Merry Christmas and Season´s Greetings

ICL Makes A Step Change In Its Global Phosphate Business By Forming A Strategic Alliance With China's Yunnan Yuntianhua

-- ICL to invest up to $500 million for 50% ownership of a joint venture that will operate a fully integrated, world-scale phosphate business in China and a 15% strategic holding in Yunnan Yuntianhua, Asia's leading producer of phosphate rock. The transaction will be cash EPS accretive for ICL from the first year, with an EV/EBITDA ratio of 7.4 based on second year projections ---- The joint venture will include a mine that produces ~2.5 million tonnes of phosphate rock annually for the next 30 years, a world scale downstream phosphate operation and a marketing and sales organization that primarily serves the Chinese and the Asian markets ---- The strategic alliance will leverage ICL's and Yunnan Yuntianhua's technical, marketing and production expertise and will include a joint phosphate R&D platform in the Yunnan province to develop process improvement and new products for both partners ---- ICL has identified significant expansion and synergy potential: the major thrust of the JV's strategy will be the transformation from a commodity fertilizer company to a specialty player in Agriculture, Food Ingredients and Engineered Materials ---- With this transaction, ICL continues to implement its "Next Step Forward" strategy: diversifying and upgrading its sources of raw materials in line with global end markets, especially in emerging markets (China, Brazil, India and Africa); expanding its end market reach to fulfill essential needs in agriculture, food and engineered materials; and improving company-wide efficiency and cost positions. ICL intends to continue exploring further opportunities in these directions --

ICL COMPLETES ACQUISITION OF 100% OF FOSBRASIL S.A.

 

 

- Purchase of ICL’s former joint venture partner, Vale’s, and Prayon’s shares of Fosbrasil strengthens ICL’s Performance Products’ position in the global market for purified phosphoric acid while expanding its footprint in South America –

- ICL’s customers to benefit from a broader line of phosphoric acids and phosphates as well as increased production and customer support -   - Transaction in line with ICL’s "Next Step Forward" strategy: growing its core businesses and expanding into large and growing markets worldwide -

Uses of Phosphoric Acid: from fertiliser to anti-nausea medication

Merry Christmas and Season´s Greetings

Phosphorous is vital for plant growth, so farmers use phosphoric acid-based fertilisers to supplement their crops

In simple terms, you can sayphosphoric acid is a weak inorganic acid with the formula H3PO4. However, it’s not as simple as it may seem … and phosphoric acid needs to be seen as a family and not an individual compound.

In this family, the simplest “member” is referred to as orthophosphoric acid and it represents a single phosphoric acid unit. When two or more of these orthophosphoric acid units “bump” into each other, they have a tendency to bind together, forming pyrophosphoric acid (2 units, H4P2O7), tripolyphosphoric acid (3 units, H5P3O10), tetrapolyphosphoric acid (4 units, H6P4O13) and so on. Collectively these are known as polyphosphoric acids. 

What is phosphoric acid?

At room temperature, pure phosphoric acid is a non-toxic, colourless, odourless, hygroscopic crystal. Commercial products are typically sold as a viscous solution in water, with varying concentrations according to use.

• Molecular formula: H3PO4 (orthophosphoric acid)
• Odour: odourless
• Colour: colourless
• Taste: Acid taste
• Boiling point: 407 degree Celsius
• Melting point: 42.4 degree Celsius
• Corrosivity: corrosive to ferrous metals, in particular highly concentrated solutions (85%)
• pH=1.5 in solution (0.1N)
• Solubility: soluble in water, alcohol and a 3:1 ether:alcohol mixture
• Forms 3 series of salts: primary, dibasic and tribasic phosphates
• Chelating agent
• Reacts readily with metals for form hydrogen gas
• Forms toxic oxides on combustion

Mode of preparation

In industrial settings, phosphoric acid can be produced via two separate routes, known as the wet process and the thermal process. Although the wet process is more predominant, the thermal process tends to be the preferred option for uses in the food industry.

• Wet process: This method involves treating fluoroapatite (known as phosphate rock, 3Ca3(PO4)2.CaF2) with concentrated sulphuric acid (H2SO4). The initial solution only contains about 30% phosphoric acid, but can be concentrated after water evaporation. In addition, by-product calcium sulphate (CaSO4) and other impurities can also be filtered and removed.
  Ca3(PO4)2 + 3H2SO4 -> 2H3PO4 + 3CaSO4
• Thermal process: This method generates a much purer phosphoric acid solution, as the starting point is pure elemental phosphorus, thus avoiding all impurities present in apatite. In this process, phosphorus is “burnt” to phosphorus pentoxide (P2O5) at high temperatures (1500-2500 degree Celsius) and then hydrated to phosphoric acid. Further purification steps may be needed for food or medical uses, to remove all traces of impurities.
  P4 + 5O2 -> 2P2O5
  P2O5 + 3H2O -> 2H3PO4

Phosphoric acid as fertiliser

For plants, phosphorus is an essential major nutrient. This means its functions cannot be performed by any other nutrient, and therefore an adequate supply is vital for development and growth. Farmers know this only too well, and commonly use phosphoric acid-based fertilisers to supplement their crops. In fact, the vast majority of the worldwide production of this compound is used in the manufacture of these agricultural products.

