Sulphuric Acid -
NEWS
Updated January 5, 2024
2019
Mosaic Fertilizer restarting production at St. James Parish plants after
two-month idling
China copper production rose for 2nd
month in Nov as new capacity ramped up
Planning underway for investing €1.8bn
in copper industry: deputy industry minister
Glencore's Mutanda mine in Congo shuts
down a month early
Chinese smelters need treatment charges
higher than current spot rate
53 KCM employees and 232 pupils hospitalized
in Zambia following sulphur dioxide emission
Brunswick Smelter to Shut by Year End
Mosaic cutting production in St. James
$174-million acid plant up and running at
Trail smelter
Aurubis' Bulgarian plant cuts 9-mo output due
to shutdowns
Freeport Confident of Meeting 2023 Smelter
Target After Securing $3b Loan Commitment
Trafigura takes control of Nyrstar
Five ex-BASF employees charged with
tech theft
Mosaic will close Plant City fertilizer plant
Ascension plant's $40M expansion will create 100 construction
jobs
Freeport to Start Talks With 15 Banks to Finance Unprofitable, but
Politically Important New Smelter
Chemetics® joined Worley at the end of April 2019 as part of the
acquisition of Jacobs’ Energy, Chemicals and Resources line of business
ioneer Ltd Awarded SNC-Lavalin Group the
Engineering and Design Contract for the Sulphur Acid Plant
Chilean state miner Codelco reports copper
production cuts, plunging profits in 2018 PhosAgro to build fertilizer production
facility at Metachem site
Codelco terminates the contract with SNC Lavalin and takes control of
the works in Chuquicamata
Namibia hosts acid conference
Fertiliser leader OCP signs up Outotec for sulphuric acid plant EPC
ACS Group to Build 2 of World’s Largest
Sulfuric Acid Plants in Morocco
Wata Chemicals Opens New Plant
ITT Announces Agreement to Acquire Rheinhütte
Pumpen GroupBrazilian fertilizer firm Heringer restructures,
closes plants
Electrozinc to be Mothballed by mid-2019
India court
clears way for Vedanta Smelter restart
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Mosaic Fertilizer restarting production at St. James Parish plants after
two-month idling
December 10, 2019 - Mosaic Co. is restarting its idled fertilizer
production facilities in St. James Parish and officials hope they will
be fully operational by Monday. Spokeswoman Callie Neslund said
all employees furloughed during the two-month idling returned to work
last week, but many of them are undergoing standard safety training
following the extended break. The company halted production in St.
James Parish on Oct. 1 and furloughed more than 370 employees due to an
oversupply of the agriculture fertilizer that Mosaic makes along the
Mississippi River, company officials said then. Though a handful
of employees remained during the furlough for maintenance, the idling
affected both Mosaic operations in St. James — the Uncle Sam and
Faustina facilities straddling either side of the river. Neslund
said the fall season was not as good as the company hoped, but the
idling achieved a balance of customer demand with the company's excess
inventory. "We hope to be fully operational by the 16th, but in
the interim, all of the employees have returned to full-time
employment," Neslund said. She said the company began the multiday
process of restarting the complex on Thursday and had previously begun
receiving shipments in preparation for the restart. During the
plant idling, furloughed employees received at least 70% of their pay,
plus all key benefits. The slowdown came as the company was
responding to a slow shifting of its massive waste gypsum pile at the
east bank of the Uncle Sam facility near Convent, though company
officials said the plant idling was related to market conditions.
The movement of the waste pile, which is about 185 feet tall and has its
own nighttime warning lights for aircraft, had raised worries early this
year from state and federal regulators concerned about the integrity of
a large lake inside the pile. The lake holds hundreds of millions of
gallons of acidic and radioactive process water. Regulators and
the company now say the risk of a catastrophic failure and release of
the water is minimal. The movement of parts of the pile's north
wall and the earth deep beneath that wall have slowed significantly
after a series of emergency measures. The movement went from more than a
half-inch per day to one-tenth to one-hundredth of an inch per day, on
average, state reports show. A halt in production affects the
company's ability to manage the supply of the process water on site,
company officials have previously said. Rainfall expands that supply
while continued fertilizer production causes the water to evaporate.
Company officials said at the time of the furlough that they had spare
water storage capacity and other efforts underway to reduce process
water levels so they could manage the water during the production halt.
China copper production rose for 2nd
month in Nov as new capacity ramped up
December 6, 2019 - China’s production of
copper cathode rose in November for a second straight month, bolstered
by the ramp-up of newly-commissioned projects such as Guangxi Nanguo,
Yunnan Copper’s phase two in Chifeng and Zijin Mining’s smelter in
Heilongjiang. SMM data showed that 798,800 mt of copper cathode
was produced in China last month, up 2.02% from October and 7.07% from
November 2018. Production in January-November stood at 8.14
million mt, up 2.09% from the same period a year earlier. With the
year drawing to a close, smelters’ rush to fulfill annual production
targets also helped lift overall output in November. There barely were
smelters affected by maintenance last month. Some smelters
continued to grapple with copper anode and scrap supply shortages last
month, but the affected production volume was smaller than the previous
month. Negotiations over 2020 supply of copper concentrate and
blister copper, the major raw materials used by Chinese copper smelters,
were the primary focus for smelters last month. With the settled
benchmark treatment/refining charges sharply down from 2019 and
pessimistic prospects for sulphuric acid, most Chinese smelters are
worried about operations in 2020, especially small and medium-sized,
private smelters and those frustrated by cash flow woes. When it
comes to December, most smelters are maintaining normal production.
There is maintenance scheduled for Guangxi Nanguo this month, while
copper anode and scrap supply tightness remains troubling for some
smelters. SMM expects China’s production of copper cathode to rise
to 807,600 mt in December, with a year-over-year increase of 6.05%.
Production for the whole year is likely to be 8.95 million mt, up 2.43%
from 2018.
Planning underway for investing €1.8bn in copper industry:
deputy industry minister
This comprehensive plan taken in cooper industry of the country
will be completed within the next five years. He made the remarks
on Sun. in the unveiling ceremony of integration plan of information
systems of the National Iranian Copper Industries Company (NICICO) and
added, “sulfuric acid project for producing 610,000 tons of acid,
costing €110 billion, was put into operation in the current Iranian
calendar year (started March 21).” Chief Executive of Iranian
Mines and Mining Industries Development and Renovation Organization
(IMIDRO) said that integration plan of information systems will promote
the decision-making power of the management in this sector. For
his part, Chief Executive of the National Iranian Copper Industries
Company (NICICO) Ardeshir Sa’d Mohammadi said, “implementation of
integration of information systems cause all financial documents to be
done in mechanized form.” Upon operation of this integrated
system, in addition to reduce costs, NICICO has planned to increase
revenue for itself and also provided a new structure for this complex,
he emphasized.
www.en.mehrnews.com
Glencore's Mutanda mine in Congo shuts down a month early
November 26, 2019 - Glencore’s Mutanda mine in
Democratic Republic of Congo has suspended operations prematurely due to
difficulties procuring sulphuric acid, a key input for copper and cobalt
extraction, its Mutanda Mining subsidiary told employees in a letter on
Monday.
