Indonesia: Gresik to Open East Java Phosphoric Acid Plant in 2nd Quarter

State-run fertilizer company Petrokimia Gresik plans to open a 200,000 tpa phosphoric acid plant in East Java in the second quarter of the current year.

Construction began in 2010 and the output will be shared in two equal parts by Gresik and by the Jordan Phosphate Mines (JOPH). The plant will have a nameplate capacity of 0.2 million tonnes phosphoric acid per year, 0.8 million tonnes sulphuric acid per year, and 1 million NPK fertilizer per year. The factory will need yearly some 150,000 tonnes of ammonia, 800,000 tonnes of phosphate rock (imported from Jordan), and 270,000 tonnes of sulphur.

Indonesia, the largest economy in Southeast Asia, consumes some 50,000 tpa of fertilizer nutrients. They are the third largest world producer of paddy rice, following China and India.

Jordan Phosphate Mines Company operates 3 mining facilities in Jordan and a chemical manufacturing complex in Aqaba and they reported sales of USD 1.08 billion for the year ending December of 2012. JPMC produces more than 7 million tonnes of phosphate rock annually, making Jordan the sixth country worldwide in terms of production and the second largest country in terms of export.

Vietnam: Israel Chemicals Ltd and Duc Giang to mine phosphate in Bao Thang

Israel’s ICL have signed last September a MOU (Memorandum of Understanding) with the privately owned Vietnamese company Duc Giang, a manufacturer of thermal phosphoric acid (P4). Their aim is phosphate mining and beneficiation in the Bao Thang province in Vietnam. Israel Chemicals was seriously shaken this year after Potash Corp. scrapped a proposed takeover in April and as Uralkali said July 30 it would end the Belarusian joint venture, raising concern of a price war on the potash markets. Last year, ICL had his third consecutive year of growth, with US$7.22 billion in sales. To put this figure in perspective, we can compare it with the US$1.33 billion sales of the Saudi Arabian Fertilizer Company for the year ending December of 2012.

Morocco: OCP plans expansion

Casablanca-based OCP (Office Cherifien des Phosphates), the largest phosphate exporter, has currently a market share of 16% of the global demand for phosphate-based fertilizers and they are planning to increase it to 40% by 2020. At the beginning of the current decade, the world demand was approximately 39 million tones P2O5 and it is forecasted to increase to about 45-48 million tones in 2020. The state-owned OCP plans to triple their production capacity. Currently they have 150 clients in five continents. To meet their production goals, the OCP plans to oversee the construction of four new mines in Khouribga and Benguérir, expected to provide an additional capacity of 20m tonnes of phosphate rock per year. Work is also underway in expanding their logistic capacities and developing new industrial infrastructure at the phosphate hub of Jorf Lasfar, including phosphate washing and enrichment plants.

Phosphate Snapshot

Most of the phosphate output is used for fertilizer. Phosphorus plays a major energizer role of plant production, it is crucial to photosynthesis and reproduction and an aid to other yield-developing processes. Different crops require different quantities of phosphate fertilizer, for example a maize crop yielding 6–9 tonnes of grain per hectare requires some 31–50 kg of phosphate fertilizer to be applied, soybeans requires about 20–25 kg per hectare. Most natural and agricultural soils are phosphorus deficient.

Other important phosphate activities are the manufacture of feed products and industrial applications like detergents and cleaners, food and beverages, metal finishing, water treatment and toothpaste.

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Phosphate fertilizer consumption is driven by the increasing needs of agricultural growth, which has to feed a global population which has increased by 130% from 1960 to 2011, the decreasing amount of available land, the growing need to produce animal feed, and the growing share of biofuels in the crops output. World consumption of P2O5 contained in fertilizers was projected to grow at a rate of 2-3% per year during the next 5 years, with the largest increases expected in Asia and South America.

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China is the largest consumer and producer of phosphate fertilizers, it is the main factor shaping the phosphate market. India is the second global consumer. The Chinese are also the largest consumer of feed phosphates, accounting for 31 percent of global consumption. The USA and Brazil consume 9 percent and 12 percent of global feed phosphate respectively.

The global consumption of phosphate fertilizers was estimated to have been in 2012 of some 40.7 million tonnes P2O5, slightly less than the 41.3 millions consumed in 2011. This was mainly a result of lesser demand of the Asian markets, as consequence of different factors, among them the negative effect on the Indian farmer economics of the review of the subsidy system.

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In relation to the industrial phosphates, China is the world’s largest producer, accounting for more than half of the global capacity.

 

Estimated 2012 Phosphate Rock Capacity

(Total: about 200 million tonnes rock)

 

Rock Cap

PAC Cap

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Global phosphate fertilizer (MAP/DAP/TSP) sales volume in 2011 totalled 25.3 million tonnes product (up 1.0% year-on-year). China remained the world’s largest exporter of DAP in 2012 and accounted for a quarter of the global market.

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Saudi Arabia: Ma’aden, Mosaic, Sabic Plan a USD7 Billion Phosphate Venture

Joint stock company Saudi Arabian Mining Co. (MAADEN), Plymouth, Minnesota-based Mosaic Co. (MOS) and Saudi Basic Industries Corp. (SABIC) agreed to form a seven billion dollars joint venture to mine phosphate rock and process it into fertilizer. Ma’aden, will hold a 60 percent stake in the venture and Mosaic, the world’s largest producer of phosphate fertilizers, will have a 25 percent interest, and Sabic 15 percent.

maadenThe Wa’ad Al Shammal Phosphate Project will be built at Wa’ad Al Shammal Minerals Industrial City in northern Saudi Arabia and the processing facilities at Ras Al Khair Minerals Industrial City on the east coast will be expanded. The two locations will be linked by an existing railway. The project will have a capacity of about 3.5 million tonnes a year and start in the late 2016.