Typically the cheaper wet process is used, and several grades can be obtained, with varying concentrations of phosphoric acid. Products range from 0-20-0 (reflecting N-P-K content) to 0-79-0, with superphosphoric acid, depending on the “clean-up” steps following synthesis. Fertilisers are usually a mixture of ortho and polyphosphate, which are less corrosive than pure orthophosphate and easier to store at sub-freezing temperatures.

Phosphoric acid as a food additive

The second most common application is in the food industry, using phosphoric acid produced following the more expensive thermal process. Next time you go for a bottle of fizzy drink, check the ingredient list and most likely you’ll find E338. Typically, this additive is used to give various foods and drinks a sour and tangy taste. The list of examples is long, including from carbonated beverages and beer to chocolate and processed meat.

Niche applications

In addition to the two most common uses referred to above, phosphoric acid is used in a variety of niche applications, including:

• Rust removal: This compound can be simply applied directly on rusted iron or steel, where it can convert rust (iron(III) oxide, Fe2O3) to ferric phosphate (FePO4). Multiple applications may be needed.
  2 H3PO4 + Fe2O3 → 2 FePO4 + 3 H2O
• Protection against rust: Phosphoric acid can also provide some protection against the development of rust via a phosphate conversion coating. The anti-rust properties rely on a thin coating with a dilute solution of phosphoric acid. Reacting with the surface to protect, this coating forms a thin layer of insoluble crystals, impenetrable to rust attacks.
• Dentistry: Used by dentists as an etching solution. The phosphoric acid is used to “scratch” the smooth surface of the teeth, providing a grip for dental appliances or fillings. For the same reason, it can also be used as a plaque remover and teeth whitener.
• Anti-nausea medication: This compound is a common ingredient in several over the counter anti-nausea medications
• Cleaning products: Phosphoric acid can be a strong cleaning agent, typically used in construction to clean mineral deposits and cement stains. It’s also an ingredient in many household cleaning products, used as a dispersing agent.
• Other applications include:
  • buffer agent in chemistry and biology
  • electrolyte in phosphoric acid fuel cells
  • electrolyte in oxyhydrogen generators
  • electrolyte in copper electropolishing
  • oxidising agent
  • catalyst in the synthesis of ethanol
  • wet etching agent in compound semiconductor processing
  • pH regulator in cosmetic products
  • pH regulator in hydroponics

If you want to find out more, don’t forget to check out our resources list for detailed information about phosphoric acid.

RESOURCES

Pubchem.ncbi.nlm.nih.gov, (2014).Phosphoric acid – PubChem. [online] Available at:https://pubchem.ncbi.nlm.nih.gov/summary/summary.cgi?cid=1004&loc=ec_rcs[Accessed 20 Aug. 2014].

ChemSpider, (2014). Phosphoric acid. [online] Available at:http://www.chemspider.com/Chemical-Structure.979.html [Accessed 20 Aug. 2014].

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Alex Reis

Alex Reis is a freelance science writer, with a particular expertise in the field of biological sciences. She has several years experience in scientific writing and research, with various scientific manuscripts published in high impact factor journals, including Nature Cell Biology, as well as articles promoted in more mainstream publications.

Vale still searching for partner in fertilizer industry

Provider: Valor Econômico

December 11, 2014 (08:28)