The suspension, effective from Monday,
comes more than a month before the world’s biggest cobalt mine was set
to go into care and maintenance. Glencore had announced in August it
would suspend the mine from year-end, for two years.
“Mutanda Mining is forced to halt
extraction and treatment of copper and cobalt earlier than planned due
to difficulties in procuring acid,” the letter from management, dated
Nov. 25 and seen by Reuters on Tuesday, said.
A Glencore spokesman confirmed the
letter’s contents.
Chinese smelters need treatment charges higher than current
spot rate
November 20, 2019 - Two leading Chinese copper smelters need
charges for processing copper concentrate into metal to be higher than
the current spot rate to avoid losing money, as they negotiate with
miners on a benchmark for 2020, company executives said on Wednesday.
Jiangxi Copper Co needs treatment and refining charges (TC/RCs) of
around $75 a tonne and 7.5 cents a pound to avoid losing money, its vice
president of trading Xu Yuanfeng said on Wednesday on the sidelines of
the Asia Copper Conference. Zhai Baojin, Daye Nonferrous Metals Group’s
president, said later to reporters that his company needs TC/RCs to be
at least $72.50 a tonne and 7.25 cents a pound to break even. Smelters
including Jiangxi Copper and Daye are in the midst of negotiations with
miners, running concurrently to the conference this week, to set an
annual TC/RC benchmark for 2020. The TC benchmark is referenced in
miner-smelter contracts worldwide and plays a big role in determining
the profitability of both sides. It is $80.80 a tonne for 2019 but
current spot levels are around $60, pointing to a much lower benchmark
next year. “We hope [the TC] is higher than $75, otherwise we will make
a loss,” Jiangxi Copper’s Xu told reporters, adding that the company was
currently losing money and that prices for sulphuric acid, a byproduct
of copper concentrate smelting, were also low, “which will reduce our
profits and add more pressure.” Miners pay the treatment charges to
smelters to process copper concentrate into refined metal. TC/RC prices
tend to rise when copper concentrate supply is abundant and fall when
the supply tightens. Xu said basically all of Jiangxi Copper’s imported
copper concentrate was sourced on long-term contracts, meaning the
company’s exposure to the spot market is small and underscoring the
importance of a favourable settlement with miners this week. Javier
Targhetta, senior vice president for marketing and sales at miner
Freeport McMoRan Inc, said on Tuesday that he thought a “reasonable”
benchmark for 2020 would be $60. Speaking in a panel session at the
conference, Xu said copper miners and smelters were part of a community
with a “shared destiny” and should work together more to develop more
applications for copper. “Mines should not be willing to see their
partners suffering a loss,” he said. Jiangxi Copper will not be
importing more copper concentrate due to China’s restrictions on scrap
since the company only imports “a few thousand tonnes” of copper scrap
per month, but quotas issued for imports were “not enough”, he told
reporters. China has so far issued import quotas for around 550,000
tonnes of high-grade copper scrap since restrictions were tightened from
July this year.
www.reuters.com/article/asia-copperweek-jiangxi-copper/asia-copper-week-chinese-smelters-need-treatment-charges-higher-than-current-spot-rate-idUSL3N2801DD
53 KCM employees and 232 pupils
hospitalized in Zambia following sulphur dioxide emission
November 15, 2019 - Zambia's environmental regulator said on
Friday that an acid plant belonging to Konkola Copper Mines (KCM) has
been shut following a report of an abnormal discharge of sulphur dioxide
which has affected residents living around the mining area in Chingola
district on the Copperbelt Province. The Zambia Environmental
Management Agency (ZEMA) said the mining firm has shut the acid plant
and that a team of inspectors has been dispatched to investigate the
incident. Ireen Chipili, corporate affairs manager at the regulator
said in a statement that preliminary information availed by the mining
firm indicate that a number of people living around the mining area have
been affected by the emissions. Some people have since been
hospitalized, she added. She further said further regulatory action
will be undertaken in line with the provisions of the country's
environmental laws once investigations have been concluded
Brunswick Smelter to Shut by Year End
November 15, 2019 - About 420 jobs are set to
go by Christmas at Glencore Canada’s Brunswick lead smelter, a
significant employer in New Brunswick, Canada.
The smelter has been uneconomic since the
former Xstrata-owned Brunswick mine closed in 2013.
Zinc and lead assets head Chris
Eskdale said the company had "thoroughly assessed all options" but
ultimately concluded "the smelter is simply not sustainable".
He said the closure came regardless of
the recent labour dispute.
About 280 workers from the Brunswick
smelter in Belledune, members of USW Local 7085, have been locked out of
their jobs by Glencore since April 24. The workers say the Swiss-based
multinational is demanding concessions that include "attacks on the
workers' health and safety standards and union representation".
Glencore said it would provide
pension, severance and outplacement support services for all employees
as part of closure settlements yet to be agreed on. The company would
also seek potential relocation opportunities at its mining and
metallurgical operations in other provinces and countries, which might
be available to Brunswick smelter workers.
The company plans to retain "a small
number" of employees on site for monitoring, water treatment and closure
projects "in the months ahead".
The Brunswick smelter opened in 1966
as part of the Brunswick No.12 development, underpinned by the largest
deposit in the Bathurst base metals camp and was one of the largest
underground zinc mines in the world well into the late 1990s.
The Brunswick Local 7085 website
advised the committee would meet this Friday "to make a game plan" and
would meet the company on Monday morning to discuss the closure.
Mosaic cutting production in St. James
September 17. 2019 - Mosaic Co. is idling its Louisiana phosphates
operations in St. James, cutting production by about 500,000 tons this
year, as imports into the country have pushed down prices. The
move is intended to speed up how fast Mosaic can empty its inventories,
though the company expects “a more balanced global supply-and-demand
picture to emerge by 2020.” Prices of the fertilizer ingredient have
been under pressure since late 2018 as demand remains weak and capacity
expansions in Morocco and Saudi Arabia have increased output and
exports, Reuters reports. “Phosphate prices have declined further
through the summer, with excess imports continuing to enter the U.S. on
top of high channel inventories,” President and CEO Joc O’Rourke said in
a statement. “We expect our move to idle production to tighten supply
and rebalance the market. Mosaic will prioritize shipments to meet key
customer needs through the idling period.” The company will
also initiate $250 million in stock repurchases under its existing share
repurchase authorization, which has $850 million of remaining capacity,
according to the announcement. Mosaic operates its Faustina and
Uncle Sam facilities in St. James Parish. At the Uncle Sam Facility, a
turbo generator harnesses excess heat from sulfuric acid production. The
cogeneration process allows Mosaic to harness “clean and green” energy.
Uncle Sam produces phosphoric acid, which is then shipped across the
river to the company’s Faustina facility, producing ammonia to make MAP,
DAP and other products.
