TORONTO (miningweekly.com) – Brazil-focused project developer MBAC Fertilizer on Monday reported that subsidiary Itafós Mineracão was facing two lawsuits that could derail progress made with the company’s strategic review process. The TSX-listed company said that it was defending itself against claims laid by the Brazilian Labour Public Ministry and the Arraias City Hall against certain of the company’s assets in the country. MBAC was challenging certain rulings rendered thus far and said that protocols for the rehiring of employees would be followed once the strategic review process was complete. The company and its lenders were currently evaluating proposals and defining next steps after it placed its flagship Itafós Arraias operation on care and maintenance earlier this year and offered employees severance packages. The chosen proposal was expected to address MBAC's liquidity shortcomings and the lawsuits, and result in operations at its Itafós Arraias project restarting. MBAC was undertaking a strategic process in collaboration with its senior lenders. Options under consideration included securing a strategic partner, the sale of the company or its assets as well as other potential value-maximising transactions. The first lawsuit related to a combination of a class action and individual claims from former employees for severance payments stemming from the company's cost-cutting restructuring initiative. The total value claimed amounted to about $13.1-million, which included the original outstanding severance amount of about $1.6-million and damages of about $11.5-million. MBAC said that it had already settled 120 individual claims heard to date using a working capital facility of $400 000 obtained from one of its senior lenders for this purpose. Once all individual claims had been settled, MBAC expected to be able to significantly reduce the total amount of penalties and damages that were being claimed. A labour judge of the State of Tocantins had placed certain of the company's fixed and non-fixed assets valued at $2.7-million in escrow to cover payments related to the claims and had ruled that the assets be sold in an auction at the end of the month. These assets, however, were pledged to Itafós' lenders as part of the security package under the company's project loan financing. As a result, the lenders were working to stop the auction, MBAC said. The second lawsuit related to a notification received on June 10 of a tax claim from the Arraias City Hall relating to municipal services taxes (ISS). The claim stated that the ISS associated with all services rendered to Itafós should be remitted to the City of Arraias regardless of whether the services were rendered locally or remotely. The total ISS amount being claimed was about $1.9-million, as well as penalties and interest of $1.6-million for a total of $3.5-million. The company believed that it had remitted ISS correctly in
sexta-feira, 26 de junho de 2015
Brief description of ICL and Yuntianhua JV
Description of the Transaction
ICL will invest up to $500 million in its strategic alliance with Yunnan Yuntianhua which will include a) the creation of a new joint venture company in which ICL will have 50% ownership and which will operate an integrated, world-scale phosphate platform across the value chain and b) a strategic holding in Yunnan Yuntianhua, China's leading producer of phosphate rock and fertilizers, as detailed below:
The joint venture will include the following assets:
- A world-scale phosphate rock mine, currently operated by Yunnan Yuntianhua, that produces approximately 2.5 million tonnes of phosphate annually, and which will become the JV's full backward integration as a competitive phosphate platform.
- An integrated, world-scale phosphate operation with annual capacity of approximately 1,850,000 tonnes of sulfuric acid, 700,000 tonnes of phosphoric acid, 850,000 tonnes of fertilizers, 60,000 tonnes of purified phosphoric acid, 120,000 tonnes of specialty fertilizers and 65,000 tonnes of specialty phosphates for the food and engineered materials markets.
Indian phosphate demand expected high as phosphoric acid settles
27 March 2015 12:26 Source:ICIS News
Focus article by Sylvia Traganida
LONDON (ICIS)--The phosphates market has high expectations for India’s diammonium phosphate (DAP) import demand following the settlement of phosphoric acid contracts for the first half of the year at $805/tonne CFR (cost and freight) between Moroccan fertilizer producer Office Cherifien des Phosphates (OCP) and its Indian customers, sources said on Friday.
There was talk in the market that OCP had already been shipping phosphoric acid to India under provisional prices. Other suppliers are now expected to follow suit.
Market players said that importing DAP is cheaper than producing it in India which is expected to give a boost to the market.
There are expectations that India will import 4.5m tonnes of DAP this year, up 20% from last year, given that a normal monsoon season in June-September is expected.
Moreover, the award of the RCF tender in India is expected to give some price direction to the DAP market, as all offers are for Chinese product and the lowest is at $491.30/tonne CFR.
