Perth-Australian mineral exploration firm Redstone Resources Ltd. reports that it has acquired a strategic phosphate exploration project in northern Brazil. Redstone says it has 18 applications for exploration licenses, all of which have been accepted by the Mineral Department of Brazil. The project is located within the main agricultural region of Amazon State, approximately 200 kilometers north of one of the main ag regions in South America ?Çô northern Mato Grosso. The project is bisected by the Trans-Amazon highway. Redstone said that surveys in the 1980s indicated surface phosphorite mineralization between 7-10 percent P205. Earlier this year, Redstone said it acquired a potash exploration project in the Aneba sub-basin in northern Brazil.
U.S. Gulf/Tampa: No new business was reported last week to test the market, leaving Tampa $585/mt DEL for now. Sources speculated that August may see another round of increases for Tampa, citing higher prices in Russia and the Mideast, as well as the outage at Burrup in Australia.
Eastern Cornbelt: Anhydrous ammonia pricing was also moving up as dealer-to-dealer trades of extra spring prepay tonnage wound down in late June. Dealers continued to report direct application taking place for replanted corn acres. Sources quoted the cash ammonia market last week at $880-$940/st FOB, with most sources touting the upper numbers for reseller tons but very few inquires being made for prompt tons.
Reference levels for ammonia, however, were another matter. One supplier on July 2 announced another $100/st increase for tons ordered and shipped from July 2 through July 11, with reference levels moving to $1,130/st FOB Mt. Vernon, Ind., $1,135/st FOB Terra Haute, Ind., and terminals in Illinois, and $1,140/st FOB Huntington, Ind., and Frankfort, Ind.
On July 7, Agrium’s ammonia postings will firm to $1,010/st FOB Illinois terminals at E. Dubuque, Niota, Meredosia and Marseilles, and $1,025/st FOB North Bend/Finney, Ohio.
Western Cornbelt: Anhydrous ammonia pricing was moving up as sales of extra spring prepay tons tapered off. Iowa sources tagged the market at a firm $1,000/st FOB for limited quantities of fall prepay, while Missouri sources reported prompt tons at $890-$900/st DEL from southern production points. Another source reported a $925/st FOB level for prompt tons last week, but said little business was being done.
On July 2, one supplier reposted ammonia for orders placed and shipped from July 3 through July 11 at $1,120 FOB Nebraska terminals; $1,125/st FOB Iowa terminals and Glenwood, Minn., and Pine Bend, Minn.; $1,130/st FOB Palmyra, Mo.; and $1,145/st FOB Grand Forks, N.D., and Velva, N.D. Agrium’s ammonia postings in the Leal, Velva, Grand Forks, and Beulah sales area in North Dakota were scheduled to firm on July 4 to $1,181/st FOB and $1,201/st DEL, up some $62/st from the company’s July 1 ammonia postings in that region.
On July 7, Agrium’s ammonia postings will firm to $995/st FOB Hoag, Neb., and $1,000/st FOB Greenwood, Neb., Mankato, Minn., and Iowa terminals at Garner, Early and Whiting.
Southern Plains: The ammonia market was tagged at $790-$830/st FOB in the region, with the lower numbers out of regional production points and the higher end out of pipeline terminals. One source said he expects brisk demand for ammonia during the preplant wheat run later in the summer, with expectations that the wheat demand will firm the ammonia market in the region.
On July 7, Agrium’s ammonia postings will firm to $940/st FOB Borger, Texas, $960/st FOB Mocane, Okla., $965/st FOB Conway, Kan., and $970/st FOB Clay Center, Kan.
South Central: The anhydrous ammonia market was quoted at $700-$750/st FOB for cash market tons, with the low FOB Memphis, Tenn. Sources reported no firm fall prepay offers out of regional terminals last week.
Western U.S.: Agrium raised its anhydrous ammonia postings again on July 4, with reference levels firming $63/st from the company’s July 1 postings to $1,246/st rail-DEL in Oregon, Washington, Idaho, and Utah; $1,266/st truck-DEL in northern Idaho and in Oregon and Washington east of the Cascades; and $1,271/st truck-DEL in Montana and northern Wyoming.
Agrium’s aqua ammonia postings firmed again on July 4 to $317/st FOB Central Ferry and Finley, Wash., up $16/st from July 1 postings.