$174-million acid plant up and running
at Trail smelter
September 13, 2019
- After two years of construction valued at $174 million, the No. 2 Acid
Plant is now in service at the Trail smelter. Teck Trail
Operations officially announced the plant’s completion on Thursday,
though the new facility has been fully operational since Q2 (second
quarter), or late spring. “This investment supports our ongoing
focus on sustainability and the long-term viability of our operation,”
Thompson Hickey, General Manager, Trail Operations, said in the Sept. 12
media release. “Using the best available technology, the new plant
will enhance productivity and operational efficiency here at Trail
Operations.” The new structure is a state-of-the-art replica of
the No. 1 Acid Plant, which was completed in 2014. Attributes of
both facilities is “to significantly improve operating reliability and
flexibility, reducing downtime and maintenance costs.” The new
plants replace 1970s technology and are expected to have a lifespan of
over 40 years. Ground broke on the second site in early 2017. Over
the course of the build, the No. 2 Acid Plant created the equivalent of
roughly 160 jobs, with local hires as the majority of contractors.
“Our employees and contractor partners have exemplified safety as a core
value on the project, which was completed with zero lost time injuries,”
said Hickey. Local and provincial leaders were taken on a tour of
the worksite in May 2018, when the build was at the half-way point.
“The No. 2 Acid Plant is the latest major investment to further
strengthen Trail’s position as a world-class metallurgical facility and
an important part of our business,” Shehzad Bharmal, Vice President,
North America Operations, Base Metals, said at the May 22 event.
“Teck, as a company, is committed to the future of Trail Operations.
That is why we have worked hard over the years to strengthen the
operational and environmental performance of every aspect of the
smelter.” The acid plants are part of zinc production processes
and convert SO2 (sulphur dioxide) gas into sulphuric acid.
Sulphuric acid is sent to Warfield Operations for use in fertilizer
production and it is sold in the open market for other industrial
applications. Technology used in the new builds will further
reduce SO2 emissions. Teck Trail Operations houses one of the
world’s largest smelting and refining complexes, which produces refined
zinc and lead and a variety of precious and specialty metals, chemicals,
and fertilizer products. The smelter employs approximately 1,400 people
and has been in operation for over a century.
Aurubis' Bulgarian plant cuts 9-mo
output due to shutdowns
September 3 - Hamburg-based copper producer Aurubis said that the
concentrate throughput of its Bulgarian plant, located in the town of
Pirdop, fell by an annual 19% to 849,000 tonnes in the first nine months
of its 2018/2019 financial year, started October 1, 2018. "Apart
from unplanned shutdowns in Q1 2018/19, a planned maintenance shutdown
carried out at our Pirdop site in May/June 2019 negatively impacted
concentrate throughput," Aurubis said in an interim financial statement
last month. Cathode output at the Pirdop plant decreased by 7%
year-on-year to 157,000 t, while sulfuric acid production dropped 21% to
824,000 t. in the first three quarters of the company's 2018/2019 fiscal
year. In the third quarter of Aurubis' 2018/2019 fiscal
year, concentrate throughput at Pirdop dropped 37% on the year to
217,000 t, cathode output fell 16% to 47,000 t, while sulfuric acid
production was 35% lower at 217,000 t. The average copper price
throughout the first nine months of Aurubis' 2018/2019 financial year
was $6,167 (5,636 euro) per tonne, 10% lower year-on-year.
www.seenews.com
Freeport Confident of Meeting 2023
Smelter Target After Securing $3b Loan Commitment
Freeport Indonesia, the country's largest gold and copper miner,
has secured a $3 billion financing commitment from 11 local and foreign
banks, putting it a step closer to completing a critical smelter by
2023. The company must complete the smelter to fulfill its part of
the deal with the government to extend operations at its Grasberg mine
in Papua until 2041. "Freeport has obtained loan commitments from
11 banks and this is the first loan since the company started
operating," Freeport Indonesia president director Tony Wenas told
BeritaSatu over the weekend. He added that three of the lenders are
domestic banks. Freeport Indonesia is currently building a smelter
in the Java Integrated Industrial and Ports Estate in Gresik, East Java.
It has invested $150 million of its own funds in feasibility studies,
engineering services, environmental impact analyses, rental fees and
soil maturation for site preparation. The miner switched its
contract of work agreement to a special mining business permit last year
after intense negotiations, which saw the Indonesian government becoming
the company's majority owner. The special mining business permit
does not allow Freeport Indonesia to export copper
concentrate and requires it to build a domestic smelter and establish a
mineral refining and processing company within five years of the
permit's issuance. "We believe the construction of the smelter can
be completed on time and that it will be operational by December 2023,"
Tony said.
Freeport Indonesia currently produces about 3 million metric tons
of concentrate annually, 1 million of which is now processed by
Smelting, a joint venture with Japan's Mitsubishi in Gresik.
Smelting president director Hiroshi Kondo said the company processes
about 1.1 million tons of copper concentrate annually, with 100,000 tons
of it coming from Amman Mineral, a mining subsidiary of Medco Energy
Indonesia in West Nusa Tenggara. Smelting produces 291,000 tons of
copper cathode annually, with byproducts including 1.04 million tons of
sulfuric acid, which is used to make fertilizer; 805,000 tons of copper
slag, used in the cement industry; 31,000 tons of gypsum, a building
material; and 2,000 tons of anode sludge; which contains gold, silver
and other precious metals. State-owned Petrokimia Gresik takes
the sulfuric acid from Smelting, while several cement manufacturers
process the copper slag. But Kondo said Smelting only paid out
dividends in the past three years, after 23 years of operations, as
local market absorption is less than expected. "One of our
considerations in smelter investment in Indonesia is the large
Indonesian market. It turns out, most of the cathode must be exported
because of the small absorption capacity in the domestic industry,"
Kondo said. Smelting's cathode is exported to Malaysia, Thailand
and Vietnam, where it competes with cheaper products from other
suppliers. Tony said Freeport expects its new smelter to face
similar challenges. "But this is our commitment," he said. Tony
added that Freeport's smelter plant would produce about 550,000 tons of
copper annually and enough anode sludge to allow a third party to
produce between 30 and 60 tons of gold and 120 tons of silver per year.
Trafigura takes control of Nyrstar
August 1, 2019 -
Trafigura, the Swiss-headquartered commodities trader has taken full
control of miner and sulphuric acid producer Nyrstar. The trading
house officially became majority owner on 31 July, and has reinstated
financing facilities with Nyrstar’s financial creditors, following a
restructuring process. Forty-year mining industry veteran Daniel
Vanin has been appointed CEO of the operating business of Nyrstar with
immediate effect, and a new headquarters will shortly be established at
Nyrstar’s operations in Budel, the Netherlands. An employee
consultation process was completed in July for Zurich-based staff
affected by the news. Three new bond instruments have been
established by Trafigura as part of the restructuring process.
Nyrstar is a major provider of sulphuric acid in Europe and the US.
www.icis.com
Five ex-BASF employees charged with
tech theft
Taoyuan prosecutors yesterday charged five former managers and
engineers of the Taiwanese subsidiary of German chemical giant BASF for
technology theft and passing the information on to a Chinese competitor.