A year after admitting it was looking for a strategic partner for the fertilizer division, in line with its strategy of concentrating the focus on iron ore, miner Vale keeps giving no signals on the status of its search. Meanwhile, the company’s investments to increase the domestic supply of raw materials for the production of fertilizers are uncertain and make room for a continuous increase in imports, which now account for about 70% of a demand that continues to grow.
Market sources claim that Vale could partner with a single group or seek less ambitious one-time projects. Nevertheless, the miner seeks companies with know-how in fertilizers and does not want to get rid of the control of a business that it was “convinced” to buy during the government of Luiz Inácio Lula da Silva. Depending on the model chosen, one or more joint ventures are expected to be created.
Without offering clues on which path it will follow, in recent days Vale has been reinforcing statements about its search for partner in the sector. On Tuesday, Vale CEO Murilo Ferreira said the company continues to work “intensively” to reach an agreement in this segment.
Companies with bigger chances to be partner of Vale include Norway’s Yara, several industry representatives told Valor. Yara said “it did not comment on market rumors.” According to these sources, Yara is interested in increasing its stake in phosphate fertilizers. A step has been taken in this direction with the acquisition of a 60% stake in the Brazilian group Galvani earlier this month.
Worldwide, Yara is best known for its leadership in the nitrogenous fertilizer industry. The company began to operate timidly in Brazil in the 1970s. From the 2000s, it started making acquisitions in the country and today is a leader in the domestic distribution of fertilizers, with a 25% share.
The leading position in the Brazilian market was made possible with the acquisition of the fertilizer operations of American multinational Bunge last year. In Brazil, Yara has 33 fertilizer mixing units and three producing phosphate fertilizers.
The market has also speculated that its future partner in this sector would be an Indian company. Indian cooperative IFFCO, one of the world’s largest manufacturers and distributors of fertilizers in the cooperative sector, said it would not comment on the matter. Last year, the IFFCO announced a long-term contract with Vale for the supply of phosphate ore from the Bayóvar mines in Peru.
Vale returned to the fertilizer market after acquiring shares of multinational and Brazilian companies in Fosfértil, a former state-run company which was privatized in the 1990s. In 2010, Vale completed the purchase of Bunge’s assets in the segment and the acquisition of Fosfertil’s controlling interest in a $4.7 billion deal.
More so because of the government’s pressure, Vale’s investment generated huge expectations in the Brazilian market, historically dependent on imported fertilizers. But the company didn’t embark on an investment wave in the segment, as expected, and despite strong growth in domestic demand, the country’s fertilizer production lost space and even declined in 2013, down 4.3% compared to 2012.
From January to October this year, the country produced 7.350 million tonnes of intermediate fertilizers, a 6.5% drop over the same period of 2013, according to the National Association for the Promotion of Fertilizers (Anda). In the same comparison, imports grew 11%, to 20, 421 million tonnes, and domestic sales increased 5.7%, to 27.448 million tonnes.
These figures show that Brazil is still far from reducing its historic dependence on imported fertilizers. And the scenario should not change much in the coming years. It may even worsen, given that local sources of ore are in fact scarce and new exploration projects demand billions in investments.
Also, industry officials say a major reason for not investing in the production of raw materials for fertilizers in the country is the lack of tax equality, since the imported product is not taxed, unlike the one produced in the country. The demand for a change is old, but there the government gives no sign if it will announce new rules son.
Investments in production of raw materials for fertilizers in the country totaled $13 billion in 2013, to be disbursed by 2018, according to Anda. Of this amount, Vale is one of the largest investors. If materialized, these $13 billion investment would represent an additional production of 9 million tonnes of intermediate fertilizers and could reduce by $4.5 billion the deficit in the industry’s balance by 2018, according to calculations of Anda. Vale represented most of that amount. The trade group’s calculations forecast additional production of 9 million tonnes of intermediary fertilizers and could cut up to $4.5 billion from the segment’s trade deficit until 2018.
If Vale Fertilizantes sell its assets to some company, there would not happen a big change in the fertilizer market, as production in this case would only change hands, sources say. Unlike acquisitions in the fertilizer distribution business, which ended up being more concentrated in recent years

China Emerged as a Major Supplier of Phosphates to India

China’s phosphate demand has grown significantly as its agriculture has intensified. DAP/MAP consumption has experienced an annual growth rate of 15 percent over the past decade as phosphate fertilizer consumption grows and farmers use more high analysis products. During the same time period, investment in DAP/MAP production capacity produced an average annual capacity growth rate of almost 29 percent. This has resulted in China becoming a net exporter, supplying DAP to key countries in Asia, including India, but also selling some product to Latin America.
See more at: http://www.potashcorp.com/overview/nutrients/phosphate/market-overview/china-phosphate-profile#sthash.8SaBex30.dpuf

Global Phosphoric Acid Capacity Additions from 2014 to 2018

Majority of Capacity Being Developed in Saudi Arabia and Morocco.
New downstream phosphate capacity is expected to be developed in regions able to expand phosphate rock production.
The Ma’aden project in Saudi Arabia, with a capacity of 2.9 million tonnes of DAP per year, continues to ramp up following a lengthy series of start-up delays. A joint venture between Mosaic, Ma’aden and SABIC was recently announced, with plans to build a phosphate complex capable of producing 3.5 million tonnes of finished product annually.
In Morocco, OCP has built granulation capability to enhance its production flexibility. OCP is reportedly working on developing four projects at their Jorf Lasfar site which will house fully integrated phosphate plants capable of producing a variety of solid phosphate fertilizers.
Phosphoric acid capacity additions in China are expected to slow as Chinese producers near the end of the expansion boom that commenced in late 2009. 
See more at: http://www.potashcorp.com/overview/nutrients/phosphate/market-overview/global-phosphoric-acid-capacity-additions#sthash.PwD0UV7z.dpuf

ULTRAFERTIL, the legend goes on

(see brief history in Portuguese at http://www.novomilenio.inf.br/cubatao/ch100n.htm
Antes mesmo de concluir suas instalações industriais e portuárias, a Ultrafértil iniciou (em 1967) a importação de fertilizantes a granel pelo Porto de Santos, produzidos pela Phillips Petroleum. Foi acusada, na época, de participar dedumping, pois vendia o produto importado a baixo preço, com o objetivo de "limpar a área dos concorrentes nacionais de menor porte" (Bandeira, 1975:171).

