Vale sells Fosbrasil stake to Israel Chemicals for $52 mln

Dec 26 (Reuters) - Vale SA , the world's No. 1 iron ore producer, sold a 44.25 percent stake in purified phosphoric acid producer Fosbrasil SA to Israel Chemicals Ltd for $52 million, according to a securities filing published on Thursday. The deal is subject to regulatory approval, according to the filing dated Dec. 20. Fosbrasil is based in the town of Cajati in Brazil's São Paulo industrial state, and produces phosphates. Phosphoric acid is used as a food additive, dispersing agent and as fertilizer feedstock. Efforts to contact Israel Chemicals Ltd were unsuccessful. The deal comes as Vale focuses on developing its mining assets in Brazil and sheds non-core assets like phosphates, logistics and energy.

Vale busca sócios para área de fertilizantes e ferrovia em Moçambique

Diário de Guarapuava FolhaPress Por Pedro Soares RIO DE JANEIRO, RJ, 17 de dezembro (Folhapress) - Disposta a focar ainda mais em seu produto mais rentável, o minério de ferro, a Vale negocia a venda de participações em seus negócios de fertilizantes e na área de logística de sua segunda principal aposta, a mina de carvão em Moçambique. O presidente da Vale, Murilo Ferreira, disse que a empresa está à procura de um sócio para criar uma nova holding que iria incorporar todos os empreendimentos e projetos da Vale na área de fertilizantes, recriando a antiga Vale Fertilizantes --empresa que nasceu da compra da Fosfértil. Indagado sobre o nome do sócio, Ferreira disse apenas: "Estamos namorando ainda". A Vale, desse modo, quer replicar o modelo que adotou com a VLI, empresa de logística que se cindiu da mineradora. Vale vendeu uma fatia da companhia, cujo foco é o transporte de grãos e outros produtos, para a canadense Brookfield, a japonesa Mitsui e o Fundo de Investimento do FGTS (Fundo de Garantia do Tempo de Serviço). Outra possibilidade, disse o executivo, é a entrada de um novo parceiro para cada um dos projetos da mineradora na área de fertilizantes. Os principais são as minas de potássio de Carnalita, projeto em Sergipe para a produção de 2 milhões de toneladas/ano, e a de Kronau, no Canadá -entre 3 milhões e 5 milhões de toneladas/ano. Ferreira disse que uma decisão deve ser tomada no primeiro semestre de 2014. O executivo afirmou ainda que a Vale teve uma perda de US$ 2,3 bilhões com a desistência do projeto de potássio em Rio Colorado, na Argentina, e refutou que a mineradora não tenha interesse na área de fertilizantes. O custo elevado dos equipamentos e o câmbio desfavorável, afirmou, foi determinante para a Vale encerrar o projeto. Essas condições permanecem e não há uma perspectiva de retomada. No caso da área de logística em Moçambique, a ideia é buscar um sócio para a ferrovia de 900 km em construção entre a mina de carvão de Moatize e o porto de Nacala, que também entrará no pacote e será negociado junto com a estrado de ferro. A Vale tem a concessão do governo local para os dois empreendimentos. O objetivo, disse Ferreira, é promover o desenvolvimento regional e permitir o transporte de grãos e outros produtos pela ferrovia e o porto. A abertura da infraestrutura a terceiros, mediante pagamento, foi negociada com o governo de Moçambique. A ideia da Vale é vender 50% de sua participação na ferrovia e no porto. A Vale detém 70% dos projetos, mas é responsável, sozinha, pelo investimento estimado em US$ 4,4 bilhões, que será repartido com o novo sócio.

Du http://www.arte.tv/guide/fr/048005-000/le-bresil-une-grande-puissance-en-devenir

Un documentaire sur le Brésil...
État le plus vaste et le plus peuplé d’Amérique latine, le Brésil confirme aujourd’hui son statut de grande puissance économique. Depuis plus d’une décennie, le pays a connu un développement spectaculaire, qui a fait de lui un géant commercial : premier producteur mondial de soja, de café ou de viande bovine, également riche en hydrocarbures, la sixième puissance économique mondiale semble en passe de devenir le grenier de la planète. Du constructeur aéronautique Embraer jusqu’au géant du pétrole Petrobras, ou à l’entreprise minière Vale, les multinationales y prospèrent. Et pour la plupart des 200 millions de Brésiliens, les années Lula et Rousseff se sont également avérées profitables : alors que les métropoles investissent dans l’assainissement des favelas et dans les services publics, 40 000 000 personnes ont pu sortir de l’extrême pauvreté ; la classe moyenne émergente est désormais majoritaire. Pourtant, en cette veille de coupe du monde de football, un vaste mouvement de revendication, jamais vu depuis vingt ans, s’est fait jour. Depuis mars dernier, les citoyens descendent dans la rue, fustigeant la corruption, le manque de démocratie, les dépenses inutiles du gouvernement de Dilma Rousseff, un système scolaire à deux vitesses et des transports publics hors de prix. Face à la menace d’inflation et l’endettement généralisé, cette nouvelle classe moyenne exigeante s’inquiète également pour son niveau de vie. Ce documentaire explore ainsi les rouages du formidable essor brésilien, mais aussi le revers de la médaille – notamment les coûts écologiques et humains de cette croissance à tout prix.

New Phosphoric Acid Plants at El Jadida

We can see, that after BMP (now 100% OCP) two new H3PO4 complexes have been added to El Jadidas OCP´s mega site!

PotashCorp Announces Operating and Workforce Changes

Saskatoon, Saskatchewan – Potash Corporation of Saskatchewan Inc. (PotashCorp) announced today that it is taking the difficult but necessary step to reduce its workforce in Canada, the United States and Trinidad by approximately 18 percent from current levels. We expect workforce reductions by region as follows:  Saskatchewan – approximately 440 people  New Brunswick – approximately 130 people  Florida – approximately 350 people  North Carolina – approximately 85 people  Other US locations and Trinidad – approximately 40 people

Vale: Capital and R&D expenditures budget of US$ 14.8 billion for 2014

Expenditures in sustaining the fertilizers business will be US$ 400 million, mainly comprised of investments in operations (US$ 222 million), including maintenance at Uberaba (US$ 101 million), CSR (US$ 81 million), waste dumps and tailings dams (US$ 51 million) and health & safety (US$ 29 million). The coal business budget of US$ 179 million is chiefly composed of US$ 156 million for operations.
See complete Press RElease at:
http://saladeimprensa.vale.com/_arquivos/120213Capex2014_i.pdf

Focus Acquires Phosphate Project in the Bayovar District, Peru

September 10, 2013; Vancouver, Canada: Focus Ventures Ltd. (TSX-V: FCV) is pleased to announce that its Peruvian subsidiary Agrifos Peru S.A.C. has signed a binding Letter of Intent (LOI) with Juan Paulo Quay S.A.C. for the exploration and acquisition of the Bayovar 12 phosphate mining concession, located 70 km south of the city of Piura in northern Peru, close to Vale's operating Bayovar phosphate Mine. Focus believes the Bayovar 12 property shows potential to host a large sedimentary phosphate deposit and is planning a systematic grid-based drill program which will commence as soon as exploration permits are received from the authorities. Logistics for the 12,575 hectare concession are excellent. It is connected by sealed road to tidewater and marine port facilities 40km to the west, owned by the property owner, Juan Paulo Quay, which used the facility for the export of gypsum mined from the Bayovar 12 concession and phosrock from the Bayovar deposit, prior to its acquisition by Vale. Juan Paulo Quay is a marine transport and service provider owned by subsidiaries of Grupo Romero (Peru) and Mamut Andino C.A. (Ecuador). The Pan-American Highway crosses the claim at its eastern end and power transmission lines for the Bayovar Mine, located 15km to the southwest, transect the property at its northern end. "Establishing a foothold in the world-class Bayovar District is another major milestone in our strategy of acquiring quality phosphate assets in South America," said David Cass, the President of Focus. "Bayovar is one of the world's premier phosphate producing regions and benefits from excellent logistics and infrastructure, with two world-class deposits found there to date including a producing mine. We regard Bayovar 12 as a key asset that we can advance quickly to resource stage, and with our other recently acquired projects, firmly establishes Focus as a major name in Latin American phosphates." Five historical exploration holes drilled within the former gypsum operations and spaced approximately 1.5 km apart all intersected multiple flat-lying phosphate beds from 36.5m depth which assayed between 10 - 22% P205. The phosphate intervals were broadly correlated from hole to hole into at least 6 main units within a sequence of diatomite some 30 -- 40m in thickness. The geology and mineralization are similar to the Bayovar Mine and adjacent Fosfatos del Pacifico deposit (Hochschild / Mitsubishi / Zuari). Under the terms of the LOI, Focus can earn a 70% interest in the claim by investing up to $15 million in exploration and making a series of cash payments up to the completion of a positive Pre-feasibility study, after which Focus will have the first right of refusal to purchase the remaining 30% from the property owners. More information is available on the Focus website: www.focusventuresltd.com