Former senior manager Huang Yi-lin (黃奕霖), 45, and four others were
indicted on charges of breach of trust, along with contravening the
Trade Secrets Act (營業秘密法), the Copyright Act (著作權法) and the Criminal
Code. Huang had allegedly recruited other managers and engineers
to steal proprietary technology for Jiangyin Jianghua Microelectronics
Materials Co in China’s Jiangsu Province, resulting in estimated annual
losses of NT$3.5 billion (US$112.6 million at the current exchange rate)
for BASF, Taoyuan deputy head prosecutor Yang Ting-hung (楊挺宏) said.BASF
Group, headquartered in Germany, set up its Taiwanese subsidiary in
1990, while Jiangyin Jianghua was founded in 2001. Huang, who
headed BASF Taiwan’s global electronics material section in Taoyuan’s
Kuanyin Industrial Park, was contacted by executives of Jiangyin
Jianghua, including its chairman, surnamed Yin (殷), and vice general
manager, surnamed Zhu (朱), who offered him a huge financial reward if he
leaked the German firm’s key technology, Yang said. After agreeing
to the deal, Huang founded Yang Yi International Co in June 2017 and
recruited four colleagues — surnamed Lin (林), 55; Yu (余), 45; Yeh (葉),
45; and Hsu (許), 44. The five allegedly targeted the proprietary
process for making electronic-grade sulfuric acid and other high-quality
chemicals for supply to the semiconductor industry, according to
findings by Taoyuan prosecutors and the Criminal Investigation Bureau
(CIB), adding that Huang had allegedly stolen BASF’s piping and
instrumentation diagrams and other proprietary files.“It was
a case of Chinese industrial espionage focused on new know-how in
production and proprietary technologies at Taiwanese and international
companies,” Yang said. “Huang and his men were enticed by the money to
carry out intellectual property theft for China.” The
investigation found that Huang and his company signed an agreement with
Jiangyin Jianghua, which paid him NT$179 million to assist the Chinese
firm in setting up an electronic chemical manufacturing plant, as well
as helping with marketing and sales. Although Huang was still
working at BASF Taiwan at the time, he collected NT$700,000 as
consulting fees from Jiangyin Jianghua. Huang was reportedly
offered an annual salary of NT$14 million, plus bonuses and stock
options, to work at the Chinese company’s plant, while his four
colleagues were promised annual salaries of between NT$2.8 million and
NT$5.5 million. Surveillance of the men began after a tip-off, and
prosecutors and CIB agents arrested the five on Jan. 3 when they
returned from a trip to China. Yang said key technology data and
BASF company materials were found in the possession of the five
suspects. Investigators said Huang had sent the proprietary files
via e-mails to the Chinese business collaborators from his home
computer. BASF said it is aware that its former employees had been
indicted, adding that the company takes the matter seriously and
supports the investigation. It has been protecting related
information and had filed a criminal complaint, its office in Taiwan
said in a statement. “At BASF, we do not tolerate such kinds of
non-compliant activities,” it said.
Mosaic will close Plant City fertilizer plant
July 4, 2019 - Mosaic has announced that it
will permanently close its Plant City fertilizer plant, which has been
idled since 2017 because of slowing demand for phosphate.However,
some employees will have to remain on site to help decommission one of
the plant’s phosphogypsum stacks, a process company officials expect to
take several years. To get rid of the water on top of it, the company
has been transferring some of it to other facilities every day since
2017, according to spokeswoman Jackie Barron.Such gypsum
stacks, built with slightly radioactive material from phosphate
processing, loom over the Florida landscape, with a pool of acidic water
on top. In 2016, a sinkhole opened beneath a Mosaic gypsum stack in
Mulberry, draining the pool on top into the aquifer and setting off a
major public health scare and public relations problem for the company.The
Plant City plant has two of the stacks, but the first closed in 2004.
Started in 1965 on State Road 39 just south of the Hillsborough-Pasco
county line, the facility once employed 430 people. It could produce 2
million tons of fertilizer a year from the material dug up in the mines
of Central Florida. In its last year, it cranked out only 1.3 million
tons.The plant operated at a higher cost than other Mosaic
facilities in Florida, and when the global demand for fertilizer began
dropping, the company chose to relocate many of its employees and shut
it down temporarily.More than 200 employees were offered new
spots and 131 opted for early retirement while another 98 took severance
packages, Barron said. Now the plant will be closed permanently.“Our
decision to close the Plant City phosphate facility reaffirms our
commitment to low-cost operation,” Mosaic president and CEO Joc O’Rourke
said in a news release sent out by the company.During the
second quarter, Mosaic expects to recognize a notable non-cash charge of
up to $390 million for the permanent closure of the facility, including
asset write-offs and an increase of the asset retirement obligation
liability. Annual cash payments to manage the closure of the facility
over the next five years are expected to be similar to payments incurred
while the plant was idle in 2018.The company news release
mentions the possibility of “repurposing part of the facility for
productive use,” but offers no details about what that might mean.Mosaic
has been working hard to shift its Florida operations southward. Last
year, DeSoto County commissioners voted 4-1 to deny the company a zoning
change on 18,000 acres that would allow it to open a new mine there. But
earlier this year the commissioners voted unanimously to void that vote
and let Mosaic come back and try again in four years.The
Plant City plant was one Florida facility not targeted by the U.S.
Environmental Protection Agency for mishandling hazardous waste. In 2015
Mosaic settled with the EPA for improper storage and disposal of waste
from the production of phosphoric and sulfuric acids, key components of
fertilizers, at Mosaic’s facilities in Bartow, New Wales, Mulberry,
Riverview, South Pierce and Green Bay in Florida, as well as two sites
in Louisiana.The EPA said it had discovered Mosaic employees
were mixing highly corrosive substances from its fertilizer operations
with the solid waste and wastewater from mineral processing, in
violation of federal and state hazardous waste laws.
www.yoursun.com
Ascension plant's $40M expansion will
create 100 construction jobs
June 26, 2019 - Veolia North America said it
will spend $40 million to expand its sulfuric acid regeneration plant in
Ascension Parish. The move will retain all 29 employees at the
Burnside facility, who have an average salary of $83,000 plus benefits.
The work is expected to create about 100 construction jobs. The plant,
located in Darrow, takes spent sulfuric acid and converts it to fresh,
commercial-quality sulfuric acid. Refineries use sulfuric acid as a
catalyst to produce high-octane gasoline. The expansion involves
installing new equipment and upgrading existing equipment, which will
result in a 15 percent increase in sulfuric acid regeneration capacity.
This will allow Veolia to keep up with a growing demand for acid.
To secure the expansion, the state offered Veolia a comprehensive
incentive package that includes a $450,000 modernization tax credit. The
company is expected to use the state’s Industrial Tax Exemption Program.
Freeport to Start Talks With 15 Banks to Finance Unprofitable, but
Politically Important New Smelter
May 28, 2019 - Freeport Indonesia, the country's largest gold and
copper mining company, will start discussions after Idul Fitri next
month with 15 local and foreign banks interested in financing its $2.8
billion unprofitable smelter project, senior executives said. Freeport
has an obligation to build the smelter as part of its deal with the
government to extend its permit for the Grasberg mine in Papua until
2041. "To be honest, I would rather build a 1,000-megawatt power
plant in Papua than build the smelter," Freeport Indonesia president
director Tony Wenas said late on Monday. "Whichever way we
make it, it would be best if we can get zero [percent] as the smelter's
IRR," Tony said, referring to the internal rate of return, an estimation
of the profitability of an investment. Orias Moedak, Freeport
Indonesia's vice president director, said the company would talk with
banks from Japan, France, Britain, the United States and several local
state-owned banks to discuss the financing scheme. "Because the
project itself is unprofitable, we would likely have to opt for
corporate financing instead of project financing," Orias said.