O terminal marítimo da Ultrafértil entrou em funcionamento em 28 de julho de 1969. Localizado a 6 km da fábrica, tinha 240 metros de comprimento e 15 de largura. A exemplo da Cosipa, a Ultrafértil também teve que enfrentar o Sindicato do Portuários de Santos, bem como a Companhia Docas, para poder operar seu próprio porto.

A Ultrafértil foi solenemente inaugurada em 1 de junho de 1970, com o pomposo título de "maior complexo de fertilizantes da América Latina". Era constituída por sete fábricas integradas e pelo terminal marítimo, que quando em plena atividade seriam capazes de produzir 400 mil toneladas/ano.
Started up in 1970 Ultrafertil as a jv of Grupo Ultra (Igel family), and Philips Petroleum gone under state control as Petrofertil (an army of Petrobras), privatized as Fosfertil-Ultrafertil in 1993.

Now, since 2011, Vale Fertilizantes, Unit Cuabatao 2, the "Colossus of Piaçaguera" still produces NH3, HNO3, NH3NO3, H2SO4, H3PO4 and MAP. (Unity 3 produces SSP at same Av. Plinio de Queiroz at Jardim São Marcos, Cubatão).

Converted to Bayovar Phosphate Rock recently, its is doing great in developing this "new" rock to Phosphoric Acid Production.

Following the path of previous generations, its crew is promoting peruvian phosphate as a new "american standard" in the "high concentration" phosphates industry. 

CADE to reexamine Fosbrasil acquisition

A Superintendência Geral do Conselho Administrativo de Defesa Econômica (Cade) decidiu remeter para análise do tribunal do órgão a aquisição de 44,25% da Fosbrasil (participação anteriormente detida pela Vale) pela ICL Brasil. Com a operação, a ICL passará a deter 88,50% da Fosbrasil, consolidando seu controle no capital da empresa. A decisão da superintendência está presente em despacho publicado no Diário Oficial da União desta sexta-feira, 24.

Quando não gera preocupações concorrenciais, operações de natureza semelhante são aprovadas diretamente pela Superintendência. No caso ICL/Fosbrasil, entretanto, foi considerada a necessidade de o tribunal do Cade se pronunciar sobre o negócio.

A Fosbrasil é a principal fornecedora nacional de Ácido Fosfórico de Grau Alimentício(PPA), usado para a produção de sais de fosfato, matéria-prima utilizada em diversas indústrias, tais como alimentícia e de produtos de higiene e limpeza. A ICL, por sua vez, é a principal empresa atuante no mercado de sais de fosfato no Brasil, que utiliza o produto fabricado pela Fosbrasil como matéria-prima em sua atividade.

Diante da relação de fornecimento entre as duas empresas, a Superintendência considerou que esse ato de concentração, tal como estruturado, poderia incentivar a Fosbrasil a discriminar ou mesmo recusar o fornecimento do PPA a outras fabricantes de sais de fosfato, com o objetivo de favorecer a ICL.

A Superintendência informa que, após estudos e consultas ao mercado, verificou que a opção de importar o PPA ou a maioria dos sais de fosfato seria pouco viável para as empresas concorrentes, e isso facilitaria eventual estratégia de discriminação por parte da Fosbrasil. Foi identificado que a única concorrente da empresa no Brasil não tem capacidade produtiva e técnica para competir adequadamente nesse segmento. "A eventual redução da competitividade no mercado de sais de fosfato poderia resultar em restrições de oferta e aumentos nos preços do produto no Brasil, com potencial de prejudicar a cadeia produtiva que utiliza os sais como insumo, incluindo a indústria de alimentos", considerou a superintendência.

O tribunal do Cade, portanto, será responsável pela decisão final sobre a aprovação, reprovação ou adoção de eventuais medidas que afastem problemas concorrenciais. As determinações do tribunal podem ser aplicadas de forma unilateral ou mediante acordo com as partes. O ato de concentração foi notificado em 30 de abril deste ano. O prazo legal para a decisão final do Cade é de 240 dias, prorrogáveis por mais 90 dias.

What will happen in Brazilian Fertilizers soon?