Turmoil in potash is an opportunity to Vale

Turmoil in the global potash market is creating an opportunity for Vale SA to buy assets at a discount as the mining company leads Brazil’s bid to become self-sufficient in crop nutrients.
Vale, whose output at Brazil’s only potash mine dropped for the past three years, should abandon plans for greenfield projects and consider instead purchasing existing producers or their assets, according to Stifel Nicolaus & Co. Potash companies are trading at a “great discount,” making acquisitions a cheaper option for Vale than starting from scratch, said Terence Ortslan, managing director of research firm TSO & Associates.
Vale suspended two potash projects in Argentina and Canada worth $8.9 billion in the past year as cost increases made the ventures unfeasible. Fertilizer producer shares have slumped 14% on average since July 30 when OAO Uralkali ended output restrictions through a venture with Belaruskali, triggering speculation prices would tumble. Their average price-to-book ratio fell to 1.69 yesterday from 2.55 at the end of last year.
“It’s tough to justify the economics of a new project at today’s pricing,” Stifel Nicolaus analyst Paul Massoud said by telephone from Washington. “Looking at more established producers, if they can get the balance sheet to work, is the right way to go.”

Fertilizer Losses
Vale isn’t changing its strategy of seeking low-cost potash projects and maintains the business among its five main areas of focus, Chief Executive Officer Murilo Ferreira said during a conference call Aug. 8. While taking a cautious approach, the company is actively looking at potash growth options, head of fertilizers and coal Roger Downey said on the same call. Roberto Moretzsohn, commercial director for fertilizers, echoed those comments in Sao Paulo yesterday.
Fertilizers generated a net loss for the Rio de Janeiro- based company in the three quarters through June 30, according to data compiled by Bloomberg. Vale produced 233,000 metric tons of potash from its Taquari-Vassouras mine in northeastern Brazil in the first half of the year, 5.3% less than the previous year. It’s targeting 550,000 tons this year, similar to last year and 23% below a 2009 record.
Shares of Vale dropped 21% this year, underperforming rivals BHP Billiton Ltd., the world’s biggest miner, Rio Tinto Group and Anglo American Plc. An even steeper slide by potash producers makes an acquisition a more attractive option than spending years on new projects, TSO’s Ortslan said.

Import Dependent

“I would go with buying an existing producer,” he said by telephone. “I am sure it would be a serious consultation in any major company because you have seen a major drop in the market cap of the companies.”
Vale’s press department in Rio declined to comment further on potash expansion plans.
Brazil, the world’s largest producer of coffee and sugar, has said that boosting potash output is a priority to help reduce its dependence on imported nutrients. Amid record crops, Brazil boosted imports of potassium chloride to $1.65 billion in the first half, 20% more than a year earlier, according to the Development, Industry and Trade Ministry.
Brazil spent $8.58 billion in fertilizer purchases last year, its sixth-most imported item. Latin America’s largest economy imports more than 90% of its potash needs and 75% of its nitrogen-based fertilizers supplies, according to industry association ANDA.

Brazil Discount

“No potash project in Brazil is competitive now, and things tend to get even more difficult after Uralkali’s decision,” Mario Barbosa, who headed Vale’s fertilizers businesses until 2011, told reporters in Sao Paulo yesterday. “Potash prices have slumped and will continue dropping.”
Soc. Quimica & Minera de Chile SA, Latin America’s biggest fertilizer producer, is in talks to sell potash in Brazil for as much as a 10% discount on July prices, said two people with direct knowledge of the process. Plant Bem Fertilizantes SA, based in the southern farming state of Parana, may pay SQM $375 to $380 a ton for a 15,000-ton shipment, from $400 to $415 last month, said one of the people, who asked not to be identified because the talks are private. Vale should focus on delivering the heavy investments needed to expand its iron-ore business rather than making additional acquisitions, Oliver Leyland, who helps manage Brazilian stocks including Vale shares at Mirae Asset Global Investments, said by phone from Sao Paulo. “Nobody incorporates any expectation of increasing valuation in potash in the fair value of Vale shares,” he said.
‘Reassess Strategy’

Moretzsohn told an event in Sao Paulo yesterday that Vale will press on with its potash projects as it assesses the impact of Uralkali’s decision. The company should rethink that strategy as average annual prices are headed for another 11% drop next year, Stifel Nicolaus’ Massoud said.
“If they are serious about their claim of wanting to become a big, major fertilizers producer, they are going to have to do something about potash,” he said. “I just don’t think that building is the way to do it.”
www.bloomberg.com

Brazil's Vale says signs accord to quit Argentine Potash project

April 26, 2013|Sabrina Lorenzi | Reuters

RIO DE JANEIRO (Reuters) - Global miner Vale SA signed an agreement with the Argentine government on Friday that will allow the Brazilian company to leave the $6 billion Rio Colorado potash mining project, a company spokeswoman told Reuters on Friday. The agreement could put an end to months of uncertainty for Vale , which suspended work on the fertilizer project in December and announced its intention to pull out in March.
Under the terms of the agreement, Vale's existing concession at the mine remains in place for up to four years, the spokeswoman said. In the meantime, Vale is free to seek a buyer or partner for the venture.
Between December and March, Vale sought and failed to get the Argentine government to approve tax breaks to help ease rising costs related to surging Argentine inflation and the country's tightly controlled official exchange rate.
Vale said the inflation and exchange rate could make the project unviable.
People familiar with Vale's plans have said the company, the world's second-biggest miner, planned to sell the project in efforts to recoup the $2.2 billion it has already spent on the mine and on railway and port improvements needed to move the potash to market.
In a conference call with analysts and investors on Thursday, Vale said it is seeking new potash projects in Brazil and abroad to replace the Rio Colorado project.
Since approving plans to pull out and seek a buyer for the project, Vale and the Argentine government have been at loggerheads over the fate of at least 6,500 jobs at the Rio Colorado site.
Despite the suspension, an Argentine court ordered Vale to maintain work sites and continue paying its workers.
Brazilian president Dilma Rousseff said on Thursday, after meeting with Argentine President Cristina Fernandez in Buenos Aires, that she was confident Vale and Argentina would come to an agreement.
The Rio Colorado project includes an 800-km (500-mile) rail line from the mine in Mendoza province to Bahia Blanca, an Atlantic Ocean port.
Potash, a potassium salt, is a key fertilizer and is considered a strategic product for Brazil. While it is the world's largest producer of coffee, orange juice, sugar and beef and the No. 2 exporter of soybeans, Brazil must import the vast bulk of its fertilizers, including about 90 percent of its potash.
Potassium is one of three key plant nutrients along with nitrogen and phosphorous.
(Reporting by Sabrina Lorenzi.; Writing by Jeb Blount; Editing by Gary Hill and Lisa Shumaker)

A Copebrás é parte do Anglo American

Fosfato e Nióbio
Integram a Anglo American Nióbio Brasil (Ouvidor e Catalão/GO), que produz nióbio desde 1976, e a Anglo American Fosfatos Brasil (Ouvidor e Catalão/GO, Cubatão/SP), fundada em 1955, que fabrica produtos fosfatados, especialmente fertilizantes e insumos para alimentação animal.
No Brasil ainda integram o Anglo American os Negócios de Minério de Ferro e Níquel. Fosfatos tem o Ruben Fernandes (ex Vale e Votorantin) como o atual CEO.

Algérie - 6,5 millions de tonnes de phosphates en 2016 et complexe a Tébessa

La production annuelle de phosphate brut atteindra, dans la wilaya de Tébessa (est algérien), 6,5 millions de tonnes en 2016, soit "plus du triple de la production actuelle", a affirmé le directeur général de la Société des mines et phosphate (Somiphos). Une importante partie de cette production, soit 4,5 millions de tonnes, sera transformée en acide phosphorique (un acide minéral obtenu par traitement du minerai de phosphate) dans une usine en cours de lancement dans la région d’Oued El-Kebrit (Souk-Ahras). Le reste est destiné à l'exportation et à la satisfaction des besoins locaux, a ajouté le directeur général, Noureddine Zaïdi, dont l’entreprise relève du groupe public Ferphos.

