Potash Corp. of Saskatchewan Inc. and Moroccan phosphate producer OCP S.A. announced on May 7 that they have reached a definitive agreement under which PotashCorp would purchase OCP’s full range of dry finished phosphate products to help PotashCorp meet its customers’ requirements for the U.S. and Canada.
The two parties have also signed a Memorandum of Understanding that would provide for the sale by PotashCorp to OCP of ammonia to meet OCP’s growing ammonia requirements for its new fertilizer capacity in the Jorf Lasfar Hub.
OCP, the largest global producer of phosphate rock and phosphoric acid, currently has 3 million mt/y of DAP/MAP capacity at Jorf Lasfar, but has announced two phases of expansion at the complex, the first of which is slated to be operational by July 2015 and would add another 4 million mt/y of DAP/MAP capacity. The second phase is planned for operation starting in 2020, and would bring annual DAP/MAP production capacity at Jorf Lasfar to more than 13 million mt.
PotashCorp, through a wholly owned U.S. subsidiary, currently purchases phosphate rock from OCP to supply its Geismar, La., production facility.