto Grosso) and Catalão (Goias State) (GM June 1; July 20, 2018), our focus is now on the consolidation of these new markets so we can continue to maintain our successful rate of growth.”

FTO said it sold more than 1.8 million mt of fertilizers in 2018, making it one of the biggest fertilizer providers in Brazil. In addition to Araguari, Catalão, and Sinop, FTO’s other six plants are located in Porto Nacional, São Luis, Querência, Rondonópolis, Barcarena, and Anápolis, with a corporate office in Goiânia, employing 600 people. FTO has been expanding upon its already strong presence in the north, northeast, and midwest farming regions of the country.

In addition to it Brazil interests, EuroChem also owns Emerger Fertilizantes SA, a distributor of premium and standard fertilizers in Argentina that it acquired in 2017 (GM Aug. 11, 2017).

Omniz Holdings Inc. – Management Brief

Africa, Management Briefs

South Africa’s Omnia Holdings Inc., Bryanston, said on June 6 Chairman Rod Humphris has decided to step down as chairman effective immediately, and will retire from the board at the September Annual General Meeting. Ralph Havenstein, who has been the lead independent director, succeeds Humphris as chairman. Havenstein is the former CEO of Anglo American Platinum.

Humphris has been non-independent, non-executive chairman since 2017. He joined Omnia in 1982 and became a member of the board 20 years ago.

Omnia shares slid to a 10-year low on May 31 after the company said it was looking at the issuance of fresh equity to cut debt. In April, the company had said there was no such need.

Arab Potash Co. – Management Brief

Jordan, Management Briefs, Potash

Arab Potash Co. (APC) has announced the appointment of Rashid Lubani as Vice President for Marketing and Sales. Lubani takes over from Jafar Salem, who has been appointed as a Senior Advisor for the Chairman of the Board.

Prior to his recent appointment, Lubani held the position of APC’s Sales Director since 2008. He has also held several other positions at the company, including Chief Representative of APC’s Overseas Office in Malaysia, and Sales Manager – Asia. Lubani also served as APC’s Secretary of the Board of Directors, and as a member of the Board of Directors of several subsidiary companies of APC.

Arianne Pursues Financing, Offtake with State-Owned Chinese Firm

Canada, China, News, News Briefs

Arianne Phosphate, Saguenay, Quebec, a development-stage phosphate mining company advancing the Lac à Paul project in Quebec’s Saguenay-Lac-Saint-Jean region, said on June 4 it has entered into a nonbinding Memorandum of Understanding (MOU) with China Machinery Industry Construction Group Inc. (Sinoconst), a large Chinese state-owned enterprise. The two agree to work towards a final binding agreement relating to the development of Arianne’s Lac à Paul project, which would include full project financing.

On a parallel track, efforts to secure offtake are expected to be undertaken by Sinoconst in support of the financing package discussed under the MOU. Participation in the development of Lac à Paul on the part of Sinoconst is tied to finalized project financing commitments.

“This is a very exciting development for Arianne and the advancement of its Lac à Paul project,” said Arianne CEO Brian Ostroff, Arianne CEO. “Where China used to be self-sufficient in phosphate, many industry analysts now see the country heading for a deficit in phosphate rock concentrate, joining the likes of India, another country of over 1 billion people. Arianne believes that concluding definitive financing agreements would be mutually beneficial; it would allow Arianne the financing necessary to develop its mine and allow China, through Sinoconst, an opportunity to access high-quality phosphate concentrate.

“The intent is now for both parties to reach a fully binding agreement and, as per the MOU, would directly tie Sinoconst’s participation in the project’s development to their ability to provide necessary project financing which, we believe, will be supported by offtake discussions; a structure often seen in Chinese involvement in large mining projects. For Arianne, this is a welcomed addition to discussions we have ongoing with other potential suppliers, offtakers and financial partners and our feeling is that this should accelerate all discussions,” said Ostroff.

Although no assurances can be made as to a final agreement being reached, Arianne said conversations surrounding the MOU have been ongoing for some time, adding that both sides have indicated a strong willingness to progress to a final binding agreement in as quick a time frame as possible.