Mosaic Seeks Bidders for Operations in Argentina and Chile

Mosaic Co. (MOS), the world’s largest phosphate-fertilizer producer, is selling its Argentina and Chile operations, a company spokesman said. “After significant evaluation and review, Mosaic has decided to pursue a sale of our operations,” Rob Litt, a Mosaic spokesman, said in an e-mailed statement today in response to Bloomberg questions. “We will immediately begin preparations for a sale process and will work quickly to complete a transaction.” Litt declined to comment on reasons for the sale in a telephone interview from Plymouth, Minnesota. He also declined to confirm that the unit on the sales block produces 550,000 tons a year of fertilizer, employs 130 workers and has annual sales of $300 million, as reported earlier today by the Buenos Aires-based newspaper La Nacion. “It is clear Mosaic’s strategic plans are in a different part of the world,” Pablo Bussetti, president of the producers association called Fertilizar, said in a telephone interview from Bahia Blanca, Argentina. “They are the largest producers of phosphate in Argentina, with more than half of the market share, and I am sure they will receive many offers.” Mosaic produces phosphate north of Buenos Aires in a factory near Rosario, Argentina, and handles distribution from Chile. Mosaic agreed Oct. 28 to acquire a mine and other assets from CF Industries Inc. for $1.2 billion to boost its output of the crop nutrient in Florida.

CF Industries to Sell Phosphate Business to Mosaic for $1.4 Billion

Companies Enter Into Ammonia Supply Agreements for Donaldsonville and Trinidad Production
DEERFIELD, Ill.--(BUSINESS WIRE)--Oct. 28, 2013-- CF Industries Holdings, Inc. (NYSE:CF) (“CF Industries” or “the Company”) today announced that it has entered into a set of strategic agreements with the Mosaic Company (NYSE:MOS). The agreements include: a definitive agreement to sell the entirety of CF Industries’ phosphate mining and manufacturing business to Mosaic for cash consideration of $1.4 billion, subject to adjustment; a long-term agreement under which the Company will supply Mosaic with between 600,000 and 800,000 tons of ammonia per year from its Donaldsonville, Louisiana nitrogen complex beginning no later than 2017; and an agreement to provide ammonia to Mosaic from the Company’s Point Lisas Nitrogen Ltd. (PLNL) joint venture beginning at the close of the phosphate sale.
“This is a set of agreements with significant strategic value to both CF Industries and Mosaic,” said Stephen R. Wilson, chairman and chief executive officer, CF Industries Holdings, Inc. “The sale of our phosphate operations represents good value for our shareholders and the full set of transactions enables us to sharpen the strategic focus on our nitrogen business.”
Phosphate Business Sale
The phosphate sale includes: the Hardee County Phosphate Rock Mine; the Plant City Phosphate Complex; an ammonia terminal, phosphate warehouse and dock at the Port of Tampa; and the site of the former Bartow Phosphate Complex. In addition, Mosaic is assuming liabilities related to the phosphate business, including responsibility for closure, long-term maintenance and monitoring of the phosphogypsum stacks at the Plant City and Bartow complexes. CF Industries is also transferring to Mosaic the value of its asset retirement obligation trust and escrow funds totaling approximately $200 million.
Donaldsonville Ammonia Agreement
Under the long-term ammonia supply agreement, beginning no later than 2017 CF Industries will supply between 600,000 and 800,000 tons of ammonia per year for up to 15 years from its Donaldsonville nitrogen complex for Mosaic’s use in phosphate production. The ammonia price will be based on the cost of natural gas delivered to Donaldsonville. “This agreement strengthens our confidence in the return we expect to generate from our Donaldsonville capacity expansion by providing a steady base demand for ammonia at a price that insulates us from movements in natural gas costs,” stated Wilson.
Trinidad Ammonia Agreement
Following the close of the sale of the phosphate segment, CF Industries will supply its share of the ammonia produced by the Company’s 50% owned PLNL ammonia production facility in the Republic of Trinidad and Tobago to Mosaic for use in phosphate production. Pricing under this supply agreement will be similar to that in the existing agreement under which the Company purchases ammonia from PLNL.
Other Information
The phosphate sale transaction is subject to customary closing conditions and regulatory clearances, including the expiration or termination of the waiting period under the Hart-Scott-Rodino Act and approval from the applicable governmental agencies under CF's consent decree with respect to certain environmental matters related to the phosphate business. The sale is expected to close sometime in 2014. Both companies’ boards of directors have approved the transaction. The Donaldsonville ammonia agreement is not conditional on the phosphate sale transaction and will go into effect beginning no later than 2017. The Trinidad ammonia agreement is conditional on and goes into effect at the closing of the phosphate sale transaction.

Coromandel, GSFC's JV in Tunisia starts production

Tunisia's Groupe Chimique Tunisien (GCT) and Compagnie Des Phosphat De Gafsa (CPG), the entities belonging to Tunisian government own majority state in the company.
The first shipment is expected to reach Coromandel's facility in Kakinada, Andhra Pradesh by this month-end, it said.
Coromandel International has made a strategic investment in TIFERT aimed at securing uninterrupted supply of phosphoric acid for the company's operations. The Company and GSFC have entered into an agreement with TIFERT to import the entire production of phosphoric acid at the Skhira plant on a long- term basis. CIL and GSFC hold 15 per cent state each in this USD 498 million project with balance 70 per cent being held by GCT and CPG. The Plant which was scheduled to be commissioned in 2011 was delayed due to some internal developments in Tunisia. However, the project is now operational and running near to its full capacity, it said. Kapil Mehan, Managing Director of Coromandel said India would get much needed Phosphatic fertilisers to further improve its food security and the project will go a long way to ensure smooth functioning of the company's recently commissioned fertiliser Plant (C Train) in Kakinada. CIL shares were quoting at Rs 179.95 on the BSE during afternoon trade.

Anglo American earmarks US$1.33bn for Goiás state's niobium, phosphate operations

By Frederico Barbosa - Friday, July 5, 2013 Multinational resource group Anglo American (LSE: AAL) will invest US$1.33bn in the production of niobium and phosphate at the industrial units it holds in Brazil's Goias and Sao Paulo states...(see at http://www.bnamericas.com/news/mining/anglo-american-earmarks-us133bn-for-goias-states-niobium-phosphate-operations)