UREA
U.S. Gulf: Most players were putting the granular market last week between $725-$735/st FOB for prompt barges. Product was reportedly being offered at $740/st FOB by the end of the week. There was some suggestion that deals could have been done lower than that range, but most sources say the market continued to rally, with much demand from rice and wheat country.
Prills were reported to have sold as high as $690/st FOB.
Eastern Cornbelt: Granular urea was quoted in a range of $735-$760/st regional terminals to the dealer, up considerably from the previous week. One source reported a $755/st FOB Peoria, Ill., price at midweek. Agrium’s urea postings were slated to move on July 4 to $775/st rail-DEL in Wisconsin, up $35/st from the July 1 reference levels and $175/st higher than May 1 postings from the company.
Western Cornbelt: Sources said urea prices were firming quickly. Most sources put the range at $720-$750/st FOB in the region last week, with most reporting the upper number as the more common dealer level as the week advanced. A Missouri source called the market a firm $745/st FOB at midweek, but said additional increases could bring it to the $775/st FOB mark before the week is out.
Agrium’s urea postings in the Northern Plains region were slated to firm again on July 4 to $770/st FOB North Dakota terminals at Alton, Colfax, Carrington, Marion, and Scranton, with rail-delivered pricing moving on that date to $775/st in Minnesota and the Dakotas. Those postings were up $35/st from the company’s July 1 postings, and reflect a $175/st increase from Agrium’s May 1 urea postings.
Southern Plains: Urea pricing was up significantly from last report. Sources tagged the market in a broad range at $740-$760/st FOB the Tulsa market, with the lower numbers reported early in the week and the higher numbers as the week advanced.
South Central: Sources reported brisk rice topdress activity in early July, and urea demand for rice will likely continue throughout the month of July. Urea pricing was up considerably from last report. Sources tagged the market at $730-$760/st FOB regional terminals to the dealer, with some locations reportedly posted as high as $770/st FOB as the week advanced
Southeast: The urea market out of port terminals had firmed significantly, sources said, with levels moving from the prior week’s low of $650/st FOB to a range of $750-$760/st FOB last week. Some locations reportedly had no tons for sale in early July.
Western U.S.: Agrium’s July 4 granular urea postings include $770-$785/st DEL in Montana and Wyoming; $795/st FOB Washington warehouses at Glade, Kennewick, Warden, and Wilson; $800/st DEL in Washington, Oregon, Idaho, and northern Nevada; $810/st DEL in northern and central Utah; and $815/st DEL in southern Utah. Those levels reflect a $35/st increase from the company’s July 1 reference levels.
Agrium’s urea postings in the California market also firmed $35/st on July 4 to $790/st FOB West Sacramento, $815/st truck-DEL in central California, and $820/st truck-DEL in northern California.
NITROGEN SOLUTIONS
U.S. Gulf: Prompt UAN barges were reported at $435-$445/st FOB ($13.59-$13.91/unit FOB). Product was reportedly being offered into the East Coast as high as $495-$500/mt DEL, and there was speculation as to whether the market had reached that point.
Correction:Green Markets is changing its U.S. Gulf NOLA barge price for the issue dated June 30, 2008, to reflect a price range of $420-$440 ($13.13-$13.75/unit FOB). The previously-reported range inadvertently included forward cargoes that should not have been included in a prompt range.
Eastern Cornbelt: UAN-32 remained in a broad range at $445-$465/st ($13.91-$14.53/unit) FOB regional terminals to the dealer, with forward contract pricing for August and beyond reported in the $15.50-$15.80/unit FOB range.
Western Cornbelt: UAN remained at $13.91-$14.25/unit FOB in the region, with most sources quoting the dealer market for UAN-32 firmly in the $445-$450/st ($13.91-$14.06/unit) FOB level last week.
Southern Plains: The UAN-32 market was quoted at $418-$430/st ($13.06-$13.44/unit) FOB regional terminals, with reports of very few forward offers available. One source tagged the UAN-28 market last week at $370/st ($13.21/unit) FOB most regional production points.
