Vale and PetroPeru Harbours in Bayóvar

OCP Logistic Development

An ambitious and innovative project: a pipeline to connect the Khouribga mining site with the Jorf Lasfar recovery facilities In May 2010, a credit agreement of 240 million euros was signed with the French Development Agency (AFD) to cover an estimated 55 percent of the project’s investment cost, with the remaining funds provided by OCP. The main pipeline and its tributaries have a total length of 250 kilometers. The goal is to transport, by wet processing, all of the phosphate mined in Khouribga and sent to chemical plants or the port of Jorf Lasfar to be converted into phosphoric acid and DAP, or exported, respectively. At stake, water savings (eliminating the drying required for rail transport) and energy savings, which reduce transportation costs to one dollar per ton of phosphate from the current rate of seven to eight dollars. In terms of logistics, this upstream-downstream integration will allow the washing plant built at the mine to enrich the ore while preparing it for transport. The pulp of prepared phosphate will be stored in tanks at the exits of the washing plants and then pumped through secondary pipelines to a collection station located near MEA, which is referred to as the head station. From there, the phosphate pulp will be fed into the main pipeline that provides hydraulic transport from Khouribga to Jorf Lasfar. At this site, a terminal station comprised of storage tanks will be utilized for the reception and distribution of the phosphate pulp. The pipeline is scheduled to be operational in April 2013. Distribution: Port installations for reliable delivery to clients worldwide OCP ships treated phosphate through the ports of Casablanca, Laayoune, Safi and Jorf Lasfar. The last two are also used for exporting fertilizers (in bulk or in bags), phosphoric acid and purified phosphoric acid, as well as for importing raw materials (sulfur, ammonia, potash, caustic soda, sulfuric acid). These multiple points of embarkation provide flexibility and security of supply to our company’s clients. The ports of Casablanca, Jorf Lasfar and Safi are State-owned, but OCP has equipped certain areas for our specific operational needs. By contrast, the Laayoune Wharf has been owned by us since 1967. This structure, 3,200 meters long, was built with prefabricated elements and is shaped like a bridge over the sea. Perpendicular to the coast, it supports the entire industrial infrastructure used to operate on the Boucraa-Laayoune site. It consists of a dock terminal for loading ships with phosphate and an intermediate dock for unloading ships carrying heavy crude oil intended for the processing plant. The draft is 17 meters, which allows for the docking of ships carrying 70,000 tons (tons of dry finished product and merchandise) of cargo.

Mitsubishi And Zuari Acquires Rock Phosphate Stake in Peru

Mitsubishi Corporation (MC) and Indian fertilizer manufacturer, Zuari Industries Limited (Zuari) have acquired a stake in Fasfatos del Pacifico S.A. (FOSPAC) from a major Peruvian cement manufacturer, Cementos Pacasmayo S.A.A. (Pacasmayo). FOSPAC is a subsidiary company of Pacasmayo dedicated to explorations and the production of rock phosphate in Bayovar, Piura Province, Peru. MC and Zuari have established a joint venture based in Singapore, MCA Phosphates Pte Ltd. (MCA), for MCA to acquire a 30% stake in FOSPAC. This will enable MC to hold 21% stake in FOSPAC through MCA. At the same time, MC and FOSPAC　have entered into an off-take agreement for MC to purchase FOSPAC ’s entire production for the export of rock phosphate, after FOSPAC’s fulfillment of local demand, for a minimum term of 20 years. FOSPAC is expected to have an initial production capacity of 2.5 million metric tons per year and commercial production is expected to commence in 2015. MC’s total investments, including the acquisition cost of the FOSPAC stake from Pacasmayo, are estimated to be around US$120 million. In keeping with the growing global population and economic development, there is a ongoing increase in food production and meat consumption, respectively. There is also an increasing demand for bio-fuel and a decreasing availability of agricultural land. Due to these above factors, the demand for worldwide fertilizer is expected to grow at an annual rate of 3-5%. Meeting future demand for rock phosphate, the key raw material of fertilizer, is expected to be difficult due to continued oligopoly caused by the small number of producing countries, scarcity of resources, and the export limits imposed by China, the largest producing country in the world. Low inland cost and shallow mining depth, which contribute to reduced mining costs, combined with the scarcity and eccentricity of resources are expected to help highlight the increased presence of Peruvian rock phosphate as a new supply source in the industry. By acquiring this stake in promising fertilizer, through the FOSPAC project MC will contribute to not only the stable supply of services to growing world markets, such as India, but also the economic development of Peru. Company Profile ・Cementos Pacasmayo SAA Pacasmayo is involved in cement and concrete businesses mainly based in northern Peru. Pacasmayo is a group company of Hochschild group, Peru’s fifth largest group company, which owns 67.5% stake. Listed on the London Stock Exchange, Hochschid’s core company “Hochschild Mining” operates gold and silver mining businesses in Peru, Argentina, Mexico and Canada. ・Zuari Industries Limited Zuari is the core company of Adventz group, listed on the Indian stock market, and is the largest private fertilizer company in both local production and sales, having also engaged in the import of fertilizer. ・MCA Phosphates Pte. Ltd. MCA is a joint venture set up by MC and Zuari in Singapore. MC holds 70% interest in MCA while Zuari holds a 30% stake.

Fluorides and Fluossilicates

Hidróxi fluor apatites...the name says all. Fluorine is in the DNA of our phosphate rocks.

Purifying Chlorides: Potassium Sulfate

For plants like rice and banana that suffers from clhorosis, or to prevent soil salinity, has some interest a fertilizer of a K + S (potash plus sulfur). Potassium Sulfate done by a termal fire heated reaction done in a brick furnace betwen KCl (potassium chloride) and Sulfuric Acid (H2SO4). HCl is the co product. Brazil, following ANDA, imports plus than a hundred thousand tons per year. Around the world, production surpasses 4 million ton per year.

Phosphoric acid surplus unlikely to benefit India

May 27, 2012: Phosphoric acid, a key input for fertilisers, is expected to see surplus production globally by 2014. Global phosphoric acid production capacity is forecast to increase by 4.5 million tonnes to 55.5 million tonnes between 2011 and 2014, according to International Fertiliser Association (IFA) data. This will result in a moderate production surplus of 2.7-3.5 million tonnes per annum between 2012 and 2014. However, approximately 85 per cent of world phosphoric acid production is for captive consumption and only 15 per cent is traded in the international market. Hence, Indian producers may benefit only to a limited extent from this trend. Out of the total trade of approximately 5 million tonnes of phosphoric acid, India imports more than 2.5 million tonnes every year. However, phosphoric acid is not freely traded and more than 50 per cent of Indian transactions are by way of long-term supply arrangements between producers and importers. As such, if India wants to ensure phosphoric acid availability through imports, companies need to participate in more production joint ventures in countries rich in the resource and forge long-term supply arrangements. Expansion in China will account for one-third of the increase in production capacity of this vital fertilier input. Close to 34 new acid units are planned for completion during the 2010-2015 period, of which 15 would be located in China, six in Morocco and three in Saudi Arabia. On a global basis, the net addition to merchant grade acid capacity is estimated at 1 million tonnes of phosphoric acid, of which 0.86 million tonnes will come from two large standalone units in Tunisia and Jordan. Indigenous production of phosphoric acid remained stagnant during the 11th Plan period (2007-12), with 1.16 million tonnes of production in 2009-10, as against 1.33 million tonnes in the terminal year of the 10th Plan. The total installed capacity for indigenous production of merchant grade phosphoric acid is 1.76 million tonnes, suggesting that domestic capacity is not fully utilised, probably due to material availability.