Western phosphate producers look to the East for growth

DAILY NEWS Sep 12, 2013 8:44 AM - 1 comment TEXT SIZE By: Trish Saywell 2013-09-12 -------------------------------------------------------------------------------- AGADIR, MOROCCO — Mosaic (NYSE: MOS) may be the largest producer of finished phosphate products in the world with four phosphate rock mines and three processing plants in Florida and a second plant in Louisiana, but permitting new mines or extensions to existing ones in the southern U.S. state can be a nightmare with wait times that can typically stretch to a decade. At the same time, the Plymouth, Minnesota-based producer is trying to preserve its commanding lead as the largest phosphate fertilizer exporter to India against inroads being made by Chinese and Saudi Arabian producers, and is importing phosphate rock from Peru and Morocco—a country with the largest phosphate rock reserves on the planet. Phosphate rock is the primary source for phosphorus, one of three elements along with nitrogen and potassium that is critical to plant growth and used in phosphate fertilizer. In July Mosaic signed an agreement with Saudi Arabian Mining Company (Ma’aden) and Saudi Basic Industries Corp. (Sabic) to bring into production a US$7 billion green-field phosphate project called Wa’ad Al Shamal on the northeastern coast of the Middle Eastern kingdom along its border with Jordan. Wa’ad Al Shamal is expected to start production in late 2016 with a capacity of 3.5 million tonnes of finished phosphate per year. Mosaic will invest about US$1 billion over four years starting in 2013 and contribute expertise to the design, construction and operation of the new facilities. In exchange it gets a 25% ownership stake in the project and the right to market a similar quantity of the phosphate fertilizer and animal feed the venture produces. “Mosaic knows that they are likely to eventually lose share in India to Chinese and new Saudi Arabian production and this ultimately was a key factor in Mosaic now joining with Ma’aden’s second plant to invest its way back into more Indian market share,” Joel Jackson of BMO Capital Markets says in an interview. “It’s a very clever move,” Alberto Persona, a specialist on phosphates and potash at CRU, a privately held market analysis and consultancy firm in London, explains, emphasizing the role permitting delays in Florida have had on Mosaic. “The process to obtain new permits in Florida is very lengthy and painful. It took nine years of permitting for Mosaic to clear the South Forte Meade mine in Hardee County. You need approvals from roughly twelve different bodies to get permits—that’s why it takes so long.” “They’re trying to get new mines permitted but there are a lot of legal issues in Florida trying to get that done,” Stephen Jasinski of the U.S. Geological Survey confirms. “That’s one of the reasons why Mosaic is entering into these joint ventures.” The deal with the Saudis is about far more than just circumventing permitting hold-ups in Florida, where Mosaic estimates current and future reserves will allow it to mine phosphate rock for the next 30-35 years. It’s about tapping into growing phosphate markets more quickly and cost efficiently in countries like India, where Mosaic already has a vast network of terminals, inland distribution points and infrastructure. And shipping phosphate fertilizer from Saudi Arabia will be a whole lot cheaper than sending it all the way from Florida, CRU’s Persona says. Moreover, Ma’aden is the lowest cost producer of diammonium phosphate, or DAP, the product preferred by Indian farmers. “With Mosaic’s investments on the distribution side in India and with a strong aggressive partner like Ma’aden, which wants to be one of the world’s major phosphate producers—like BHP Billiton (NYSE: BHP) hopes to be some day in potash—the deal will be beneficial for Mosaic. It’s hard to know for sure but it could lower Mosaic’s cost of sales by as much as US$50 per tonne.” Monica Baker, research manager of fertilizer consultancy Integer-Research, comments that the export-oriented project in Saudi Arabia will be a major player in the future. “In the last decade, most of the phosphate expansion activity took place in China,” says the London-based analyst, “but we can see now how other regions of the world, including Saudi Arabia and Jordan in the Middle East, Morocco and Tunisia in North Africa, as well as Brazil, are taking centre stage, while Chinese expansions are set to slow in the next few years.” Describing it as a significant development for the industry, Baker points out that the deal brings together all the advantages that are key in determining the profitability of phosphate producers, including access to competitively priced raw materials (phosphate rock, ammonia and sulphur), and proximity to the customer base, which makes a big difference to the prices companies processing phosphate fertilizer can get for their product. Robb Litt, a spokesman for Mosaic, says the decision to pursue the joint venture with Ma’aden and Sabic is part of the company’s growth strategy and “has nothing to do with permitting in Florida,” which he concedes takes on average between five and ten years. “Currently our Florida mine sites are capable of meeting the needs of our fertilizer plants but the ability to be flexible with our rock sourcing in the future may be an opportunity,” he says, adding that the company’s Hookers Prairie mine will be mined out in 2014; its Four Corners mine in 2020, and its South Fort Meade mine in 2021. Mosaic doesn’t expect to start mining phosphate rock at its Ona project until 2020 and at its DeSoto project until 2021. “The Ma’aden Sabic joint venture will align us with the lowest cost production of phosphate crop nutrients and will position Mosaic in close proximity to emerging markets in India and Southeast Asia,” Litt explained in an email response to questions after declining an interview. “The joint venture will enhance our competitive position in the global marketplace by diversifying our sources of phosphate rock while improving our access to key geographies . . . when completed the new operation will be one of the lowest cost phosphate producers in the world.” The Saudi partnership also builds on Mosaic’s other efforts to nail down supplies of phosphate rock — the feedstock for phosphate fertilizer and phosphoric acid. There are no substitutes for phosphorus in agriculture and about 85% of the phosphate produced is used in the production of fertilizers and the other 15% as an input for animal feed, detergents, metal processing, preservatives, pharmaceuticals, and food supplements. Under a joint venture agreement with Vale (NYSE: VALE) and Mitsui & Co. of Japan, Mosaic has rights to 35% of the phosphate rock concentrate produced from the Miski Mayo mine in the Bayovar region of Peru. Next year Miski Mayo will produce 3.8 million tonnes of rock. Mosaic’s share — 1.3 million tonnes — will be consumed at its Louisiana processing plant in the U.S. and by Mosaic’s other consumers of the rock at its operations in Brazil and Argentina. Mosaic, like other phosphate fertilizer producers, has turned to Morocco — a desert kingdom in North Africa with an estimated 89 billion cubic metres of phosphate rock, the largest reserves in the world. Mosaic imports phosphate rock from state-owned producer Office Cherifien des Phosphates, commonly called OCP. Potash Corp. of Saskatchewan (TSX: POT; NYSE: POT) also has a deal in place with OCP—importing about 6% of the phosphate rock it processes companywide from the Moroccan company, while Agrium (TSX: AGU; NYSE: AGU) will start importing rock from OCP at the beginning of October when its mine in Kapuskasing, Ont., reaches the end of its life. “North America’s rock capacity is set to decline sharply in the early 2020s and some phosphate fertilizer producers have already tied up contracts with OCP or are importing from other origins or are looking for alternative suppliers,” Baker of Integer says. “Morocco is the largest rock seller in the world and is likely to continue to keep its position at this stage.” In a January 2012 report on phosphate rock from the U.S. Geological Survey, world phosphate rock production is projected to increase by nearly 20%, from 215 million tons in 2011 to 256 million tons in 2015, with most of the increase occurring in Africa and the largest increase expected from Morocco. In its literature, OCP says Morocco’s currently known reserves are “sufficient to meet several centuries of demand” and claims it supplies about 37% of the world’s phosphate rock; half of its phosphoric acid, and 15% of its fertilizers (it counts itself among the five largest phosphate fertilizer companies in the world) from four mining centres and nine chemical manufacturing facilities. Last year the company generated revenues of 59.3 billion dirham (US$7.12 billion). About half of its phosphate rock is exported as raw material to about forty countries around the world. The other half is sent to its chemical production facilities to be transformed into basic phosphoric acid, purified phosphoric acid and phosphate fertilizers. "Morocco has much more high-quality rock remaining compared with the United States and companies like Mosaic and others are trying to prolong their resources," Jasinski of the U.S. Geological Survey says. Richard Downey, vice president of investor and corporate relations at Agrium says its phosphate facility in Redwater, Alta., used to import phosphate rock from Togo in West Africa until the company opened its Kapuskasing mine in northern Ontario in 1998. Agrium also has a phosphate rock mine in Idaho near its phosphate production facilities and has a phosphate production plant and a phosphate rock mine in Idaho that it acquired in late 1997. It also has access to additional reserves of phosphate rock on lands leased primarily from federal and state governments in the U.S. under long-term arrangements. But Agrium started looking for alternative sources of supply several years ago ahead of the scheduled closure of its mine in Kapuskasing. In September 2011, Agrium executed a long-term rock agreement to 2020 with OCP and will start receiving Moroccan rock in October. Under its deal with OCP Agrium will pay more for the rock when international prices for phosphate fertilizer are high and less when prices fall, which reduces risk. “We looked all over the world at a variety of sources and obviously Morocco has got some of the largest reserves and the best grade out there,” says Downey. “There are some reserves in the Western U.S. that we continue to evaluate and we’re doing some exploration in Utah but permitting is an issue and that’s why we did the deal with OCP.” OCP’s monopoly on phosphate rock means that it can control the prices it charges and squeeze the margins of integrated fertilizer producers and distributors. In a corporate presentation by Stonegate Agricom (TSX: ST) citing 2012 estimates from the U.S. Geological Survey, seven countries in the Middle East and North Africa account for 83% of the world’s phosphate rock reserves; 24% of phosphate rock concentrate production; and 77% of the world merchant market. Of the merchant market, Morocco’s share is 35%. OCP claims the quality of its phosphate rock — measured by the percentage of phosphorous pentoxide (P205) it contains — is among the best in the world. Grades for phosphate deposits can run anywhere from 4% P205 to 35% P205, but a marketable concentrate typically needs to be at least 28% P205. “Morocco probably has the highest grade of P205 of the world’s sedimentary deposits, which are the bulk of world production,” Jasinski of the U.S. Geological Survey confirms. But the highest grade rock he says actually comes from igneous deposits found in Russia, South Africa and Finland. Morocco’s sedimentary deposits were formed 70 million years ago in layers of maritime bedrock. On a site visit earlier this year to Khouribga, one of OCP’s mining centres and its largest phosphate production zone with reserves of about 25 billion cubic metres, about a 120 km drive southeast of Casablanca, visitors watched a dragline operator scraping rock from a beach-white sedimentary deposit in a vast open pit under a blinding sun and temperatures approaching 40 degrees. OCP plans to double its overall phosphate rock production to 50 million tonnes a year by 2020 and boost its processing capacity for DAP (the most commonly used fertilizer), and of mono-ammonium phosphate (MAP), (a fertilizer consisting of two fertilizing agents, phosphorus and nitrogen). Its plant at Jorf Lasfar currently has a capacity of 3 million tonnes a year combined of DAP and MAP fertilizer and says it will add another 4 million tonnes a year of capacity by July 2015. Management claims that figure will rise to 13 million tonnes by 2020. OCP is the biggest rock producer in the world and the third-biggest fertilizer producer and it accounts for the biggest share of investments globally, both upstream in terms of mining capacity and downstream in terms of phosphoric acid and fertilizer, Persona says. “It’s a huge company and wants to get stronger and stronger,” Persona says. “The ease of obtaining permitting and access to relatively cheap capital is indeed an advantage when planning a wave of world-scale expansions; other competitors can hardly enjoy a similar environment. Moreover, the shallow geological structure of Moroccan deposits makes it relatively faster and inexpensive to expand mining capacity.” The company has earmarked US$12.2 billion dollars to expand its phosphate rock mines, chemical processing facilities, and infrastructure, and is building a 300-km underground slurry pipeline connecting the Khourigba phosphate rock mine to the company’s chemical processing hub at the port of Jorf-Lasfar. The slurry pipeline is a key element in OCP’s strategy to become the industry’s lowest cost producer and is expected to be completed before the end of 2013. The slurry will travel at a rate of 5,000 cubic metres per hour and take seven hours to reach Jorf-Lasfar. OCP says transporting the rock via pipeline will significantly reduce the company’s mine-to-port costs, cut energy and water use, greenhouse gas emissions and potential environmental degradation. Abdel Kader Alouani, OCP’s site director who led a group of visitors around the mine site in May, declined to address questions from The Northern Miner on exactly how much money the slurry pipeline would save the company on transportation costs, and declined to be interviewed for this article. But on its website OCP says the pipeline will cut transportation costs to less than US$1 per tonne from US$7-US$8 per tonne. OCP has generated some controversy in recent years, however, not only because some of its phosphate production comes from the Western Sahara — a disputed area bordered by Morocco in the north, Algeria to the northeast and Mauritania to the east and south that Morocco claims is its own — but because the company discharges untreated waste from its phosphate production directly into the sea. “They pump it into the ocean where it gets dispersed,” Jasinski says, “but they say they plan to stack it in the future.” The waste product — phosphogypsum — is commonly referred to as gypsum or calcium sulfate. It is a byproduct of the fertilizer manufacturing process that is created when sulfuric acid is reacted with phosphate rock to produce the phosphoric acid needed for fertilizer production. Traditionally, phosphogypsum is pumped into stacks adjacent to manufacturing facilities and stored there for perpetuity. In China, phosphogypsum has found a use in the construction industry (building materials, cement, wallboard; bricks; road work and the like), but because the material often contains traces of radioactivity its use is restricted in most countries. Mosaic says it invests R&D money internally and works with the Florida Industrial and Phosphate Research Institute seeking ways to improve gypsum stack management. In the meantime, the company says “properly designed gypsum stacks are the most environmentally responsible way to manage and store gypsum in compliance with existing regulations.” At an international conference on phosphates sponsored by OCP following the site visit to its operations, executives from the state-owned company and Dupont announced they had set up a 50-50 joint venture that will provide consulting and training services “to improve the safety, operational and environmental performance of companies in Morocco and other African countries.” Simon Herriott, Dupont’s managing director of consulting solutions, confirmed that the joint venture will become operational in the fourth quarter of 2013 and would assist companies throughout Morocco and northwestern Africa, including OCP, improve performance, safety, productivity and sustainability, but declined to comment on specific issues or challenges, including whether or not it would address OCP’s practice of dumping phosphogypsum into the ocean. Speakers at the Symphos conference in Agadir also noted that phosphate is an energy mineral because it contains uranium, thorium and rare earth elements (REEs) and research is being conducted on extracting these elements both from phosphoric acid and from phosphate rock. As far as phosphate rock prices are concerned, up until April 2007 they were fairly steady, running at about US$45 per tonne FOB Morocco, Persona of CRU says. But spikes in fertilizer commodity markets pushed the price of the rock up to US$430 per tonne in September 2008. By July 2009 prices had fallen back to the US$90 per tonne level. They started to creep back up again in 2010 and over the last two years have stayed within a price band of US$160-US$200 a tonne, even though they have showed a constant decline to the current level of US$145 a tonne since 2012.” Mosaic expects annual growth in the consumption of phosphate crop nutrients will remain at about 2% a year, which it argues should ensure stable to increasing prices. Meanwhile, with traditionally high margins on sales of phosphate rock, a number of juniors have been attracted to the industry in recent years—particularly in countries like Brazil—and have unveiled a number of new projects. “Junior miners were attracted to the phosphate rock space by the strong profitability in the industry in 2010 and 2011, especially, and by a strong, demand-driven market,” Baker of Integer Research in London says. “The high value of rock has been attractive to these companies. In 2012 profitability dipped for a number of reasons, such as lower demand from the key Indian market [after subsidies were withdrawn], higher input costs and lower revenue due to lower phosphate prices.” Baker argues that what will dictate which projects go ahead include whether cost structures are favorable, the quality of rock and the proximity to customers. “Most of the junior mining projects are positioned at the higher end of the cost curve and therefore will need to achieve a decent rock price to make the project attractive to investors,” she explains. But Jackson of BMO Capital Markets believes that the vast majority won’t go into production. “Only a couple will get done,” he says, “maybe when the next investment up-cycle comes around.” Paul Burnside, manager of fertilizer analysis products at CRU notes that OCP has leverage because of its massive supplies of phosphate rock. “The thing with [phosphate] rock is that the reserves in Morocco are just vast—absolutely vast—so in principal it could bring on as much capacity as it wanted and I think that may be one reason that there hasn’t been as much activity in phosphate development as in potash in terms of the juniors. OCP has millions and millions of tonnes of capacity; a lot of the junior projects are generally looking at much smaller tonnes.” At the same time, however, while OCP often acts as the swing producer, Integer-Research’s Baker argues that OCP has proved in recent years to be responsive to international market conditions and its production and exports are likely to be sensitive to market developments. “Much of the new investment can be phased in at intervals,” she says, “and is likely to be influenced by market developments. The company has also taken capacity out of the market at times in response to weaker market conditions.” --------------------------------------------------------------------------------