Arianne noted that Sinoconst, founded in 1953, has been involved in hundreds of projects in 40 separate countries in different sectors including both mining and agriculture, and has in-depth strategic cooperation relationships with many large financial institutions that can assist in the financing of these large developments.

It also noted that Sinoconst, and its subsidiary China Machinery Industry Hainan Co. Ltd., are striving to expand their import and export trading businesses that currently cover machinery, agricultural, and food products and minerals.

 

OSHA Cites Florida Company for Anhydrous Ammonia Release

Ammonia, Florida, News, News Briefs

The U.S. Occupational Safety and Health Administration (OSHA) announced on June 3 that it has cited Duda Farm Fresh Foods Inc., Belle Glade, Fla., for exposing employees to workplace safety hazards after a worker required medical treatment due to an anhydrous ammonia leak in the farm’s packaging house. The company faces $95,472 in penalties.

OSHA cited the farm for failing to develop procedures for notifying employees of emergencies and evacuation; failing to have a written emergency response plan; failing to provide safety and health training to employees operating ammonia refrigeration systems; and failing to ensure that employees required to respond to ammonia releases were provided a full-face respirator fit test.

The company has 15 business days from receipt of the citations and proposed penalties to comply, request an informal conference with OSHA’s area director, or contest the findings before the independent OSHA Review Commission.

Itronics YTD Sales Up 42 Percent

News, News Briefs, Specialty

Itronics Inc., Reno, Nev., said on June 4 sales of its Gold’n Gro fertilizer were up 42 percent for the January-May period compared to year-ago levels. The company cited a combination of factors, including increased demand within the existing customer base, new demand from addition of new retail outlets to the customer base, and expanding interest in additional its fertilizers within its product line.

“The company sales have returned to levels not seen in many years,” said Dr. John Whitney, Itronics President. “We have greatly expanded our sales efforts and are now realizing outstanding results from those efforts. At current order rates we expect to exceed 2018 full-year fertilizer sales in June.

“We are expecting that sales will continue at higher levels in the second half of the year, reducing the seasonality of the business and greatly expanding annual sales levels, ” Whitney added. Intronics 2018 fertilizer sales revenues were $1.24 million.

The company said it continues to conduct field trials of its products, and expects these results to further boost sales.

Nutrien Finance Could Triple Loans in Five Years

News, News Briefs, Saskatchewan

Nutrien Ltd., Saskatoon, which currently loans some $2 billion to farmers, sees the potential to triple that number within five years, it told Green Markets last week. Nutrien said at its Investor Day on May 28 that farmers can seamlessly apply for credit on its new digital platform while using the three major tools on the site—farm planning, digital agronomy, and omni-channel (e-commerce).

“We know whoever buys with financing tends to buy a lot more,” Nutrien CFO Pedro Farah told Reuters. “It increases the depth of the relationship (with farmers) and the stickiness.” He said the company has approached credit rating agencies to raise its debt to equity ratio and expand lending.

Nutrien, which has about a 20 percent share of the U.S. retail market, believes it has a lot of room for further expansion, with its sights set on both independents and cooperatives.

Highfield Muga K Project Receives Permit

Europe, News, News Briefs, Potash

ASX-listed Highfield Resources Ltd., Navarre, Spain, reports that as of May 31 Spain’s Ministry for Ecological Transition approved the granting of a positive Declaración de Impacto Ambiental (DIA) for the company’s Muga Potash Project in the country’s Ebro potash basis in northern Spain. Highfield said the DIA means the company has now received the key environmental permit required to move the project forward.

Highfield said it will now focus on securing the mining concession and the construction permits necessary to take the project into construction. It will also commit to the purchase of certain long lead time mining and process plant equipment, as well as completion of the final project design.

Highfield noted that it updated its mineral resource statement on the project in January to 108.7 million mt 10.2 percent K2O of proved and probable ore reserves, with a prove ore estimate of 42.9 million mt at 10.2 percent K2O. Last November, it refreshed a Memorandum of Understanding (MOU) with Spanish contractor Acciona Infraestructuras SA for construction of the mine.