South Central: UAN-32 was tagged in a broad range at $435-$465/st ($13.59-$14.53/unit) FOB terminals in the region, with the upper level reflecting new dealer reference pricing FOB Vicksburg, Miss. One source quoted the common dealer price at midweek in the $450-$460/st ($14.06-$14.38/unit) FOB to the dealer.
Southeast: The UAN market was quoted at $12.97-$13.33/unit FOB regional terminals, with the upper level also reflecting the Baltimore dealer market. New vessel tons were reportedly being indicated at the $495/mt C&F level, but nothing has been traded at that level.
AMMONIUM NITRATE
U.S. Gulf: Barge prices were reported to be moving up as buyers actually looking for barges were having a hard time finding them. As a result, there were reports of trades as high as $405-$410/st FOB.
Western Cornbelt: Ammonium nitrate pricing was up from last report, with sources tagging the regional market at $420-$455/st FOB to the dealer.
Southern Plains: Ammonium nitrate was reported at $420-$425/st FOB Catoosa, Okla., up some $20-$25/st from last report.
South Central: Ammonium nitrate was pegged at $410-$415/st FOB in the region, up slightly from last report.
Southeast: Ammonium nitrate was $410-$420/st FOB in the region.
AMMONIUM SULFATE
Eastern Cornbelt: Granular ammonium sulfate continued to firm as well, with sources quoting the dealer market at $420-$435/st FOB in the region.
Western Cornbelt: Granular ammonium sulfate was quoted in a very broad range at $375-$435/st FOB, with the low reported out of some Missouri shipping points and the upper end reflecting new producer postings in the region.
Southern Plains: Ammonium sulfate pricing in the region was on the march. Previous levels in the $325-$355/st range FOB range were in effect early in the week for granular ammonium sulfate, but new postings were taking effect. On July 2, reference levels FOB Plainview, Texas, moved to $415/st for granular from the previous $355/st FOB level; $405/st FOB for coarse grade from the previous $345/st; and $380/st FOB for standard grade from the previous $320/st FOB level. Effective July 7, ammonium sulfate postings from American Plant Food Corp. were slated to firm $50/st, with granular postings FOB Freeport, Texas, moving on that date to $375/st FOB.
South Central: Granular ammonium sulfate was reported at $390-$410/st FOB in the region last week, up significantly from last report
Southeast: Ammonium sulfate was up considerably from last report. DSM Chemicals moved its reference prices up $60/st across the board on June 23, with postings FOB Augusta, Ga., firming to $420/st for granular and $370/st FOB for standard grade. The company’s delivered postings into Florida moved to $440/st for granular and $380/st rail-DEL for standard.
Honeywell on June 23 moved its granular ammonium sulfate postings up to $435/st rail-DEL or FOB warehouse, with mid-grade sulfate postings moving to $420/st FOB or rail-DEL to the dealer.
PHOSPHATES
Central Florida: Activity was picking up in the Central Florida phosphate market last week, at least in terms of forward sales. Still, producers were busy loading domestic orders received earlier and for export. An October DAP sale for a unit train was made at $1,095/st FOB and a unit train of MAP for October was done at $1,120/st FOB; however, neither of those sales affected the current price range, which was based on prompt sales only.
Mosaic’s previously announced partial restart of its South Pierce processing plant will increase production by about 500,000 st. The South Pierce plant will make only sulfuric acid, and granulation will be done at the company’s Lake Wales facility.
The Central Florida DAP price range was $1,070-$1,080/st FOB. Mosaic was reported to have sold at $1,080/st late in the week. PCS Sales’s Central Florida reference price remained at $1,050/st FOB for DAP. 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 increased its prices from $1,050/st FOB to $1,075/st FOB for trucks and from $1,045/st FOB to $1,070/st FOB for rail shipments.
U.S. Gulf: Apparently most of the cheap barges that had been available in the past several weeks were mostly gone by the end of last week, and prices began to rise. In addition, prices on forward sales of phosphate barges also took a sharp increase last week. Very early in the period, four DAP barges scheduled for loading during the first half of August were purchased at only $1,010/st FOB, but a number of DAP barges for delivery in September were sold at $1,090/st FOB and MAP barges for October delivery brought $1,125/st FOB.
Meanwhile, flooding along the Mississippi River was receding last week, but crops in Iowa and some other areas were underwater and their status had not been fully determined. Barge traffic in many areas came to a halt.