Top 15 countries producers of Phosphate Rock

2011 figures, thousands of tons of P2O5/year
Source IFA

China, 21900
Morocco, 8841
USA, 7898
Russia, 3977
Jordan, 2439
Brazil, 2140
Egypt, 1350
Syria, 1040
Israel, 958
South Africa, 918
Peru, 774
Tunisia, 728
Australia,608
India, 502
Senegal, 493

Top 15 countries producers of Phosphoric Acid

In thousands of tons/year of P2O5
2011 figures, Source IFA

China, 16800
USA, 8424
Morocco, 4404
Russia, 2509
India, 1519
Brazil, 1039
Tunisia, 700
Mexico, 620
South Africa, 613
Israel, 514
Jordan, 484
Australia, 450
Lituania, 444
Senegal, 392
Poland, 320

Maaden, Mosaic and Sabic on track to construct 3.5 million tonne phosphate operation

PLYMOUTH, Minn., August 5, 2013 – The Mosaic Company (NYSE: MOS) today announced that it has entered into a Shareholders’ Agreement with Saudi Arabian Mining Company (Ma’aden) and Saudi Basic Industries Corporation (SABIC) to participate in integrated phosphate production facilities in the Kingdom of Saudi Arabia. The companies have been working toward the agreement since a Heads of Agreement was signed in March. Ma’aden, Mosaic and SABIC will own 60, 25 and 15 percent of the joint venture, respectively. The estimated $7 billion greenfield project, to be known as Wa’ad Al Shamal, or Northern Promise, Phosphate Project, will be built in the northern region of Saudi Arabia at Wa’ad Al-Shammal Minerals Industrial City, and in Ras Al Khair Minerals Industrial City which is located on the east coast of Saudi Arabia. The highly cost-efficient project is expected to have a production capacity of 3.5 million tonnes of finished phosphate per year. Operations are expected to commence in late 2016. Under the terms of the agreement, Mosaic will contribute expertise to the design, construction and operations of the new facilities and acquire a 25 percent ownership stake. In connection with its equity share, Mosaic will market approximately 25 percent of the joint venture’s product, including phosphate fertilizer and animal feed. Subject to final financing terms, Mosaic’s cash investment is expected to be up to $1 billion, funded over a four-year period beginning in 2013. “We are pleased with the progress on our joint venture with Ma’aden and SABIC,” said Mosaic President and Chief Executive Officer Jim Prokopanko. “This cost-effective project will allow Mosaic to extend our ability to serve key growing agricultural markets. Our growing global reach further enables us to fulfill Mosaic's mission, to help the world grow the food it needs, while delivering compelling shareholder value." About The Mosaic Company The Mosaic Company is one of the world's leading producers and marketers of concentrated phosphate and potash crop nutrients. Mosaic is a single source provider of phosphate and potash fertilizers and feed ingredients for the global agriculture industry. More information on the Company is available at www.mosaicco.com.