Highfield has four additional 100 percent-owned potash projects in the Ebro region, including Vipasca, Pintanos, Izaga, and Sierra del Perdon.

Incitec Pivot Lines Up Gas Deal for Gibson Island Plant Through 2022

Ammonia, Ammonium Sulfate, Australia, News, News Briefs, Urea

Incitec Pivot Ltd. (IPL), Southbank, Victoria, on June 4 announced that it will continue manufacturing operations at its Gibson Island nitrogen plant at Brisbane, Queensland, after confirming a new gas supply agreement through December 2022, securing the employment of approximately 400 workers at the site. The company had warned that it would have to close the plant if a gas supply contract could not be secured at the right price (GM May 24, p. 31). Its current temporary one-year gas contract expires Dec 31, 2019.

IPL said the multiple arrangements reached with Australia Pacific LNG (APLNG) will meet the Gibson Island plant’s gas supply needs from April 1, 2020, through Dec. 31, 2022. A major turnaround, which will take place early next year at the facility and is expected to take about two months, is necessary for the plant to stay in operation through 2022, IPL said. The turnaround will cost approximately A$60 million (approximately US$41.9 million) and will be depreciated over three years. The company expects a circa A$100 million, three-year investment in major plant maintenance at the plant.

Gas supply from APLNG will start following the completion of the turnaround.

“We are pleased to partner with Australia Pacific LNG to obtain affordable gas for the continued operation of the Gibson Island plant. We also appreciate the support of APA Group, who will transport the gas to Gibson Island,” said IPL Managing Director and CEO Jeanne Johns.

Johns also acknowledged the support of the Queensland Government, particularly Premier Annastacia Palaszczuk and her government’s domestic-only gas policy initiative to support local manufacturing businesses and jobs, in securing the gas supply deal.

The arrangements enabling the continuation of operations at the Gibson Island plant remain subject to APLNG’s receipt of the Australian Foreign Investment Review Board’s (FIRB) approval. APLNG is a joint venture between Conoco Phillips (37.5 percent), Origin Energy (37.5 percent), and Sinopec (25 percent).

IPL last year said it had made a commitment to “leaving no stone unturned” regarding securing affordable gas supply for the Gibson Island facility, but had emphasized it could not make a decision that “destroys value.”

Johns told analysts in the company’s fiscal half-year earnings call last month the threshold to keep the plant open was all down to the gas price that could be secured.

“When we did the one-year gas supply extension, it was to keep the option open,” she had said. “We are now looking for a three-year extension, which has to justify an upfront investment in capacity for a turnaround. So therefore by definition, it requires a lower gas price than we had for a single year in order to justify it.”

IPL signed the agreements for the interim gas supply and delivery to Gibson Island through to Dec. 31, 2019 in June 2018 with Central Petroleum Ltd. and certain of its subsidiaries, Macquarie Mereenie Pty Ltd., subsidiaries of APA Group, and Jemena Northern Gas Pipeline Pty Ltd. (GM June 29, 2018).

IPL said it expects group earnings before interest and tax (EBIT) in FY2020 to increase by approximately A$5 million over forecast EBIT in FY2019 as a result of the continued operation of the Gibson Island plant. It said this assumed a urea price of US$280/mt and a forex rate of US$0.69, which approximate current spot prices. The FY2020 EBIT expectation includes the impact of the major turnaround at the Gibson Island plant.

As previously announced, IPL and Central Petroleum are continuing their exploration of potential gas supply to feed the Gibson Island plant beyond 2022 from a gas tenement acreage in Queensland.

The Gibson Island plant has nameplate capacity to manufacture 300,000 mt/y of ammonia, 280,000 mt/y of urea, and 200,000 mt/y of ammonium sulfate, according to IPL’s website. The plant’s 2019 fiscal first-half (Oct.1, 2018-March 31, 2019) urea equivalent production was down 38 percent, to 136,900 mt from 220,100 mt, though this was due to a planned outage for maintenance (GM May 24, p. 31).

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