A trader said large dealers were seeking to prepay for phosphates, but added his company was reluctant to take those orders because of the uncertainty of its barge supply and what prices will be at the time of delivery. However, some traders were taking those deals, and Mosaic was as well. With the disappearance of lower-priced phosphate barges, prices appear to be heading upward.
The wheat crop in Oklahoma was said to be “excellent,” and those farmers will be in the market for additional phosphate and other fertilizer products for the fall season. However, pastureland will not likely see any phosphate applications anytime soon.
Warehouse prices were moving up last week to between $1,075/st FOB and $1,100/st FOB, but those were still below replacement cost, after taking transportation and throughput cost into the equation.
For phosphate producers importing rock from North Africa, the news was not good. Prices have moved up from around $300/st FOB to $450-$500/st FOB. In addition, prices for sulfur and ammonia were also expected to increase – all of which will cut into profits.
Based on new prompt sales, the price range last week moved from $1,010-$1,045/st FOB the previous week to $1,070-$1,075/st FOB. MAP barges were available at prices $25-$75/st FOB more than DAP. Mosaic’s asking price for NOLA DAP barges increased to $1,100/st FOB and $1,1125/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: Most sources pegged the DAP market last week at $1,075-$1,107/st FOB regional warehouses, with MAP reported at $1,095-$1,145/st FOB to the dealer. Both ranges were up slightly from the previous week. No current dealer prices were reported for 10-34-0 in the region.
Western Cornbelt: DAP was generally quoted at $1,075-$1,100/st FOB regional warehouses, with MAP at $1,095-$1,145/st FOB. One Missouri source tagged the dealer market in his location at $1,085/st FOB for DAP and $1,135/st FOB for MAP, while an Iowa source quoted the market at a firm $1,100/st FOB for DAP and $1,145/st FOB for MAP.
The only current price quote for 10-34-0 last week came from an Iowa source at $1,070/st FOB for very limited spot market tons.
Southern Plains: DAP was quoted at $1,075-$1,100/st FOB the Tulsa market, with MAP tagged at $1,135-$1,140/st FOB. Both ranges were up considerably from last report. 10-34-0 was reported at $1,015-$1,020/st FOB in the region, and remained in very tight supply.
South Central: DAP was quoted at $1,075-$1,100/st FOB regional warehouses, also up from last report. The MAP market was pegged at $1,095-$1,125/st FOB to the dealer. TSP was reported in a broad range at $975-$1,030/st FOB warehouses to the dealer, with most quotes in the upper end of that range as the week advanced.
U.S. Export: India was preparing to cut a deal with Russia last week for additional supplies of both phosphate and potash. PhosChem was reported to have sold two vessels to India.
In Argentina, farmers went back on strike again last week to protest high export tariffs on food products proposed by President Cristina Fernandez, which will have a continuing impact on phosphate sales to that country and export sales out of the U.S.
The export DAP price range was unchanged at $1,160-$1,205 mt.
POTASH
Eastern Cornbelt: Potash was quoted at $800-$850/st FOB regional warehouses on the secondary market, depending on grade and location. Potash barges were reportedly north of the $800/st level FOB the U.S. Gulf. One source said fall tons were being referenced for $885/st FOB for September shipment and up to $925/st FOB for November tons.
Western Cornbelt: Potash was pegged at $795-$830/st FOB regional warehouses for brokered or reseller tons. One source said producer tons are 100 percent allocated through the third quarter.
Southern Plains: The potash market was quoted $755-$800/st FOB regional warehouses, with several sources tagging the market at a firm $780-$785/st FOB on the Arkansas River at midweek. The Carlsbad, N.M., mine price was reported at $705-$710/st FOB for allocated third quarter tons, depending on grade.
South Central: Potash was up dramatically from last report. Sources tagged the warehouse market in an incredibly broad range of $775-$875/st FOB, with the upper end reflecting reference pricing FOB Vicksburg. An Arkansas source quoted the common dealer price at the $830/st FOB level at midweek.
Southeast: Potash was pegged at $635-$650/st FOB regional warehouses based on June producer postings for allocated tons. Regional sources reported no updated numbers last week.