Hatch helps Simplot expand Rock Springs phosphoric acid facility

March 4, 2013
Hatch has been retained by the JR Simplot Company for the expansion of phosphoric acid production at the Simplot Phosphates LLC facility in Rock Springs, Wyoming, USA. The scope of work includes detailed engineering, procurement, construction management and commissioning services for the expansion.
The expansion projects include a new isothermal phosphoric acid reactor vacuum system, #11 UCEGO vacuum table filter, first stage forced circulation phosphoric acid evaporator and 44 percent phosphoric acid clarifier and storage tank. The project also includes the elimination of the phosphoric acid plant cooling tower through utilization of a cooling pond water system for removal of heat from the phosphoric acid process.
Work on the prefeasibility phase began in early 2011 when Hatch helped Simplot to optimize the scope of work for the expansion projects. Construction began in August 2012 with phased start-up scheduled through June of 2014.
The Hatch Tampa office is working on the project.

Will Fertilizer Companies Lose Brazil's Business Forever?

by Sara Murphy, The Motley Fool Jun 11th 2013 5:01PM Updated Jun 11th 2013 6:00PM Around two years ago, Brazil declared its intention to wean itself off of fertilizer imports by 2020. While acknowledging that it could not fully meet domestic potassium demand, Brazil's stated aim was to become self-sufficient in nitrogen and phosphates, and to reduce its dependence on foreign potash (water-soluble potassium) significantly. Considering that Brazil is one of the world's largest potash consumers, importing 90% of its requirements, might this be shaping up to be a major blow to international producers?
Feeding a hungry planet Over the last 30 years, Brazil has transformed itself into a breadbasket, and it's done so in large measure by dramatically increasing farm inputs. The government is seeking to close that loop, putting pressure on the industry to triple spending on domestic fertilizer capacity over the course of the next five years.
Why might the country want to become less reliant on imports? Beyond the usual national security arguments, there's the matter of competitiveness. Transportation of nutrients to inland farms from ports can be very expensive and time consuming. As a result, Brazil's farmers are losing out to countries like the U.S.
To address this issue, Brazil's government wheedled miner Vale , in which it has a golden share, to invest in potash and phosphates. Vale's investment plan now calls for $8.8 billion in spending on fertilizers over the next five years. Coupled with related plans from state-owned Petrobras, predictions are that Brazil will reduce its overall dependence on fertilizer imports from 72% to 28% by 2017.
You'd think that this might have foreign potash suppliers quaking in their boots, but you'd be wrong.
PotashCorp and Russia's Uralkali are the two primary potash suppliers to Brazilian farmers. PotashCorp makes only a passing reference to Brazil in its 2012 10-K: "Potash from our Saskatchewan operations for sale outside Canada and the United States is sold exclusively to Canpotex, which is an export marketing and sales company. A significant portion of Canpotex sales are to China, Brazil, India, Indonesia, Malaysia and Japan."
CF Industries gets a little closer to stating a risk in its 2012 10-K: "Other geopolitical factors like temporary disruptions in fertilizer trade related to government intervention or changes in the buying/selling patterns of key consuming/exporting countries such as China, India and Brazil, among others, often play a major role in shaping near-term market fundamentals."
Agrium is all smiles in its 2012 annual report, highlighting the fact that it had expanded its retail presence in southern Brazil. Mosaic shows in its 2012 10-K that it derives nearly 20% of its net sales from Brazil, and identifies only currency risk in that market.
Not quite impending doom... Maybe this is because, for all its grand talk, Brazil is finding its progress toward self-sufficiency to be slow indeed. In 2012, Brazil consumed a record 8.1 million tons of potash, 9.3% more than in previous years. With 90% of that coming from imports, powerful voices within Brazil are concerned about the security of their agricultural boom.
But potash remains the toughest element of fertilizer's NPK triad. Vale's Taquari mine is expected to close in 2016, owing to exhaustion of its reserves. Taquari produces around 10% of Brazil's potash demand, so it will leave quite a void to be filled. Last week Vale also announced the suspension of its Rio Colorado venture in Argentina, which was supposed to turn Brazil's neighbor into a top potash supplier.
Meanwhile, despite publicly pushing to increase production, Brazil's government actually taxes domestic fertilizer production more heavily than imports. States charge sales tax on domestic fertilizers at 8.4% and levy a mining tariff of 2%, from which imports are exempt.
No wonder foreign suppliers seem to have concluded that Brazil is all bark and no bite. PotashCorp noted in its Q1 2013 earnings report that the "Latin American market, particularly Brazil, started the year at a record pace and we have a strong order book well into the second quarter." Agrium talks of leveraging "robust crop protection product demand growth in Brazil in 2013."
Trouble may still lurk Meet Verde Potash, a Brazilian fertilizer development company. Its Cerrado Verde project is a potash-rich deposit in the heart of Brazil's largest agriculture market is quickly scalable, and connects to Brazil's largest fertilizer distribution districts via existing and high-quality infrastructure. Vale is also looking at some potential new sites to fill the production gap from its Taquari mine.
And in what could turn out to be the biggest bombshell of all, Potassio do Brasil announced in April that it had discovered a large potassium deposit in the Brazilian Amazon. If the deposit is confirmed, Brazil could meet its own domestic demand within 10 years, according to the company.
Time will tell if this discovery is everything the company says. It certainly seems that near-term prospects for foreign suppliers remain strong. Still, investors should keep a close eye on Verde Potash and Potassio do Brasil, because they could prove to be game changers. And if the government ever gets serious enough to change its tariff structure, foreign suppliers may have to think twice about the risk they face in such a vital market.
With less and less arable land available around the world, increasing yields from existing plots could become vitally important to keeping up with expected population growth. Cheap and effective fertilizers could be the key to achieving this goal. As the global leader in potash production, PotashCorp has established several barriers to entry that make it nearly impossible for competition to break through. Click here now to access The Motley Fool's premium research report that covers precisely what these barriers to entry are and details several other key reasons why PotashCorp presents such a compelling investment opportunity today. The article Will Fertilizer Companies Lose Brazil's Business Forever? originally appeared on Fool.com.

Anglo American CEO: To Keep Copebras;Sees Strong Demand,Returns

LONDON -(Dow Jones)- Globally diversified mining company Anglo American PLC (AAL.LN) has decided not to sell its Copebras phosphates business in Brazil due to strong demand and high returns from the business, the company's chief executive said Friday. "We continue to look at the phosphates industry. Obviously there is a strong demand in the agriculture side," Cynthia Carroll told journalists in a call about its first half results. "We are seeing high returns and high demand for the near and medium term," from the business, she added. Copebras generated first half operating profit of $54 million, up more than four-fold on the previous period. Anglo American had previously considered selling the asset as part of its non-core disposal program which as so far generated $3.3 billion in cumulative proceeds. Anglo American also decided not to sell its Peace River Coal unit in Canada earlier this year for similar reasons and plans to expand the asset.

Anglo American wants to sell Copebrás again

Anglo American põe seus fertilizantes de volta no balcão
Procura-se desesperadamente o futuro da Anglo American Fosfatos, a antiga Copebrás. Nem mesmo Ruben Marcos Fernandes, presidente da divisão de fertilizantes da Anglo American no Brasil, se arrisca a fazer uma aposta. O próprio executivo foi pego no contrapé com a notícia que veio de Londres: os ingleses decidiram retomar o processo de venda da subsidiária.
O mandato, inclusive, já estaria nas mãos de um banco de investimentos norte-americano. Desta vez, a operação envolveria não apenas a unidade de fosfato, mas também a operação de nióbio, leiase a controlada Mineração Catalão. É mais um capítulo de uma novela cheia de zigue-zagues em exibição há mais de quatro anos. Em 2009, a Anglo American decidiu se desfazer da Copebrás, mas, depois de quase dois anos em busca de um comprador, não apenas desistiu do negócio como alardeou a promessa de pedalar o crescimento da controlada.
Ao que tudo indica, não passou de uma sublimação psicoempresarial. Há muito que a operação de fertilizantestornou-se um estorvo para os negócios da Anglo American no país, sorvendo recursos que deveriam ser destinados ao seu core business, ou seja, a produção de minério de ferro, níquel e cobre. Consultada, a Anglo American garante que continua "a avaliar o potencial de expansão" da divisão de fertilizantes.
É bom que se diga que a antiga Copebrás está longe de seus piores momentos. No primeiro trimestre do ano, as vendas cresceram 25% no comparativo com janeiro-março de 2012. O índice deverá se repetir no balanço do semestre.
Hoje, a taxa de ociosidade é de 10% da capacidade industrial, a menor dos últimos cinco anos. Na fabricante de fertilizantes, a expectativa é que este índice seja reduzido à metade até o fim do ano, não obstante a retração da demanda. Os ingleses já acreditam que o faturamento da controlada possa bater nos US$ 800 milhões em 2013, contra os US$ 700 milhões previstos inicialmente. Esses números, contudo, não parecem encorajar os ingleses a permanecer à frente do negócio. No momento, a recuperação é um estímulo à venda da empresa, passo que a Anglo American não conseguiu dar nos tempos de entressafra financeira da controlada. Mas é difícil não acreditar que haverá uma reviravolta (Relatório Reservado, 27/6/13)