In China, producers’ selling ideas remain at $470-475/tonne FOB (free on board) in a stand-off with Indian buyers, whose ideas are around $480/tonne CFR.
There are expectations that Chinese producers will focus on exports now that the domestic season is winding down, but it remains to be seen at what price level they will agree with Indian buyers.
West of Suez, the Tampa DAP benchmark remains under pressure, following a Mosaic sale to Central America. There are expectations that US DAP will be offered to India now that the phosphoric acid price has been announced, which could give a boost to the Tampa price.
In the US domestic market, demand remains lacklustre for another week due to the wet weather and is expected to pick up in the coming weeks when sowing will be completed in the Corn Belt.
“DAP demand will stay low until planting activity gets started. Plantings are way behind in the area and normally a lot more corn has been sown by now. Last year they were at 48% finished with corn but as of this week it is only about 1%,” said a US-based trader.
On the supply side, producers are discussing April tonnes with expectations that demand will pick up in the main exporting regions. DAP production rates at Tunisian state-owned producer Groupe Chimique Tunisien (GCT) remain unclear and OCP is heard operating at normal rates.
LONDON (ICIS)--The phosphates market has high expectations for India’s diammonium phosphate (DAP) import demand following the settlement of phosphoric acid contracts for the first half of the year at $805/tonne CFR (cost and freight) between Moroccan fertilizer producer Office Cherifien des Phosphates (OCP) and its Indian customers, sources said on Friday.
There was talk in the market that OCP had already been shipping phosphoric acid to India under provisional prices. Other suppliers are now expected to follow suit.
Market players said that importing DAP is cheaper than producing it in India which is expected to give a boost to the market.
There are expectations that India will import 4.5m tonnes of DAP this year, up 20% from last year, given that a normal monsoon season in June-September is expected.
Moreover, the award of the RCF tender in India is expected to give some price direction to the DAP market, as all offers are for Chinese product and the lowest is at $491.30/tonne CFR.
In China, producers’ selling ideas remain at $470-475/tonne FOB (free on board) in a stand-off with Indian buyers, whose ideas are around $480/tonne CFR.
There are expectations that Chinese producers will focus on exports now that the domestic season is winding down, but it remains to be seen at what price level they will agree with Indian buyers.
West of Suez, the Tampa DAP benchmark remains under pressure, following a Mosaic sale to Central America. There are expectations that US DAP will be offered to India now that the phosphoric acid price has been announced, which could give a boost to the Tampa price.
In the US domestic market, demand remains lacklustre for another week due to the wet weather and is expected to pick up in the coming weeks when sowing will be completed in the Corn Belt.
“DAP demand will stay low until planting activity gets started. Plantings are way behind in the area and normally a lot more corn has been sown by now. Last year they were at 48% finished with corn but as of this week it is only about 1%,” said a US-based trader.
On the supply side, producers are discussing April tonnes with expectations that demand will pick up in the main exporting regions. DAP production rates at Tunisian state-owned producer Groupe Chimique Tunisien (GCT) remain unclear and OCP is heard operating at normal rates.
Mosaic worker burned by phosphoric acid
Gibsonton, Florida -- April, 22, 2015
A worker at the Riverview Mosaic fertilizer plant suffered severe burns over most of his body after he fell into a tank of phosphoric acid early Wednesday morning.
General Manager Robert Fredere says the man was pulled from the tank and the acid was washed off.
Employees called 911 and the worker was taken to Tampa General Hospital. He suffered thermal burns, as the acid was about 175 degrees Fahrenheit. He is currently in critical condition.
Right now, it is unclear what led to the accident. The worker was reportedly helping prepare the tank for maintenance when he fell into the 12x2 tank of acid. There were about 40 other workers around at the time.
A worker at the Riverview Mosaic fertilizer plant suffered severe burns over most of his body after he fell into a tank of phosphoric acid early Wednesday morning.
General Manager Robert Fredere says the man was pulled from the tank and the acid was washed off.
Employees called 911 and the worker was taken to Tampa General Hospital. He suffered thermal burns, as the acid was about 175 degrees Fahrenheit. He is currently in critical condition.
Right now, it is unclear what led to the accident. The worker was reportedly helping prepare the tank for maintenance when he fell into the 12x2 tank of acid. There were about 40 other workers around at the time.
Potash Corp offers to buy Kalium und Salz (K+S)
By
Canadian mining giant Potash Corporation of Saskatchewan offered to take over German rival K+S AG in a deal that, if successful, would create a company capable of dominating a big chunk of the global market for potash.