That means loan repayments would come from Freeport's operations, which
would reduce the dividends paid out to shareholders, instead of being
contained within the project. Still, the smelter project is far
from disastrous for Freeport Indonesia, Orias said. "It only means that
our future income would be reduced by the $2.8 billion [we will put into
the smelter]," he said. The company is now burning through cash as
it needs billions of dollars in investment to shift its operations
from open-pit to fully underground. Freeport Indonesia expects its
interest, taxes, depreciation and amortization to dip to $1.3 billion
this year due to the shift, before returning to its usual level of
around $4 billion by 2022. The company estimates that the
government, which now owns 51 percent of Freeport Indonesia, still
stands to pocket about $40 billion over the next 21 years from dividends
taxes and royalties. Indonesia passed a law in 2009 that
requires all mining resources to be processed in the country before
export. This later became a highly contested point in the Freeport
contract extension. Tony said the smelter only adds 5 percent
value to Freeport Indonesia's copper concentrate before export, and that
many smelters abroad can do it at a much lower cost. Illustrating his
point, Tony said Freeport Indonesia's existing copper smelter arm, known
as Smelting, which processes about 1 million tons of concentrate per
year in Gresik, East Java, has only paid a dividend once since starting
operations in 1997. But since the company had agreed to the
government's terms on building a smelter, Orias and Tony both
acknowledged that the project was no longer about the economics.
"This smelter is not a profitable project, but it has become our
commitment and obligation under the law. Until now, we have spent $122
million on smelters, so there is no reason to step back," Tony said,
adding that it also politically important for Indonesia to see the
realization of the smelter. Freeport Indonesia commissioned
Japan's Chiyoda Corporation to construct the smelter. The company has so
used some of the money to acquire and prepare 100 hectares of land in
the JIIPE industrial complex in Gresik. The new smelter will
process 2 million tons of concentrate per year, Tony said. It will
produce copper cathode and several byproducts, including sulfuric acid
for fertilizers. The company has set a target for the new smelter
to be operational by 2023 – just in time for its underground mining
activities to hit full throttle. The smelter will require 2,000
workers during the construction phase, but only 500 once it is
operational.
https://jakartaglobe.id
Chemetics® joined Worley at the end of April 2019 as part of the
acquisition of Jacobs’ Energy, Chemicals and Resources line of business
April 2019 - Through Chemetics’ research and development lab and
custom-built fabrication facility in Canada, global transportation and
logistics management capabilities, specialized project teams and
worldwide network of trusted suppliers, the company delivers technology
and solutions for sulphuric acid and other specialty chemical facilities
globally, from greenfield projects to maintenance and turnarounds.
Over the past 50 years, Chemetics’ full life cycle solutions and
equipment have enabled more than 800 sulfuric acid plants achieve higher
capacities and availability, lower operating costs, decreased emissions
and exceptional safety performance.
ioneer Ltd
Awarded SNC-Lavalin Group the Engineering and Design Contract for the
Sulphur Acid Plant
April 3, 2019 - Emerging lithium-boron supplier, ioneer Ltd wants
to become a responsible and profitable producer of the materials for an
energy efficient future. The company is focused on developing the
globally significant Rhyolite Ridge Lithium-Boron Project in Nevada, USA
which has a large deposit of lithium and boron.In an
announcement made on 3 April 2019, the company announced that it has
awarded SNC-Lavalin Group Inc. (SNC) the engineering and design contract
for the sulphuric acid plant component of the Rhyolite Ridge Definitive
Feasibility Study (DFS). This contract was awarded after a comprehensive
bidding process by the leading sulphuric acid plant providers. In the
contract bidding process, SNC provided an updated budgetary cost
estimate of around US$111 Mn for supply and installation of the
sulphuric acid plant. This estimated cost was around US$60 Mn lesser
than the US$170 Mn estimated in the Preliminary Feasibility Study (PFS)
which was completed in October 2018.Managing Director of
ioneer, Mr. Bernard Rowe, commented that the cost of the sulphuric acid
plant is a key capex driver for the Rhyolite Ridge Project. He further
told that this saving of US$60 Mn is significantly improving the already
robust project economics demonstrated in the PFS.The reduced
capital expenditure estimate for the construction and installation of
the sulphuric acid plant has resulted from a change in contracting
strategy from lump sum turnkey to an engineering and procurement
contract, and a focus on fit for purpose construction and cost
optimisations.SNC-Lavalin is an integrated professional
services and project management company which is having a longstanding
relationship with DuPont Clean Technologies, through MECS® products,
technology and design services for sulphuric acid plants. SNC is going
to incorporate MECS® best-in-class sulphuric acid production technology
from DuPont Clean Technologies (Dupont). It is expected that the acid
plant will produce 3500 tonnes per day of sulphuric acid for the leach
process. The plant will also produce the steam/heat necessary for the
process plant and the excess steam produced from the plant will be used
to generate around 50 megawatts per annum of carbon-free electricity.The
management of the company is very pleased to know that SNC-Lavalin and
Du Pont will be working together with project lead engineers, Fluor, to
further strengthen the world-class team that is focused on progressing
the DFS for the Rhyolite Ridge Lithium-Boron project, and to deliver the
project on budget and on schedule.Today, the company has also
released an Investor presentation in which it has informed about the
company’s recent achievement and its Rhyolite Ridge Lithium-Boron
Project. The company also informed about the Project Feasibility Study
of the Rhyolite Ridge Project which demonstrated strong project
economics including annual revenue of $450 million and annual EBITDA of
$297 million. The definitive feasibility study of the project is on
track to be completed in the third quarter of 2019.
https://kalkinemedia.com
Chilean state miner Codelco reports
copper production cuts, plunging profits in 2018
March 28, 2019 - Chilean state miner Codelco produced slightly less
copper in 2018 than the year before, the company reported on Friday, as
it continued to contend with declining ore grades and rising costs at
its aging mines. Chief Executive Nelson Pizarro said the company
produced 1.678 million tonnes of copper at its own mines in 2018, down
3.3 per cent from the previous year, and a total of 1.806-million
tonnes, including production from its joint ventures at El Abra and
Anglo American South. Codelco, the world’s top copper producer,
reported a 2018 pre-tax profit of US$2.002-billion, down from
US$2.885-billion the previous year as production costs rose 2 per cent
and the price of copper fell from 2017. Codelco said it also took a
one-time deduction for deteriorating assets of nearly $400-million, for
a total drop in pre-tax profits of 44.3 per cent. Pizarro said at
a presentation at Codelco’s Santiago headquarters that 18 labor
negotiations at its mines had also affected the bottom line but that
productivity increases kept costs in line with industry averages.