Brazil is an enormously important player on the supply side of the fertilizer market with a number of exciting nitrogen, potash, phosphates and AP projects, it is also a very important importer of fertilizers and the largest producer of a range of agricultural products in Latin America.
Big multinationals like Mosaic, Potash, Yara, OCP, ICL, are making movements in order to consolidate with another local players like Vale, Anglo American, Galvani and Heringer. 
Transgas is talking about a US$ 2 billion site from coal to gas to NH3 and Urea, in the coal basin of South Santa Catarina. And Petrobrás is investing firmily in Nitrogen in Três Lagoas (Mato Grosso do Sul) and planning Linhares (in Espírito Santo).
Roullier, Mbac, B&A, are too in the "raw materials" side.
Besides, AMA congregates "blenders" all over the vast interior, where circa 30 million tons are shipped over the clock to prairies ("cerrado"), to the South ("planaltos", "serras" and "pampas"), up to the dry Northeast, and the Amazon, not to forget the central states of São Paulo, Minas and Rio.

Mosaic cuts phosphate fertilizers production

The Mosaic Co. is reducing production of phosphate fertilizer, citing high sulfur and ammonia prices.
The Plymouth-based crop nutrient producer said it doesn't expect to cut employees, though the move will lower operating rates at its mines and concentrates plants.

CF and Yara in merger talks

Norway's Yara International and CF Industries CF in Your Value Your Change Short position said they are discussing a merger that would create a ne w, nearly $19 billion-a-year powerhouse in the global fertilizer business and extend the industry's recent run of consolidation.

A deal would create the world's biggest producer of nitrogen fertilizers, combining Yara's global distribution system with CF's proximity to low-cost natural gas—a key component in nitrogen fertilizer—as sliding crop prices and rising competition from China increase pressure on fertilizer makers.

A tie-up also could face regulatory scrutiny, analysts said, as the two companies have sizable combined market share in some countries.

The companies, in statements confirming the talks, said they are at an early stage and may not result in a deal. Yara spokesman Esben Tuman said the discussions are driven by a belief that the companies have complementary geographic focuses.

A CF Industries spokesman didn't respond to requests for comment.

Share prices of both companies rose Tuesday after the firms disclosed the talks. Yara, which had revenue of $13.4 billion last year, and CF Industries, whose 2013 revenue totaled $5.47 billion, have a combined market valuation of about $26.4 billion. That would rank a merged company just below the $28.8 billion market cap of Canadian fertilizer giant Potash Corp. of Saskatchewan, the world's largest producer of potash, another type of fertilizer that is made from minerals.

Fertilizer companies have done a string of deals in recent years, to reduce costs and gain traction overseas. Yara recently acquired fertilizer producer OFD Holding Inc., strengthening its Latin American operations after last year spending $750 million to buy the Brazilian fertilizer operations of grain-trading firm Bunge Ltd.                     

 

Yara buys 60% of Galvani

Galvani was a Family owned Brazilian fertilizer company with two principal sites (in Paulínia - São Paulo and Luís Eduardo Magalhães - Bahia).
The purchase will cost around US 320 million (assets, plus debt) and additional provisional investments (oppening of one mine in Salitre and another in Santa Quitéria).
By this way Yara reinforce its commitment to be a raw material phosphate producer in Brazil, combing Galvani with the recently bought former Bunge retailing NPK operations (that gives Yara a 25% NPK Market share in Brazil).

Maaden Phosphate new JV gets its money to go ahead

Source: Seeking Alpha
Saudi phosphate project gets $5B financing deal

Jul 1 2014, 08:20 ET

• Saudi Arabia's Ma'aden says it signed a $5B financing deal with commercial banks and a state-owned investment fund to back its $7.5B phosphate production project in the country.
• The project is a joint venture between Ma'aden, Saudi Basic Industries Corp. and Mosaic (MOS), and is part of Saudi state efforts to create a stronger industrial base beyond oil refining and export.
• The project will have a production capacity of 16M metric tons/year of phosphate concentrate, sulphuric acid, phosphoric acid, as well as plants to produce calcium monophosphate and calcium diphosphate; phosphate production expected to start in late 2016.