SULFUR
Tampa: At least one phosphate producer confirmed that early negotiations on new prices for third quarter sulfur contracts had begun but were in a very early stage. Although not confirmed, sulfur producers were believed to be seeking an increase from as low as $175/lt to more than $200/lt. Most in the industry said they did not think much progress would be made until at least the Southwestern Fertilizer Conference at San Antonio July 12-16. In what could be an indication the sharp price rises in sulfur may be slowing on the world market, prices at the UAE rose only $20/mt FOB to $820/mt FOB. The previous month, the UAE hiked its price by $80/mt FOB. Those prices were still far higher than those paid in this country.
Inventories of sulfur appeared to be slightly improved last week. The priller at Galveston was again receiving some supplies. Refineries have been using increased amounts of heavy crude oil, which produces more sulfur that the preferred light crude. In addition, a source said flooding in the northern Midwest had stopped some shipments of sulfur and that those producers were having difficulty finding a market despite offering sulfur at prices between $300/lt and $400/lt, although it was not clear what the transportation situation was for those producers.
Some industrial customers were said to be balking at high prices, but the amount consumed by them amounts to only a fraction that used by the phosphate industry.
Vancouver: A new contract with South Africa called for prices of $830/mt FOB, which was a stiff hike from the $300/mt FOB paid by that country under the previous contract.
PCT, one of the large sulfur docks at Vancouver, will be shut down for turnaround and maintenance beginning July 8 and will remain closed until the beginning of August.
China, which has restricted the amount of imported sulfur until sometime after the Summer Olympics, was still in negotiations for new a contract.
Correction: Last week, Green Markets reported Valero Energy was building a $600 million sulfur recovery unit at its Benicia refinery. However, the entire project, which involves a scrubber and not a recovery unit, will cost approximately $600 million.
MARKET NOTES
India: The government has brought two fertilizers – TSP and ammonium sulfate – under the concession (subsidy) scheme, fixing their maximum retail prices at Rs7,450 and Rs10,350 pmt, respectively. TSP, a cheaper substitute for DAP, is expected to provide an alternative supply of phosphate even as it helps save on the subsidy bill.
A new concession scheme has also been approved for DAP that would compensate domestic manufacturers on the basis of import parity price. The pricing of phosphorous (P) in DAP, which was hitherto determined on the basis of the price of input (phosphoric acid) as negotiated by the industry, will henceforth be arrived at through a “normated” price based on the delivered cost of imported/indigenous DAP.
The policy also introduces an “outlier” concept for computation of final rates of concession on phosphate and potassium fertilizers. In the event of an importer contracting at a price lower by five percent or $30 a mt vis-a-vis the industry average, such an “outlier” concern will be entitled to 65 percent of the difference between the higher industry average and the lower outlier price. The remaining 35 percent share would go to the government. The government said the change will encourage the industry to seek long-term supplies at lower prices. The overall reduction in subsidy outgo from the scheme would be Rs11.63bn. The policy also envisages maintaining buffer stocks of 350,000 mt DAP and 100,000 mt MOP.
The new scheme will come into effect retroactively from April 1, 2008, based on a revised framework.
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, director general, FAI.
The CCEA also sanctioned Rs4.29bn 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.
Bangladesh: BCIC has told the local media that it plans to spend US$147 million to modernize existing urea plants in order to produce some 500,000 mt more urea. BCIC said that it had to raise the price of urea more than 100 percent at the beginning of last month to meet the ever-growing expenditure due to marketing the agricultural input at subsidized rates. BCIC said the official rates of urea remained unchanged for the last 11 years despite the fact that the price of natural gas, electricity, tariff, salary and wages, and other expenditures had gone up sharply during the period, causing huge losses to the factories. BCIC said currently the combined production capacity of six urea factories – Chittagong Urea Fertilizer Factory Ltd. (CUFFL), Jamuna Urea Fertilizer Factory Ltd. (JUFFL), Zia Urea Fertilizer Factory Ltd. (ZFFL), Urea Fertilizer Factory Ltd. (UFFL), Natural Gas Fertilizer Factory Ltd. (NGFFL), and Polash Urea Fertilizer Factory Ltd. (PUFL) – has now virtually fallen bellow 1.4 million mt from their original capacity of over 2.2 million mt. In line with the modernization program, the annual production will increase by 500,000 mt mt of urea over next four years, of which 200,000 mt is being added in fiscal 2008-09.