Zuari Agro to invest Rs 4,400 cr in UAE fertiliser facility (from the http://www.thehindubusinessline.com)

Mumbai, Nov. 19: Zuari Agro Chemicals has signed an agreement with Ras Al Khaimah Maritime City to set up an integrated one million tonne a year diammonium phosphate manufacturing facility in the UAE. The project, being developed with an investment of $800 million (about Rs 4,400 crore), includes a power plant, private jetty and desalination plant. It is planned to be built over 400 acres in the free trade zone of RAK Maritime City. Suresh Krishnan, Managing Director, Zuari Agro, said the project would play a key role in the backward integration programme and help tap the fast growing global fertiliser market. Part of the $3-billion Adventz Group, Zuari has an annual installed capacity of 946,000 tonnes of fertiliser in Goa. The manufacturing facility comprises four separate plants, namely ammonia, urea, NPK A and NPK B. The plants employ the latest in pipe-reactor technology and are based on the slurry granulation process. The project in the UAE will further strengthen the company’s manufacturing foothold outside India. Last year, the company formed a joint venture with Mitsubishi Corporation, Japan, to form a new rock phosphate manufacturing company, MCA Phosphates Pte Ltd. Since then, MCA Phosphates acquired 30 per cent equity stake in Fosfatos del Pacifico of Peru for $46.12 million. Zuari Maroc Phosphates, a joint venture with Maroc Phosphore S.A., Morocco, acquired Paradeep Phosphates (PPL). At present, the company holds 80 per cent of the equity stake in PPL. PPL manufactures and markets complex phosphatic fertilisers and intermediary products such as phosphoric acid and sulphuric acid, which are crucial in the manufacture of phosphatic fertilisers. It has a plant located in the port town of Paradeep in Odisha, with an installed annual capacity of 720,000 tonnes of DAP and other phosphatic fertilisers. The off-site facilities comprise a 3.4-km closed conveyor from port to plant site, a railway siding, raw material storage yards and a 3.1-km long pipe rack.

Saint Paul said me

He was on his seventies, now and old men. Vinicius acomplished 60 and Paul said "I d´nt know he is so young! Yes, Vinicius, in his sixties was a young looking man!

How to build a Sulfuric and Phosphoric Acids Complex (photos of JIFCO em February 2013)

JIFCO - Eshidiya - Jordan

Project Highlights

Plant
1500 TPD of (P2O5) Phosphoric Acid and 4500 TPD Sulphuric Acid and related facilities at Eshidiya, Jordan.

Capital Cost
The Project Capital Cost is estimated at USD 671 million.

Funding
Debt : Equity Ratio 50:50. Equity contribution by sponsorers USD 335.5 Million, Loans USD 335.5 Million from International Financial Corporation (IFC) and European Investment Bank (EIB)

Equity
IFFCO and its affiliates 52% and JPMC 48%.

Loan Disbursement
The Financial Closure for the project is achieved and the first disbursal of 80 Million USD was made by the Senior Lenders on 23rd November 2011.

Effective date of start of Construction Activities
14th October, 2010.

Scheduled Completion of the Project
July, 2013.

Fluor Wins Contract for New Ma’aden Phosphate Project in Saudi Arabia New Contract for PMC Services at New Umm Wu’al Site

IRVING, Texas & RIYADH, Saudi Arabia--(BUSINESS WIRE)--Fluor Corporation (NYSE: FLR) announced today that the company was awarded a new project by Saudi Arabian Mining Company (Ma’aden). Fluor’s scope of work is to provide project management consulting (PMC) services related to the development of the Umm Wu’al greenfield phosphate project and related facilities in northern Saudi Arabia. Fluor will book approximately $200 million related to the contract in the fourth quarter of 2012. The project kick-off was commemorated at a contract signing ceremony held on December 1 in Saudi Arabia where Ma’aden representatives, local dignitaries and Fluor senior executives were present including Chairman & Chief Executive Officer David Seaton. Fluor’s scopes of work on the Umm Wu’al project will include the following areas: provide overall PMC services for the development of the Umm Wu’al phosphate project; supervise and manage the feasibility study including the development of basic design packages which is undertaken by FEED contractor; manage the development, strategy, and tendering of engineering, procurement and construction (EPC) packages; and manage and supervise all EPC contractors during EPC stage until project turnover closeout. “The Middle East has always been an important market for Fluor and we are delighted that our relationship with Ma'aden is expanding with the award of this significant project. We are honored that our client in Saudi Arabia recognizes the value that Fluor brings to a complex project like Umm Wu’al,” said Rick Koumouris, Fluor’s business line lead for Mining & Metals. "We will look forward to working closely with our client and bringing to bear all of the tools in our arsenal - especially our world class safety culture and rigorous processes and procedures - to secure the success of this project.” Fluor will execute the Umm Wu’al project from its offices in Al Khobar, Saudi Arabia with support from other global Fluor locations. The company has set a goal of at least 20 percent local Saudi labor content on the project beginning in year one. Once completed, the Umm Wu’al project will have an annual capacity of 100,000 metric tons per annum (MTPA) of food grade purified phosphoric acid; 90,000 MTPA of industrial grade sodium tripoly phosphate; 250,000 MTPA of animal feed grade dicalum phosphate/monocalcium phosphate; along with 280,000,000 MTPA of phosphate and compound fertilizers. The project will likely leverage much of the existing infrastructure including port, rail and other developments put in place by the Saudi Arabia Government.

Mosaic to enter JV with Maaden and SABIC

The Mosaic Company (NYSE: MOS) today announced that it has entered into a Heads of Agreement with Ma'aden and the Saudi Basic Industries Corporation (SABIC) under which the companies intend to enter a joint venture to develop integrated phosphate production facilities in the Kingdom of Saudi Arabia. The parties contemplate that Ma'aden, Mosaic and SABIC would own 60, 25 and 15 percent of the joint venture, respectively. The approximately $7 billion greenfield project, to be known as Wa'ad Al Shammal Phosphate Project, would be built in the northern region of Saudi Arabia at Wa'ad Al Shammal Minerals Industrial City, and would include further expansion of processing plants in Ras Al Khair Minerals Industrial City which is located on the east coast of Saudi Arabia. The joint venture would develop a mine and chemical complexes that would produce phosphate fertilizers, animal feed, food grade purified phosphoric acid and sodium tripolyphosphate for sale to customers worldwide. The highly cost-efficient facilities are expected to have a production capacity of approximately 3.5 million tonnes of finished product per year. Operations are expected to commence in late 2016. Under the terms of the agreement, Mosaic would contribute expertise to the design, construction and operations of the new facilities and acquire a 25 percent ownership stake. In connection with its equity share, Mosaic would market approximately 25 percent of the production of the joint venture. Subject to final financing terms, Mosaic's cash investment would be up to $1 billion, funded over a four-year period beginning in 2013. Read more: http://www.benzinga.com/news/13/03/3428005/mosaic-enters-phosphate-jv-with-maaden-sabic-in-saudi-arabia#ixzz2OByGkxc1

Brazilian Fertilizers Industry - I Phosphates

Vale: 5 mines (Tapira, Araxá, Catalão, Cajati and Patos de Minas), 6 H3PO4 unities (4 at Uberaba, 1 in Cubatão and 1 in Cajati), 7 chemical complexes (a huge combinat in Uberaba, 4 unities in Cubatão, plus Araxá, Cajati and Guará).
Anglo American: shares a mine in Catalão with Vale, has two chemical complexes (Catalão and Cubatão, with H3PO4).
Galvani: mines (Salitre and Angico dos Dias) and chemical complexes (Paulínia and Luis Eduardo Magalhães).
Heringer: SSP (in Paulínia) and a lot of mixers.
Tortuga - DSM: almost leader in DCP with H3PO4 from Morocco. Plants in Mairinque, São Vicente and Pecem.
Yara: some SSP and a lot of mixers around the country.
Roullier: some SSP and mixers.
ICL is a leader in food and tech H3PO4 with a PPA plant at Cajati and purified phosphates plants in São José dos Campos and a blending plant in São Bernardo do Campo.
J.J. Abdala has a mine in Registro (Serrote, Fosforita Alvorada).
Mosaic, ADM, and a lot of Brazilian and foreigners companies like Abocol have SSP and mixers.
B&A (BTG + Agnelli): is implementing a SSP plant in Arraias (the was former Itafos).
There are juniors everywhere (from Rio Grande do Sul to Pará, in the Amazon).
Bigger clusters are in Rio Grande, Paranaguá, Cajati, Cubatão, Araxá, Catalão, Uberaba, Salvador, Maceió and smaller in Ponta Grossa, Imbituba, Patrocínio, Paulínia, Angico dos Dias, Luís Eduardo and so on.
More than 10 million tons/year of products, around 5 million tons of P2O5 a year.