Argus FMB Strategy Report: World Processed Phosphates Outlook to 2028

 

This strategy report examines the major changes currently underway in the industry, and their impact on the future shape of the sector.
In particular the report addresses:

• The significant role of China in the phosphates market, with forecasts of its continued capacity build-up, and the likely development of its exports
• The major influence of OCP on processed phosphates and in particular the future of its Jorf Lasfar Phosphate hub
• The decline of production in North America and Europe, and inevitable closures
• Changes in the patterns and mix of phosphate products, particularly amongst ammonium phosphates
• Demand growth for processed phosphates, international trade and pricing
• The increasing role of micronutrients in phosphate products as a path to balanced fertilization and product differentiation

The report provides annual price forecasts to 2028 for the key international processed phosphate benchmarks: DAP, MAP, TSP, SSP, and phosphoric acid.
The report presents essential insights, analysis and guidance for producers and consumers of processed fertilizer phosphates, as well as academics and investors in the fertilizer industry.
Purchase the study or request more information

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Argus FMB Strategy Report: World Phosphate Rock Outlook to 2028

The World Phosphate Rock Outlook to 2028 is a ground-breaking document. It tackles the important issues of the day:

• The peak phosphates debate - how credible is it?
• Declining grades - will new phosphate rock currently under assessment be suitable for merchant deliveries or acid plants
• What is the impact of impurities on the suitability of rock for the main end-uses
• Where will investment be seen and at what overall project cost
• What is the future of rock trade and how will the quality of rock traded alter
• What will be the impact of entry costs and the poorer grade/quality of ore being mined

The phosphate industry is undergoing major changes. The World Phosphate Rock Outlook to 2028 analyses the changes which are already occurring in the availability of various grades and qualities of rock. The companion study “Argus FMB Strategy Report: World Processed Phosphates Outlook to 2028” analyses the impact of changing rock supply on the type and production which can be produced using poorer grade/quality rock.

Ma´aden awards $2.25 bln of work on phosphate project

Dec 23 (Reuters) - Saudi Arabian Mining Company (Ma'aden) has awarded three contracts worth a combined 8.46 billion riyals ($2.26 billion) to Canadian and Asian companies concerning its new phosphate mining and production project, it said on Monday. The project in Waad al-Shimal City in the north of the country is a joint venture between Ma'aden, Saudi Basic Industries Corp and Mosaic. Canada's SNC Lavalin and China's Sinopec Engineering Group have won a 2.86 billion-riyal deal to build a power plant and a sulphuric acid plant which has a production capacity of 4.9 million tonnes, Ma'aden said in a bourse filing. South Korea's Hanwha Engineering & Construction Co won a contract to build a phosphoric acid plant worth 3.5 billion riyals. The plant will have a production capacity of 1.5 million tonnes. China Huanqiu Contracting & Engineering Corp Co won a contract to build an ore beneficiation plant worth 2.08 billion riyals with a production capacity of 5.3 million tonnes. The projects are due to be completed in 2016, Ma'aden said. Ma'aden aims to close fundraising for its $7 billion phosphate project before the end of the year, a timetable reiterated in Monday's statement.

Doyle leaves legacy of discipline at PCS (from Argus Media)

Houston, 14 April (Argus) — The world’s largest potash producer by capacity has tapped a new chief executive with no fertilizer experience to replace a man whose name is synonymous with the word ‘potash’ and conservative supply-side strategy. Bill Doyle is stepping down as the head of PotashCorp (PCS), with Jochen Tilk named as his replacement effective 1 July. Doyle announced his resignation last week, having led the company for 15 years through prosperous and tumultuous times. Doyle leaves a legacy of strategic producer tactics, matching supply to demand to support potash prices. Doyle’s adherence to a price-over-volume marketing strategy brought needed orderliness to the market, according to industry sources. “Bill really ushered in a form of supply and demand discipline to the industry, something it had very little of,” American Plant Food vice president of sales Toby Hlavinka said. “He [dragged] the industry with him, some kicking and screaming. I think everybody in this industry is better off because Bill Doyle was in it.” Doyle, who has been at PCS for 27 years, oversaw significant price volatility for a crop nutrient that had historically seen relatively stable and low prices. “He was such a huge figure in this world,” Ameropa managing director Nick Adamchak said. “Bill was the consummate marketing guy.” From 1999 when Doyle was named chief executive through 2006, the average midpoint standard muriate of potash (MOP) price was $135/tonne (t) fob Vancouver, topping out at $183/t in February 2006. A major price run-up began in 2007, spurred by record demand from China (9.4mn tonnes) and the asset bubble ahead of the 2008 financial crisis. Standard MOP prices reached as high as $875/t fob Vancouver by the end of 2008. By September 2009, prices tumbled by nearly half to $473/t as a result of the financial crisis. PCS reacted by significantly cutting back potash production, producing 3.1mn tonnes of MOP in 2009, down from 7.5mn tonnes the previous year. Potash prices fell further to the $340s/t fob Vancouver by 2010, the same year that Australian mining giant BHP Billiton made a $40bn hostile takeover bid for PCS. Doyle, with support of the Canadian government, successfully fought off the bid, which BHP Billiton withdrew in November 2010. MOP prices recovered in 2011, with the average price holding at $483/t fob Vancouver from July 2011-April 2012. Since then, prices have steadily declined because of global oversupply and anemic demand. The unexpected breakup of the exporting arrangement between Russia’s Uralkali and Belarus’ Belaruskali in July 2013 added considerable market uncertainty. Uralkali, one of PCS’ chief competitors, switched to a volume-over-price marketing strategy, increasing supply and further depressing prices, which reached a low of $293/t fob Vancouver in February 2014. The move challenged Doyle’s long-held marketing philosophy. He publicly called the event “the single dumbest thing that I’ve ever seen.” With supply high and prices low, PCS again adjusted its operations in response. It cut its production rates to 58pc of capacity and laid off 18pc of its workforce—1,045 employees—in December 2013, citing price declines and weaker-than-expected demand. PCS produced 7.8mn tonnes of MOP in 2013, up 1mn tonnes from 2012 but down by 500,000 tonnes from 2011.