Pizarro predicted a copper price of US$2.95 per pound for 2019.
Codelco, which produces nearly 10 per cent of the world’s copper, is
investing billions of dollars to convert its Chuquicamata mine, its
second-largest deposit, from an open pit mine into an underground
facility. Pizarro said the Chuquicamata project was approaching
76-per-cent complete. It is a central part of a 10-year, US$39-billion
overhaul of the state miner’s key operations as it seeks to maintain
production despite rapidly falling ore grades at its deposits.
On Monday, Codelco cancelled a major contract with SNC-Lavalin
Group Inc., another potential blow for the Canadian engineering firm as
it battles to move past legal issues tied to corruption allegations.
Codelco terminated a US$260-million contract with Montreal-based
SNC-Lavalin because of what it called a “serious breach of contractual
milestones” by the Canadian firm in the construction of two
sulphuric-acid plants at the giant Chuquicamata copper smelter complex
in Chile’s northern Antofagasta region."Among the
non-compliances are the delay in payments to its subcontractors, delays
in the execution of the project and problems in the quality of the
works, among others," Codelco said in a news release translated from
Spanish. The development is another complication in SNC-Lavalin
chief executive Neil Bruce’s effort to steer a new course for
SNC-Lavalin that involves growing the company to $15-billion in annual
sales and adjusted profit of $5 a share by 2020. In addition to the
Chilean trouble, he’s been stymied in that effort by criminal bribery
and fraud charges against the company related to its past business
dealings in Libya, as well as trouble with its oil and gas business.
Codelco Vice President Alejandro Rivera said the company would
begin applying in May for the environmental permits it needs to begin
exploring for lithium on its Maricunga salt flat holding. Rivera said
Codelco hoped to have results from those explorations by the end of
2020. The company’s lithium projects are off to a slow start.
Codelco has yet to find a partner for either its Maricunga or
Perdernales project.
www.theglobeandmail.com
PhosAgro to build fertilizer production
facility at Metachem site
March 27, 2019 - PhosAgro has launched a
project to build a new, modern phosphate-based fertilizer production
facility and energy plant at its Metachem production site.
Alexander Drozdenko, Governor of the Leningrad region, Viktor Evtukhov,
State Secretary and Deputy Minister of Industry and Trade for Russia,
and Andrey Guryev, CEO of PhosAgro, took part in the presentation of
construction plans for the production and energy complex and the launch
ceremony. Total investment in the project, which PhosAgro will
finance with own and borrowed funds, is estimated at RUB 23 billion. The
project is due to be completed by 2023. The project
includes the construction of a sulfuric acid production unit with a
capacity of 800 ths tpy, a fertilizer production line (including for
water-soluble DAP), liquid ammonia storage, a finished product storage
warehouse, a 25 MW heat energy generation unit and an overhaul of the
extraction phosphoric acid production unit, which will increase output
capacity to 500 ths tpy. Guryev said: “This project is one of the key
elements of PhosAgro’s strategy to 2025. In essence, this is an entire
new factory that will increase PhosAgro’s total phosphate rock
processing capacity by 1 million tpy (currently Metachem processes 300
000 t) as well as increasing the production of phosphate-based
fertilizers that achieve high margins due to Metachem’s logistical
advantages. “For PhosAgro as a whole, fertilizer production growth will
be more than 7%, while phosphate-based fertilizer output will increase
by almost 10%, rising by 630 ths t compared to 2018. Metachem’s output
of commercial products such as fertilizers, as well as phosphoric and
sulfuric acid will increase by 5 times, creating more than 200 new
jobs.” At nameplate capacity, Metachem’s mineral fertilizer production
will exceed 840 000 tpy. This will include the production of MAP, NPK
and water-soluble fertilizers used in high-tech agricultural plants for
drip irrigation, hydroponics and greenhouse production. The investment
project will utilise best available techniques, as well as solutions
from leading Russian and global companies and institutions, including
the Y. V. Samoilov Research Institute for Fertilizers and
Insectofungicides (NIUIF), which is the only of its kind in Russia and
one of the leading agrochemical R&D institutes in Europe. Construction
will be carried out by Russian contractors. The new production
facilities will fully comply with the strictest Russian and European
environmental legislation. After Metachem became part of PhosAgro in
2012, its environmental safety has gradually increased and its impact on
the environment has decreased. Since July 2018, a closed water
circulation system has been in successful operation, collecting and
purifying all industrial storm water, which is then used in production.
The next step is to build a modern chemical water-treatment system. As
part of the investment project, there will be a transition to the use of
environmentally friendly raw materials such as liquid ammonia.
Integration of the fertilizer production facility with a 25 MW power
plant, which utilises high-tech water vapour generation, will
significantly reduce the specific energy consumption per tonne of
product. This will improve the energy efficiency, resource conservation,
environmental impact and productivity of PhosAgro’s Volkhov production
site. Evtukhov said: "The new investment project is fully
consistent with the long-term development strategy for the chemical and
petrochemical industry in Russia, to modernise existing production
facilities and build ones using best available techniques. This project
aims to strengthen food security in Russia and increase the
competitiveness of domestic fertilizer producers in export markets with
high value-added products." Drozdenko said: “PhosAgro is one of the
region’s strategic partners, and its decision to implement another
investment project in the Volkhovskiy district indicates that the
Regional Government has created conditions that are attractive to
investors.
www.worldfertilizer.com
Codelco terminates the contract with SNC Lavalin and takes
control of the works in Chuquicamata
March 25, 2019 - Codelco informed this morning its decision to
terminate the contract with SNC Lavalin early on, due to the serious
breach of contractual milestones that the company has incurred in the
construction of acid plants for the Chuquicamata Smelter, works that are
key to adapt the emissions to DS No. 28. Among the non-compliances, are
the delay in payments to its subcontractors, delays in the execution of
the project and problems in the quality of the works, among others.
Codelco developed six major projects to raise the standard of the
Chuquicamata complex, including the construction of two new acid plants,
which was awarded in November 2016 to the SNC Lavalin company. The
contract for an approximate amount of US$260 million included the
detailed engineering, the supply of equipment and the construction and
assembly of the same (EPC). Through a letter sent to the company
this morning, the Corporation reproached him for the serious and
repeated breach of the obligations imposed by the contract. It should be
noted that Codelco made several attempts to resolve the difficulties
that the project was experiencing, the last of which was last February.
In the near future, Codelco will begin the transfer of the first new
acid plant to the Chuquicamata smelter to begin the empty tests,
adjustments and resolution of conditions that guarantee a safe
operation. Subsequently, with an estimated difference of 15 to 20
days, the operation will be normalized with the entry into operation of
the second sulfuric acid plant and its review process for each part and
adjustments to the set for an adequate operational condition.