Potash Corp. offered K+S roughly €7.8 billion ($8.74 billion), or just over €40 a share in cash, according to a person familiar with the matter, an amount that would rank the proposed acquisition as one of the largest mining deals in recent years.
In a statement, K+S said Potash Corp. had informed its board that the Canadian company “may decide, depending on certain conditions, including a due diligence exercise,” to buy the company.
K+S is likely to reject the offer as too low, according to the person familiar with the matter. K+S is developing a mine in the western Canadian province of Saskatchewan and believes Potash Corp.’s offer doesn’t take into account potential synergies and the dominance this would give it in North America, the person familiar with the matter said.
Potash Corp. confirmed that it had made a private proposal to K+S. “There is no certainty that any offer will ultimately be made or as to the terms on which such an offer might be made,” it said in a statement.
Canadian mining giant Potash Corporation of Saskatchewan offered to take over German rival K+S AG in a deal that, if successful, would create a company capable of dominating a big chunk of the global market for potash.
Potash Corp. offered K+S roughly €7.8 billion ($8.74 billion), or just over €40 a share in cash, according to a person familiar with the matter, an amount that would rank the proposed acquisition as one of the largest mining deals in recent years.
In a statement, K+S said Potash Corp. had informed its board that the Canadian company “may decide, depending on certain conditions, including a due diligence exercise,” to buy the company.
K+S is likely to reject the offer as too low, according to the person familiar with the matter. K+S is developing a mine in the western Canadian province of Saskatchewan and believes Potash Corp.’s offer doesn’t take into account potential synergies and the dominance this would give it in North America, the person familiar with the matter said.
Potash Corp. confirmed that it had made a private proposal to K+S. “There is no certainty that any offer will ultimately be made or as to the terms on which such an offer might be made,” it said in a statement.
terça-feira, 9 de junho de 2015
Vale is looking for partners in fertilizers
As Brazil’s Vale SA figures out what to do with its fertilizer business, the mining giant is thought to be testing the waters on a potential sale, according to people familiar with the matter.
In addition to potash mines in South America, the Brazilian mining company owns a big potash development project and slew of fertilizer concessions in Saskatchewan, the world’s biggest producer of potash – a crop nutrient.
“There has been a lot of chatter that Vale is possibly considering selling their fertilizer business. If you are preparing your assets for sale, you want to increase the value of your portfolio,” said Joel Jackson, an analyst with Bank of Montreal.
Vale, the world’s biggest iron ore supplier and a major producer of other metals, is under pressure to sell assets amid a nearly $20-billion (U.S.) expansion of its iron ore complex in Brazil. People familiar with the matter said it has been trying to gauge how much its fertilizer business could fetch.
The unit accounts for about 6 per cent of Vale’s revenue from operations. Asked whether Vale is considering selling its potash assets, a spokeswoman for the company said it previously announced it was looking for strategic partners for potash and phosphate projects.
The outlook for the crop nutrient is murky, with new potash production coming onto the market and the dominant North American and Russian fertilizer players no longer able to influence prices the way they used to. Vale and its rival BHP Billiton Ltd. appear unsure about how to proceed with their respective potash development projects in Saskatchewan; neither has given a clear signal if and when they will go ahead.
Vale is still studying whether it would be economical to build its mine, called Kronau, after the nearby town. BHP has been vague on when it might build its Jansen mine, even though it has committed $3.8-billion to sink shafts into the earth – in preparation for the mine.
If developed, both projects have the potential to upend the potash market, which has long been controlled by three North American producers and, until 2013, a Russian-Belarus potash cartel. BHP’s Jansen would be the biggest potash mine in the world and Vale’s Kronau would be a medium-sized producer. The mines would be an economic boon to Saskatchewan. Though their potash output could further depress prices, which took a hit in 2013 when Russia’s Uralkali killed the Russian-Belarus cartel.
Vale and BHP would be competing with Potash Corp. of Saskatchewan Inc., the world’s biggest fertilizer producer. The Saskatoon-based company operates five of the 10 mines in the province and is expanding one of its mines there.
A Vale spokeswoman said the board of directors has not made a decision on whether to proceed with the mine. But the flurry of activity around Kronau has led some to believe that Vale is getting ready to advance the project, even if it may eventually attract a buyer.
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