Yara International ASA CEO Thorleif Enger is retiring. He will be replaced by Jørgen Ole Haslestad, 57, in September 2008. Mr. Enger steps down at his desired retirement age of 65 years.
Haslestad comes to Yara from Siemens, where he recently was named one of a new group of 15 CEOs to oversee the conglomerate’s operation. Haslestad is CEO of the Industry Solutions Division, with a turnover of approximately US$12 billion. During his 14 years at Siemens he held several senior executive positions across Asia, the Americas, and Europe. Prior to joining Siemens, he was CEO of Kongsberg Offshore. A board member of both Yara and Tandberg since 2004, he holds an M.S. degree in Mechanical Engineering.
“Having spent 14 years abroad, I am delighted to come home and run one of Norway’s most exciting and expansive international companies. I have followed the company close up as a member of the board for four years. Coming from a farming family and being a farmer still, I have deep respect for our natural heritage and a strong commitment to creating sustainable solutions,” says Haslestad.
“The search for a new CEO at Yara has been very thorough over the last year,” said Chairman of the Yara Board Øivind Lund. “Thorleif Enger has been clear on his intention to step down at age 65, and we have considered several internal and external candidates to replace Mr. Enger. We are extremely pleased with the choice of Jørgen Ole Haslestad. He has both the international experience, a successful track record running global multi-billion dollar businesses and a strong knowledge of Yara as a long-term board member. He brings both inside knowledge and outside experience when he joins the company on a full-time basis in September.”
Enger took on the role of leading the Hydro Agri division in 1999. He led a very successful turnaround process and was instrumental in preparing and executing the IPO in 2004. Previously, he held several executive positions at Norsk Hydro and in international business. Enger will continue in his role as President of IFA – The International Fertilizer Association.
“Thorleif Enger has built a very successful operation in Yara, increasing shareholder value tenfold since the IPO in 2004,” added Lund. “We thank him for his strong efforts, the remarkable journey that the company has had and the strong platform that he has built. We remain confident that Yara’s success will continue.”
Yara CFO and Head of Strategy Sven Ombudstvedt has decided to step down from his position and will leave Yara July 4, 2008. A new CFO will be appointed during week soon. He has served in the positions since October 2006. He was formerly senior vice president upstream from 2003 until 2006; prior to this, he held a number of leading positions in Norsk Hydro.
Catherine Randazzo recently joined The Sulphur Institute as president and CEO. She joins TSI after over 20 years of successful performance in senior management roles with The Society of the Plastics Industry Inc., most recently as chief operating officer and executive vice president.
Ken Boltz, vice president of Jupiter Sulphur LLC, was elected chairman of TSI’s board, succeeding outgoing chairman Kenneth Ellzey. Egbert Veldman, business vice president of Shell Sulphur Solutions, was elected vice chairman.
Recent new members to TSI include Agip KCO (Kazakhstan), Interacid Trading SA (Switzerland), OCP Group (Morocco), solvadis GmbH (Germany), Transammonia Inc. (USA), Marsulex Inc. (Canada), and Chemical Initiatives (South Africa). TSI has some 35 members around the world.
Rentech Inc. has announced organizational changes. Merrick Kerr, executive vice president and chief financial officer, will be resigning effective July 18 to pursue other opportunities. His responsibilities will be assumed on an interim basis by Douglas Miller, executive vice president and chief operating officer, until completion of a search for a new CFO.
“With Doug Miller’s appointment as Interim CFO and the continuing support of our chief accounting officer, Deb Harshman, we are confident that there will be no disruption to the company’s business or financial reporting and related functions,” said D. Hunt Ramsbottom, Rentech president and CEO. “Doug has had significant financial experience during his 27 years in the energy industry, including 15 years at Unocal.”
As part of the new organizational structure, John Diesch, senior vice president of operations, will have his duties expanded to include primary responsibility for overseeing the day-to-day management of the company’s operating assets, including Rentech Energy Midwest Corp. He previously served in various managerial roles at REMC’s ammonia fertilizer plant for ten years, most recently serving as the facility’s president. Diesch will continue to report to Miller.