The Mosaic Company To Acquire ADM's Brazil And Paraguay Fertilizer Distribution Business

PLYMOUTH, Minn., April 15, 2014 /PRNewswire/ -- The Mosaic Company (NYSE: MOS) signed definitive agreements today with Archer Daniels Midland Company (NYSE: ADM) to acquire its fertilizer distribution business in Brazil and Paraguay for $350 million. The purchase price assumes the delivery of $150 million in working capital at closing. This acquisition is expected to significantly accelerate Mosaic's previously announced growth plans in Brazil as well as replace a substantial amount of planned internal investments in that country. Under the terms of the agreement, Mosaic would acquire four blending and warehousing facilities in Brazil, one in Paraguay and additional warehousing and logistics service capabilities. The acquisition of ADM's fertilizer distribution business would increase Mosaic's annual distribution in the region from approximately four million metric tonnes to about six million metric tonnes of crop nutrients. In addition to the acquisition, Mosaic is in process of completing approximately $100 million in projects including expansion of the company's port terminals, plants and production capabilities. "The addition of ADM's fertilizer distribution business in Brazil and Paraguay facilitates two critical strategic priorities for Mosaic. It enhances our global growth strategy and expands our market access," said Mosaic President and Chief Executive Officer James T. Prokopanko. "This acquisition provides a critical distribution platform in one of the world's fastest growing agricultural regions, and it complements our other recent strategic initiatives, including our joint venture in Saudi Arabia, our recent acquisition of CF Industries' phosphate business and our ongoing potash expansion program." "Acquiring ADM's fertilizer distribution business accelerates our existing growth plans in Brazil and provides access to new customers throughout the country and in Paraguay," said Tobias Grasso, Mosaic's Country Manager in Brazil. "We will gain scale and operating efficiencies through this acquisition, as well as a talented group of employees who will join our team." The parties have also negotiated the terms of five-year fertilizer supply agreements providing for Mosaic to supply ADM's fertilizer needs in Brazil and Paraguay. Mosaic will fund the acquisition with cash from operations. The transaction is not expected to impact Mosaic's shareholder distribution plans. The proposed sale will be contingent on customary regulatory approvals. 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. This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, statements about the acquisition and assumption of certain related liabilities of the fertilizer distribution business in Brazil and Paraguay of Archer Daniels Midland Company ("ADM") and the fertilizer supply agreements with ADM; the benefits of the transactions with ADM; other proposed or pending future transactions or strategic plans and other statements about future financial and operating results. Such statements are based upon the current beliefs and expectations of The Mosaic Company's management and are subject to significant risks and uncertainties. These risks and uncertainties include but are not limited to risks and uncertainties arising from difficulties with failure to complete the proposed acquisition with ADM, unexpected delays in completion of such transaction, realization of the benefits of the transactions with ADM, including the risks that the acquired assets may not be integrated successfully or that the cost or capital savings from the transactions may not be fully realized or may take longer to realize than expected; customer defaults; the predictability and volatility of, and customer expectations about, agriculture, fertilizer, raw material, energy and transportation markets that are subject to competitive and other pressures and economic and credit market conditions; the level of inventories in the distribution channels for crop nutrients; changes in foreign currency and exchange rates; international trade risks and other risks associated with Mosaic's international operations; changes in government policy; changes in environmental and other governmental regulation, including greenhouse gas regulation; the effectiveness of the Company's processes for managing its strategic priorities; reduction of Mosaic's available cash and liquidity, and increased leverage, due to its use of cash and/or available debt capacity to fund share repurchases and strategic investments; and other risks and uncertainties reported from time to time in The Mosaic Company's reports filed with the Securities and Exchange Commission. Actual results may differ from those set forth in the forward-looking statements. SOURCE The Mosaic Company Smartlinks | The Mosaic Company | Agriculture - See more at: http://www.noodls.com/view/3FE1648DA055562D96C9D9283F71C00BD761703E?6783xxx1397581609#sthash.INIVOsRD.dpuf