Namibia hosts acid conference
March 15, 2019 - Southern African Institute of Mining and
Metallurgy (SAIMM) held its 7th Sulphur and Sulphuric Acid Conference in
Swakopmund. The two-day international event was attended by over 95
representatives and industry leaders from various countries around the
world such as Namibia, Zambia, South Africa, the United Kingdom, China,
Denmark, Netherlands, USA and Canada. The aim of the annual
conference is to expose delegates to issues relating to the generation
and handling of Sulphur, sulphuric acid and Sulphur dioxide reduction
within the metallurgical and other industries, and the conference
provides an opportunity to introduce new technologies and equipment to
producers and consumers of sulphur as well as sulphuric acid and related
products in the field. In addition, the conference enables
participants to share information and experience in the application of
new technologies, collaborate and provide an opportunity for role
players in the industry to discuss common problems and solutions.
In his keynote address Zebra Kasete, President of the Namibian Chamber
of Mines and Dundee Precious Metals Tsumeb Vice President and Managing
Director highlighted the importance of collaboration between the mining
and agricultural sectors, highlighting how sulphuric acid can be a
catalyst for industrial revolution in Namibia.“The mining
industry in Namibia contributes approximately 50 percent of the
country’s export revenue and constitutes 12 percent of Gross Domestic
Product (GDP). The industry-generated revenue of N$29 billion in 2017 of
which approximately N$11.76 billion (41 percent) was spent on goods and
services procured from Namibian based suppliers. The local spend
expenditure demonstrates the industry’s commitment to support local
suppliers,” Kasete said. According to Kasete local procurement is
one avenue where previously historically disadvantaged Namibians can
participate, meaningfully in the country’s economic activities. “I
accept from the out-set that, we miners are not manufactures and we are
not skilled in the same, however, acid producers have a key role to play
in sparking the industrial revolution in Namibia. Sulphuric acid
production in Namibia, has contributed to the upgrade of the country’s
railway line and to increased bulk transportation of chemicals, which
come with additional services as well as skills” he said. The
President of the Namibian Chamber of Mines urged sulphuric acid
producers to change their mindset from believing that their market is
limited to the mining industry. “I would like to urge, sulphuric
acid producers to learn from the diamond industry and consider doing the
same. In particular, I would like to encourage everyone, to create
opportunities for the fertilizer industry because if Namibia starts
producing her own fertilizers, it will increase productivity in
agriculture and reduce dependency on imports” Kasete said. Kasete
called on government to develop policies, which encourage collaboration
within the agriculture and mining sectors. “The increase in
sulphuric acid consumption will contribute to industry revolution as
envisaged in national development policies,” he said.
Fertiliser leader OCP signs up
Outotec for sulphuric acid plant EPC
March 13, 2019 - Outotec has signed a contract with Morocco-based OCP
Group for the delivery of a sulphuric acid plant for fertiliser
production. The approximately €80 million ($90.2 million) order
has been booked into Outotec’s 2019 March quarter order intake, the
company said. Outotec’s delivery includes the engineering,
procurement and construction of the plant, which is based on Outotec’s
sulphur burning system. The new acid plant will incorporate advanced
proprietary technologies such as HEROS heat recovery system as well as a
converter, absorption towers and an acid distribution system that are
made of the Edmeston SX stainless steel alloy. Outotec said: “With
more than 20 acid plants and several mining sites, OCP Group is a global
fertiliser producer and leader in the phosphate industry. The acid plant
will be built in connection with their existing chemical complexes and
support in OCP’s fertiliser production from phosphate rock from their
mining processes as a raw material.” Kalle Härkki, Head of
Outotec’s Metals, Energy & Water business, said: “Outotec’s sulphuric
acid technology has proven to be one of the leading technologies for
decades. We are honoured that OCP has selected our design for their new
plant. “With our leading technologies providing benefits such as
safety, high reliability and enhanced heat recovery we are happy to help
OCP reach their sustainability targets.”
www.im-mining.com
ACS Group to Build 2 of World’s
Largest Sulfuric Acid Plants in Morocco
March 7, 2019 - Morocco’s OCP group and Spain’s
ACS Group have signed two contracts to build two factories in Jorf
Lasfar, 120 kilometers south of Casablanca, which will cost €255
million, approximately MAD 2.8 billion, announced ACS on Tuesday.
The contracts to build the factories “have been awarded by the OCP
(Office Chériffien de Phosphates), following a tender process where
several international engineering companies have taken part,” said ACS,
an international civil and engineering construction company.
Construction on the projects has already begun and will take another two
to three years for each before they are ready to operate. The projects
will be two of the largest sulfuric acid plants in the world. ACS will
build the facilities and implement the processing of two 5,000 tons of
sulfuric acid per day, in addition to implementing basic engineering,
detailed engineering, and equipment and material supply works. The
sulfuric acid will be mainly used in the manufacture of granulated
phosphate fertilizers. The energy the two plants generate will be used
in Jorf Lasfar, “almost eliminating the necessity of resorting to
external electrical power.” The plants will also optimize the production
of phosphate fertilizers to support the agricultural industry in African
mainland countries. Founded in 1997, the Madrid-based ACS Group is
a leading construction company worldwide with projects in many
countries, operating in key services and sectors, including
telecommunications. Meanwhile, Morocco’s OCP Group, which holds 75
percent of the world’s phosphate reserves, is one of the leading
exporters and producers of raw phosphate, phosphate-based fertilizers,
and phosphoric acid in the world.
Wata Chemicals Opens New Plant
March 3, 2019 - Wata Chemicals, a listed company, yesterday opened its
second sulfuric acid plant built at an investment of nearly Tk 30 crore.
Sulfuric acid is mostly used in production of fertiliser, in refining
water and petroleum and in manufacturing other chemicals such as
hydrochloric acid, nitric acid, sulfate salts, synthetic detergents, and
dyes and pigments.
“Almost all the industries need sulfuric acid, so they will benefit from
the new plant,” said Golam Dastagir Gazi, textiles and jute minister,
while inaugurating the plant in Narayanganj. The plant has created
some jobs and will reduce import of the chemical as well, he said,
adding that Bangladesh needs more industrial units to become a developed
country. Md Nazrul Islam, managing director of the company, said
25-30 percent of the total demand for sulfuric acid was met by imports
currently. “With the new plant, our production capacity will
increase by 30,000 tonnes annually from previous 18,000 tonnes. As a
result, the import of the chemical may go down.” The minister said
industrialists would have to look after the local community while
setting up factories, so that their lives are not affected by industrial
pollution. “Nowadays, new technologies are available which can
help reduce industrial pollution. Industrialists are also aware of the
technological development.” Islam says Wata Chemicals is using new
technologies so that adjacent farmlands are not affected. The
company supplies the product to battery and fertiliser factories and the
water purifying units of the government, said Md Ali Ahsan, chief
financial officer of the company. Wata Chemicals' shares fell
nearly 1 percent to Tk 530 on February 27, the last trading day of the
week.
www.thedailystar.net
ITT Announces Agreement to Acquire
Rheinhütte Pumpen Group
February 22, 2019 - ITT Inc. announced today that it has signed an
agreement to acquire Rheinhütte Pumpen Group, a market-leading designer
and manufacturer of centrifugal and axial flow pumps, from Aliaxis Group
S.A. The acquisition aligns with ITT’s focused growth initiatives
in target markets and will enhance the Industrial Process (IP) segment’s
strategy with a complementary portfolio of centrifugal pump technologies
suited to corrosive, abrasive and high-temperature industrial process
environments. The acquisition will bolster IP’s presence in Europe with
an expanded product range as well as enhanced pump engineering,
manufacturing, testing and channel to market capabilities. Rheinhütte
has a 160-year heritage and is regarded as a leading provider of highly
engineered pumps suited for the handling of aggressive media. Rheinhütte
solutions serve specialty applications for the chemical, mining,
renewable energy and refinery processes and include solutions for
sulfuric acid, molten sulfur, fertilizer and chlorine-alkali
electrolysis production among others. “The proposed agreement will
bring together two companies with long legacies of application expertise
across a range of harsh conditions in the industrial process space,”
said ITT CEO and President Luca Savi. “We look forward to leveraging
Rheinhütte’s deep engineering capabilities to deliver better solutions
for our customers and unlock additional growth in key global markets.”