The company’s technology research and development division and applications engineering division will report to Richard Penning, executive vice president of commercial affairs for Rentech. Penning has nearly 30 years of technology experience, gained at his previous employment at UOP LLC, a Honeywell company. Moving these divisions from the operations department of the company to combine with the commercial affairs function will enable Rentech to continue its focus on commercializing its technology and meeting the technology needs of its commercial synthetic fuels projects and potential customers, licensees, and partners. The organizational change will be effective upon first production at the Product Demonstration Unit, and the new group will be called Technology Commercialization.
Rentech says it has experienced expected challenges at the PDU while in the commissioning and start-up phase of the facility. The challenges are being resolved and the company believes they will not cause significant delay in the production of fuels from the PDU. Synthesis gas (syngas) has been successfully produced from the steam methane reformer at the plant; however, an issue was identified in the syngas clean-up portion of the PDU that is currently being repaired. Once resolved, syngas will be available for start-up of the Rentech reactor for the production of hydrocarbons. Meanwhile, commissioning, start-up, and testing of the remaining principal technologies at the PDU continues.
Mr. Ridha Ben Mosbah has been appointed chairman and general director of Compagnie des Phosphates de Gafsa (CPG) and Groupe Chimique Tunisien (GCT). He began his career in banking before joining CPG, where he acquired expertise within the Tunisian phosphate sector and participated in its restructuring and development. Prior to his nomination to the head of CPG/GCT, he was a member of the Tunisian government since 2004, successively as secretary of state, ministry of higher education, scientific research and technology. He graduated from Ecole des Mines de Paris.
BASF Turf & Ornamentals, Research Triangle Park, N.C., has appointed Ms. Thavy Un as marketing manager. Un will focus on developing marketing strategies for Turf & Ornamentals, as well as planning and program development. Her responsibilities will also include overseeing financial operations, forecasting, and production in collaboration with manufacturing, regulatory, formulation, and product labeling groups.
Prior to joining the Turf & Ornamentals team, Un held several positions within BASF’s agricultural division, including global marketing manager for fungicides and plant growth regulators and global marketing research analyst in Limburgerhof, Germany. Un also spent time working in marketing at Performance Chemicals in Mount Olive, N.J. and as a caprolactum project manager in Freeport, Texas. She is a Texas A&M University graduate with a bachelor’s degree in chemical engineering.
Mike Moosman, director of business development at Helm Fertilizer Corp., Tampa, has left the company. Helm said there are no current plans to fill the position.
Research Triangle Park, N.C.-Imidacloprid, the insecticide that is applied with fertilizer, has been carefully researched and is not the cause of colony collapse disorder (CCD), which is mysteriously eliminating bee populations across the country, according to producer Bayer Crop Science. At this point, Bayer points out, government and academic researchers agree the cause of CCD is not yet known. But the founding editor and publisher of People, Places and Plants magazine has a different idea. Recently journalist and landscaper Paul Tukey, who started the magazine in 1995, reported that he suspects imidacloprid, which is commonly found in lawn treatments aimed at eradicating grubs, aphids, whiteflies, and other pests and has become more widely used during the last three years ?Çô the same timeframe in which CCD appeared. Tukey’s theory is that imidacloprid, which is commonly called Merit, doesn’t kill bees directly, but it disorients them so they can’t find their way back to the hive and therefore die. Bayer responded, “Unlike various factors being investigated as potential causes of CCD, Bayer CropScience and independent researchers have conducted extensive laboratory and field trials on imidacloprid over the past 10 years and have confirmed it can be used without impacting honey bee populations. In fact, this product is one of the most widely researched insecticides in terms of bee safety assessment. Since its introduction in 1994, it has been used extensively and without incident of harm to bees such as that seen in CCD.” Bayer added that the direction of scientific investigation is turning increasingly toward a combination of parasitic mites and honey bee pathogens, noting that many researchers have investigated the exposure of bees to pesticides and found no correlation with CCD. “A robust agricultural system depends on both pollinators and crop protection products to help feed a growing population. Bayer CropScience understands the importance of thoroughly researching the causes of bee health problems and supports efforts to find causes and remedies. Claims that pesticides in general, or imidacloprid in particular, are the cause of CCD have no scientific basis and distract from finding the real reason for this serious bee malady,” said Bayer.