Peak phosphate

In "The history of phosphorus: Global food security and food for thought" Dana Cordell et al (Global Environmental Change, 19, 2009, 192-305) concluded that humanity became addicted to phosphate rock. Modern agriculture is relying in a non renewable resource. We need physical and institutional changes to avoid compromising severelly our future, because future phosphorus scarcity is not beeing addressed in a long term and equitable phosphate rock management point of view.

Honouring John Sinden

John Sinden is a british phosphate processing engineer and has 46 years of experience in the fertilizer industry. He began his work as an industrial chemist at Fisons Fertilizer (currently Yara Fertilizer) and later became a production manager at Plymouth. After that, he worked in the Central Technical Services (CTS) Unit, working directly for the production director. He was responsible for the process trouble shooting in all the granulation plants (14), super phosphate plants (3) and bulk blending units (20), he was also involved in all the other process plants - sulphuric acid and ammonium nitrate.
After the CTS unit was incorporated in the Process and Licensing Unit, he also started up six granulation units and two MAP/DAP plants in Brazil, Uruguay and Turkey. During this period he was responsible for the basic process design and/or feasibility studies for granulation projects in Turkey, Cyprus, Poland and Yugoslavia.
As Technical Manager of Manah S.A., he was responsible for all aspects of process development and control, project and product research and development.
John Sinden has carried out many process audits and due diligence studies on ROP SSP/TSP, G/TSP, NPK and DAP/MAP/AP and Granulation units in Brazil, Uruguay, South Africa, Canada, Australia, New Zealand, Egypt, Portugal, Austria, Lithuania, Morroco, Indonesia, India, Mexico and USA.
He is a Senior Partner of JSA Ltda, Brazil and is a world-renowned consultant engineer and is considered a leading phosphate rock to fertilizers specialist.
In 2010John was awarded the Pierre Becker memorial award by IFA for his services to the fertilizer industry.
His pupils are kindly called “Sinden´s Boys” in Brazilian fertilizers companies.

Long term price prediction for Bayóvar rock

Average long-term forecast pricing for Sandpiper Product FOB Namibia blended across the three target market segments is expected to result in an approximate 12% discount (based on both quality and freight differentials) to the price of rock phosphate from the Bayovar mine FOB Peru. The current price of Bayovar rock phosphate is approximately US$145 - 150 / tonne, FOB Peru. 2 CRU’s long-term real price forecast for Bayovar rock phosphate is approximately US$114 / tonne, FOB Peru (stated in March 2012 prices). souce: http://www.minemakers.com.au/downloads/120418FINALSandpiperPositiveFeasibilityStudyResultsandResourceUpgradeFINAL.pdf

India 2012 Q4 phosphoric acid market

India phosacid Q4 price settles at $855/mt P2O5 CFR, down $30/mt As reported in the October 9 Market Alert, OCP has agreed the Q4 price for Moroccan phosphoric acid supply contracts with its joint venture partners at $855/mt P2O5 CFR with 30 days credit, down $30/mt on the Q3 price.
It is understood that the Moroccan supplier will ship around 80-90,000 mt/month P2O5 during the fourth quarter, below the normal allocation of around 100-110,000 mt/month P2O5.
The new price equates to a cash cost price for indigenous DAP in the mid $590s/mt CFR against ammonia pricing at over $700/mt CFR,which is above the established benchmark for imported DAP at $580/mt CFR.

Phosphoric acid and phosphate fertilizers prices in 2013

By Magnus Berge Ethiopia's tender award business totalling 250,000 mt DAP for November-February 2013 shipment shows clearly downward pressure on prices for Q4. Estimated netbacks on sales based on a total costpackage for delivering the product at Djibouti in the low-to-mid $60s/mt from Ras Al-Khair, Saudi Arabia are in the high $530s/mt to the mid $550s/mt FOB Ras Al-Khair against delivered prices at $602- 617.30/mt CFRLO. The low end of the price range reflects shipment into the first quarter of 2013 while the high end shipment into the fourth quarter of 2012. However, Sabic claims returns in the mid $560s/mt FOB for Q4 shipment in line with netbacks against India contract business at $580/mt CFR benchmark to the $550s/mt FOB for Q1 2013 deliveries against a total cost-package of around $45/mt. The US domestic market remains far above the rest of the globe in terms of demand and price, essentially eliminating US tons from the export market for the near term. US producer Mosaic is as much as 30 days behind in some US deliveries, according to customer reports to Fertilizer Week. As a result DAP barge values now equate to at least $606/mt FOB US Gulf, not including any margin or transfer costs. The result has been to attract more import cargos, although that trade continues to be dominated by higher analysis MAP. India's Q4 phosphoric acid contract price has settled at $855/mt P2O5 CFR, down $30/mt on the Q3 price. The contracts cover around 80- 90,000 mt/month P2O5 ex-Morocco for Q4 deliveries with OCP's joint venture partners. The new price equates to a cash cost price for indigenous DAP in the mid $590s/mt CFR against ammonia pricing at over $700/mt CFR, which is above the prevailing price for imported DAP at $580/mt CFR.

OCP agreed to cut prices to India in te beggining of 2012)

LONDON (ICIS)--Moroccan fertilizer producer Office Cherifien des Phosphates (OCP) has agreed to cut first-quarter phosphoric acid prices for Indian buyers, the company said on Friday. Protracted talks, which had entered their seventh week due to price disputes, were concluded with an agreement to slice fourth-quarter prices for India by $120/tonne (€91.20/tonne). 17 February 2012 12:04 OCP and its Indian joint venture partners Paradeep Phosphates Limited (PPL), Zuari, and Tata Chemicals Limited (TCL) have settled first-quarter 2012 contracts at $960/tonne CFR (cost and freight), which nets back to around $880/tonne FOB (free on board). Due to the delay in concluding the contracts, OCP will ship a smaller volume than usual, up to a maximum of 50,000 tonnes of phosphoric acid by the end of March. Declining international prices for finished product diammonium phosphate (DAP) had led to expectations that contract prices for raw materials phosphate rock and phosphoric acid would be lowered. OCP had already agreed to cut first quarter phosphoric acid prices by $50/tonne from fourth quarter settlements to $950–1,085/tonne FOB for European buyers at the end of January. PPL, Zuari and TCL had initially targeted $930/tonne CFR, citing low domestic demand for DAP and the $80–100/tonne plunge in the benchmark US Gulf export price for DAP in late December. Although OCP declined to comment on the negotiations, it is understood the supplier was targeting $1,000/tonne CFR. OCP usually leads supplier-buyer contract negotiations for raw materials, but the stalled talks resulted in smaller players such as South African phosphoric acid producer Foskor concluding at $960/tonne CFR with Indian joint venture partner Coromandel earlier this month. The reduced phosphoric acid price is likely to place pressure on US phosphate fertilizer producer PhosChem to similarly drop the price of DAP sold to India under a three-year contract to supply 6m tonnes. The current DAP contract price of $677/tonne CFR is due to be renegotiated during annual talks next month. ($1 = €0.76) For more information on phosphates and other fertilizers, please visit icis pricing fertilizers Follow Karen Thomas on Twitter By: Karen Thomas

Phosphoric Acid Economics

Imagine an ideal place near an ideal sea port from where we could import phosphate rock and sulfur. To produce Phosphoric Acid (and its predecessor, Sulfuric Acid) at a rate of 200.000 tonnes of P2O5 a year, the fixed capital is supposed to be US$ 300 million in 2013.
The operating costs are: Phosphate Rock (at US$ 150 per tonne and 3 tonnes per tonne of P2O5), Sulfur (at US$ 80 per tonne and 1 tonne per tonne of P2O5), power, water, labor (may be 50 very skkilled personnel) and the disposal of gypsum.
Selling price is over US$ 1.000 per tonne of P2O5, but do the right calculations and you will see we are not making a lot of profity...

Brazilian agricultural production in 2012

Brazilian agricultural production rose to R$ 305 billions in 2012 (US$1=R$2) up from R$ 242 billions in 2011. São Paulo lost its first position in that country to Mato Grosso, due to losses in oranges (R$ 10 billions against R$ 3 billions) and coffee.

Agrium, Redwater, Alberta, Canada