“This agreement reflects our commitment to delivering a comprehensive
value proposition to our customers,” said ITT IP President David
Malinas. “The addition of the Rheinhütte Pumpen brand to our current
portfolio will broaden our worldwide pump presence. We are excited to
join these two teams, leveraging their shared skills and commitment to
delivering excellent products for our customers and partners.”
Rheinhütte, which is headquartered in Wiesbaden, Germany, anticipates
full-year 2018 revenues of approximately $66 million. Rheinhütte has
approximately 430 employees and operates in three main manufacturing
locations. The proposed transaction is expected to be accretive to ITT
earnings in the first full year after closing. The cash consideration of
approximately $91.5 million will be funded from the company’s cash and
revolving credit facility and the final purchase price is subject to
customary net working capital adjustments. The proposed transaction is
expected to close in the second quarter of 2019 and is subject to
customary closing conditions, including appropriate regulatory
approvals.
www.businesswire.com
Brazilian fertilizer firm Heringer
restructures, closes plants
January 31, 2019 -
Brazilian fertilizer company
Fertilizantes Heringer SA has decided to close several of its plants and
distribution centers as part of a restructuring plan to lower its debt
burden, two sources told Reuters on Thursday. Heringer, one of the
largest players in the Brazilian fertilizer market, sent a message to
workers on Thursday in at least 10 installations, including plants and
regional offices, advising them that they faced closure, according to a
e-mail message seen by Reuters. In the message, CEO Dalton Carlos
Heringer said the restructuring became necessary after some creditors
obtained a favorable court decision allowing them to freeze bank
accounts to guarantee debt repayment. Heringer's press office did
not confirm the existence of the memo and said it would return a call
seeking details. Its investor relations office said company executives
were not available for comment as they were in meetings and that the
company might send information to market regulator CVM later on
Thursday. Heringer had 2.9 billion reais ($794.17 million) in debt by
the end of the third quarter, according to its earnings release. That
compares with a market capitalization of 224 million reais, according to
Refinitiv data. A source that deals with fertilizer distributors
in Mato Grosso, in the heartland of Brazil's grain belt, said Heringer
advised some of those distributors regarding what plants and offices
were being closed and which ones would keep operating. Before the
closings, Heringer was operating 16 plants that produce fertilizer from
imported materials and one sulfuric acid plant, besides regional offices
in the most important agricultural areas in Brazil such as center-west
and Matopiba. It had a capacity to move 6.2 million tonnes of
fertilizer per year, used in several types of cultures including
soybeans, corn, cotton, coffee and sugar cane. Heringer shares
lost 5 percent in Sao Paulo trading on Thursday.
www.nasdaq.com
Electrozinc to be Mothballed by mid-2019
January 15, 2019 - The Electrozinc plant at Vladikavkaz in southern
Russia will be mothballed by mid-2019 and is moving all its raw material
and unfinished product inventories to Chelyabinsk Zinc Plant (CZP) and
other Urals Mining Metallurgical (UMMC) production sites.
The move follows December's decison by
UMMC and Electrozinc to put the plant under care and maintenance
indefinitely, after a fire in late October destroyed the electrolytic
workshop, a key link in the production chain. The company previously
said rebuilding the workshop could take at least 6-8 months.
UMMC said it will carry out a
feasibility study before making a decision on the plant's long-term
future.
Since the beginning of December,
Electrozinc has shipped 16,200t of zinc concentrate, 10,500t of saleable
zinc clinker and 1,500t of unfinished product from the Vladikavkaz site
to UMMC's plants in the Urals. It had to temporarily restart the
secondary roaster — used to separate zinc tailings into zinc and
cadmium-bearing oxides and clinker — and the hydro-metallurgical
workshop to bring the material-in-process to the intermediate products
stage, at which point it could be transported to another plant.
The remaining stocks will be shipped
out before the end of the first quarter, Electrozinc said. During the
second quarter, all the plant's facilities will be put under care and
maintenance.
Before the fire on 21 October, the
plant was operating at 77pc of its 95,000 t/yr zinc production capacity.
Cadmium and sulphuric acid production were also running at 77pc of
capacity. Output in 2018 was estimated at 73,500t of zinc, 300t of
cadmium and 124,000 t/yr of sulphuric acid. Electrozinc has no external
contracts, and was supplying all its metals production to UMMC.
Sister company CZP, Russia's largest
zinc producer, which is receiving the leftover feedstock, has more than
double Electrozinc's capacity for producing zinc and cadmium. But it
only has limited scope to offset the loss of Electrozinc production,
without expansion. CZP said it has made no decision to expand output at
this stage.
CZP produced 191,000t of zinc in 2018
and expects to produce 200,000t this year.
The shutdown of Electrozinc means the
group will lose a substantial volume of zinc output, but there has so
far been no impact on the zinc spot market premium. Some market
participants have voiced concern about potential supply tightness in
Russia, given that Electrozinc is one of the country's main producers.
If
CZP has to supply more of its by-product cadmium to the domestic market
to make up for the loss of Electrozinc production, it could have less
available this year to export through tenders.
www.argusmedia.com
Ind
ia court clears way for Vedanta
Smelter restart
January 8, 2019 - India's Supreme Court has cleared the way for
diversified copper producer Vedanta to reopen its Sterlite Copper
smelter in Tamil Nadu, after it refused to stay an order for its closure
by the provincial government. The interim ruling "paves the way
for the Sterlite Copper plant to reopen" and the company will now file
an application to environmental regulator to operate the smelter, a
Vedanta spokesman said. The plant has a production capacity of 1.1mn
t/yr of sulphuric acid. India's environmental court the National
Green Tribunal (NGT) ordered the restart of the smelter on 17 December,
subject to certain environmental protection measures. The Tamil Nadu
government appealed this ruling. Indian sulphuric acid buyers are
upbeat on the restart of the smelter. Some market participants now
anticipate that a April start-up could be realistic. The impact of
the Sterlite Copper smelter's shutdown on the domestic sulphuric acid
market has been significant because of limited supply options in the
region. The operator declared a force majeure on sulphuric acid
deliveries following the closure, which pushed consumers into the
international spot market for not only sulphuric acid but also sulphur
and finished fertilizer products. Indian sulphuric acid imports
reached 1.4mn t in 2018, according to Argus analysis, up by 59pc
from 2017.
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