MbAC starting up in Arraias - Tocantins - Brazil

ITAFOS OPERATIONS UPDATE The Company continues to ramp-up operations and expects to achieve commercial production in Q2 2014. While the global phosphate price environment started to show some strength during the last quarter of 2013, MBAC's revenue and average selling price were impacted by the seasonality of Brazil's planting season and higher than customary inventory levels. Q4 is typically a slow period for fertilizer companies in Brazil operating in this industry. Di-ammonium Phosphate ('DAP') prices (fob Morocco) have increased by approximately 20% since bottoming in November 2013. Triple Super Phosphate ('TSP') prices have also seen a strong increase (approximately 32%) since hitting five-year lows in late 2013. The rising prices are expected to have similar impact on SSP prices in Brazil as 2013 Brazilian fertilizer inventories are depleting. The Company believes that SSP prices should fully benefit from the rising global prices as the fertilizing season progresses. Average selling prices for SSP in 2014 are expected to be consistent with the 2013 average selling price. We anticipate that the cost of production for SSP will be consistent with guidance previously disclosed by the Company.

Petrokimia Gresik to Open East Java Phosphoric Acid Plant in Q2

By ID/Rozi Amrozi on 10:24 am Jan 02, 2014 Category Business, Corporate News Tags: fertilizer, Petrokimia Gresik, phosphoric acid Gresik, East Java. Petrokimia Gresik, a sate-run fertilizer company, plans to open a new phosphoric acid plant in East Java in the second quarter of 2014, a company executive said on Tuesday. “The new phosphoric acid plant, which is a joint venture with [Jordan Phosphate Mines], will be able to contribute to an increase in our revenues in 2014,” said Hidayat Nyakman, the company’s president director. Jordan Phosphate Mines (JMPC) is a mining company based in phosphate-rich Jordan. Phosphoric acid is an essential component in many commercial fertilizers. The $200 million plant, which has been under construction since the end of 2010, is expected to produce 200,000 tons of phosphoric acid per year for use in fertilizers on the domestic and foreign markets. Hidayat said the plant would increase the company’s production capacity and end the need to import raw materials to make fertilizers. Each company is to take a 50 percent stake in the joint venture, as per a January 2010 agreement. Petrokimia Gresik also plans to spend $160 million revamping is preexisting plant so that it too can produce 200,000 tons of phosphoric acid per year, and to expand the plant’s industrial compound to include a sulfuric acid plant with a capacity of 600,000 tons per year and a gypsum purification plant with a similar capacity. “The expansion of this phosphoric acid plant will assure a supply of phosphoric acid and therefore save foreign exchange for the state,” Hidayat said. The company said it required 600,000 tons of phosphoric acid to produce 2.8 million tons of NPK fertilizer a year, while its current phosphoric acid facility only produced one third that amount. Nugrohon Purwanto, Petrokimia Gresik’s commercial director, said that the weakening of the Rupiah had significantly impacted the cost of phosphoric acid imports. “With the operation of the phosphoric acid plant that is a joint venture with JPMC, our efforts to save production costs, which will enhance our competitiveness in the free market in the future, can be improved,” Nugroho said. The plant will require some 770,000 tons of phosphate and 200,000 tons of sulfur a year to meet its production goals. The company also plans to complete an upgrade of its water processing installation in Gunung Sari, Surabaya, Hidayat said, increasing its capacity from 720 cubic meters to 3,800 cubic meters per hour.

Hatch's 3D model of the Simplot Phosphates LLC Rock Springs fertilizer manufacturing facility

Jordan and Indonesia agree to phosphoric acid projects

8:38 AM MDT | July 22, 2013 | Natasha Alperowicz from IHS Chemical Week
Jordan Phosphate Mines Co. (JPMC; Amman) has signed memoranda of understanding with two Indonesian firms to build two separate phosphoric acid projects, each designed to produce 200,000 m.t./year. One of the units will be built in Jordan and the other in Indonesia, according to JPMC. The two projects form part of the company’s strategy to guarantee offtake of phosphate rock from its extensive mining operations in Jordan. JPMC operates in three mining areas in the central and southern parts of Jordan: Al Hassa, Al Abiad, and Eshidiya.

Saudi Arabian Mining Company (Ma'aden) : build a phosphoric acid plant worth 3.5bn riyals.

Contract Awarded for build a phosphoric acid plant. The plant will have a production capacity of 1.5mn tonnes. Contract Value: 3.5bn riyals. Contract Period: 2016 Contractor name : HANWHA ENGINEERING & CONSTRUCTION CO.Jacobs Engineering Group Inc. (NYSE:JEC) announced today it was awarded a contract by Saudi Arabian Mining Company (Ma'aden) to provide a bankable feasibility study/front end engineering design (FEED) for its Umm Wu'al Phosphate Project in the Sirhan-Turaif region, the Kingdom of Saudi Arabia.