Greensboro, N.C.-DuPont Co. and Syngenta AG announced June 24 that they have agreed to a crop protection technology exchange, whereby the two companies will share the costs to prepare the regulatory studies for DuPont’s new broad spectrum insecticide Cyazypyr. The agreement will allow both companies to pursue commercialization opportunities based on the compound. The new pesticide is complementary to DuPont’s Rynaxypyr insect control product, which Syngenta is using in mixtures with its own insect control products. Financial terms of the agreement were not disclosed. The agreement also specifies that Syngenta will grant DuPont access to mesotrione, the active ingredient in Callisto, a post-emergence herbicide for corn and sugarcane crops. The two companies said the agreement will broaden each company’s crop protection portfolio and enable them to efficiently bring new products to market. In May, Syngenta also announced a royalty-sharing agreement with Monsanto. In that agreement, Monsanto agreed to receive a royalty-bearing license to Syngenta’s dicamba herbicide tolerance. Syngenta, in turn, will receive a royalty-bearing license to Monsanto’s Roundup Ready 2 Yield soybean technology and get more favorable marketing conditions for its Bt11 European corn borer control.
Boston-Converted Organics Inc. has lined up Brooklyn-based Filco Environmental Services, a waste management firm, to supply food waste materials for processing into organic fertilizer. “Filco is well-suited to provide food waste to our new flagship Woodbridge, N.J. facility, which will soon be operational,” said Jack Walsdorf, CO vice president. “Our technology requires source-separated food waste, and Filco Environmental Services has the client base in the metro New York market to meet this need.” CO plans to sell and distribute its fertilizer products in the retail, turf management, and agribusiness markets.
Boise-MDU Resources Group Inc., a Bismarck, N.D.-based energy, mining, and construction company, will acquire Intermountain Gas Co. – an Idaho-based pipeline utility that has provided natural gas to the J.R. Simplot Co. and Agrium phosphate fertilizer plants in Southeast Idaho – in a cash-for-stock transaction worth $328 million, including debt, pending regulatory approval by the fourth quarter. MDU announced the purchase July 1. Founded in 1955, Intermountain Gas supplies natural gas to about 300,000 Idaho customers in 74 communities and employs about 330 people. MDU is the parent company of Montana-Dakota Utilities, Great Plains Natural Gas Co., and Cascade Natural Gas Corp. MDU said after the deal with Intermountain Gas closes, it will have a customer base of 930,000 in eight states. MDU has operations in 45 states and Brazil, and about 14,500 employees. The company reported a record profit of $431 million in 2007 and an increase in its dividends for the 17th consecutive year. MDU’s electric and natural gas distribution group posted $31.7 million in earnings last year, up from $20.1 million in 2006.
Harrisburg, Pa.-The Pennsylvania attorney general is still awaiting a ruling from the Commonwealth Court challenging the right of East Brunswick Township (Schuylkill County) to prohibit the use of biosolids as fertilizer. The action, taken in October 2007, was prompted by complaints that the township adopted an ordinance in December 2006 contrary to the state’s right to farm act, the nutrient management act, and other farm-related state statutes, according to a spokesman for the AG’s office. “The request for the ordinance review came under Pennsylvania’s Agriculture, Communities and Rural Environment (ACRE) law, which directs the office of attorney general to review local agricultural ordinances based on complaints from farm owners and operators for this office to challenge ordinances that do not comply with state law,” reported Nils Frederiksen, the AG’s deputy press secretary. “This particular case involves local limits on agricultural activities which are more restrictive than state law which is something specifically prohibited by those state laws.” One of the complainants, Jeffrey Hill of J.C. Hill Tree Farm, told Green Markets that he hadn’t heard anything new about the attorney general’s suit. He said he was getting a little impatient about not being able to use biosolids, which has caused an impact on his tree farm. “It makes the trees grow faster,” he remarked, “We can harvest them two years sooner.” Frederiksen said the East Brunswick Township case is currently before Commonwealth Court, located in Harrisburg, which has indicated that it will make a decision on the case based on the briefs that have been filed. But the court has set no timetable for a ruling. Schuylkill County residents lobbied for the biosolids ban after two families each blamed the death of one of their children on the use of biosolids in farm fields and others complained of a range of illnesses. East Brunswick is about 65 miles northwest of Philadelphia.
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