Mosaic currently mines phosrock in Florida, where it’s operating at maximum capacity. The company will invest about one billion dollars in the Saudi project, funded over four years starting this year, and market about 25 percent of the output. The joint venture partners are developing plans for a local research and development facility which will encourage the study and development of phosphate products and processes.

Ma’aden was established to facilitate the development of Saudi Arabia’s non-petroleum mineral resources and to diversify the Kingdom’s economy away from the petroleum and petrochemical sectors. The Sabic-Maaden’s venture has a production capacity of about three million tonnes per year of DAP, the fertilizer that dominates the phosphate trade. Production at the new facilities is expected to commence in late 2016 with a total production capacity of approximately 16 million tonnes per year. Ma’aden is planning downstream production of phosphoric and sulphuric acid, DCP (dicalcium phosphate) and MCP (monocalcium phosphate) used in manufacturing animal feed, PPA (pure phosphoric acid) used in food industries, and STPP (sodium tripolyphosphate) used in manufacturing detergents and other industrial purposes.

After many years of negotiations Saudi Arabia acceded to the WTO in December 2005 and with a GDP (purchasing power parity) of over 740 billion dollars it ranks as the 22nd largest world economy.

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Large phosphate project in Togo

In West Africa, the Togolese government launched on 2012 a tender searching for strategic partners to develop a 2 billion tonnes carbonated phosphate layer and fertilizer plant, 25km from the beach line and in adjacent to an existing operating phosphate project of its ownership.

ImageElenilto, one of the leading African mining developers, was selected by the government of Togo as one of the three short listed companies for the development. The company is planning to recover in the 1st stage 5 million tons annually marketable phosphate rock which can ramp up to 10 million tons annually (the concentrated product is 31.5% P2O5). The major part of the marketable rock will be used to produce and export phosphoric acid, and fertilizers as: DAP, MAP, GTSP and further products. The project is including the improvement and construction of wharf, power plant and transportation for the phosphate and fertilizers. Elenilto is developing offshore and onshore oil blocks, iron ore, tantalum, coal and other mineral large scale projects in eight countries in Africa and Europe.

Elenilto joined to the project the Chinese giant company, Wengfu Group, which is one of the biggest Chinese phosphate and fertilizer production companies with worldwide reputation and with many years of global operations in phosphates mining and fertilizer products production using high end technology. Wengfu is entering to the project as equity partner that will invest 40% of the required investments and will provide the management and professional services to the partnership jointly with Elenilto. Wengfu is the world’s sixth largest granulated fertilizer producer. The development of the project will be done in stages and within few years it is expected to begin production. The total investment in the project is estimated to be over 1 billion US$.

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Phosphate Fertilizers Snapshot

Phosphorus plays a major energizer role of plant production, it is crucial to photosynthesis and reproduction and an aid to other yield-developing processes. Different crops require different quantities of phosphate fertilizer, for example a maize crop yielding 6–9 tonnes of grain per hectare requires some 31–50 kg of phosphate fertilizer to be applied, soybean requires about 20–25 kg per hectare.

Phosphate fertilizer consumption is driven by the increasing needs of agricultural growth, which has to feed a global population which has increased by 130% from 1960 to 2011, the decreasing amount of available land, the growing need to produce animal feed, and the growing share of biofuels in the crops output. World consumption of P2O5 contained in fertilizers was projected to grow at a rate of 2.5% per year during the next 5 years, with the largest increases in Asia and South America.

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China is the largest consumer and producer of phosphate fertilizers, it is the main factor shaping the phosphate market.

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Global phosphate fertilizer (MAP/DAP/TSP) sales volume in 2011 totalled 25.3 million tonnes product (up 1.0% year-on-year).

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Mozambique: Vale studies exploiting phosphate deposits

The viability study ordered by the Brazilian mining giant Vale on exploiting the phosphate deposits in Monapo district, in the northern Mozambican province of Nampula, is nearing conclusion, and will soon be in a fit state to present to the Mozambican government. The phosphate project involves investment of 40 million US dollars. 20 million dollars has already been spent on drilling, laboratory tests, pre-viability and environmental studies, and public consultation. Mozambique, one of the world’s poorest countries, is located in Southeastern Africa, bordering the Mozambique Channel, between South Africa and Tanzania.

The mining area, 130 kilometres from Nampula city, is believed to contain 42 million tonnes of phosphates. The mining concession has been granted to Vale for 30 years.

The Vale project includes using the phosphate in a fertilizer factory to be built in the coastal district of Nacala-a-Velha.

According to the Agencia de Informacao de Mocambique, this is also where Vale is building a new coal terminal to handle exports of the coal mined by Vale in the Moatize coal basin, in the western province of Tete. These exports also require a 912 kilometre railway from Moatize to Nacala-a-Velha. Two stretches of this line at either end will be entirely new, while the rest depends on upgrading the existing Mozambican and Malawian lines.

Tunisia: TIFERT is Expected to Begin Soon Exports

The Tunisian Indian Fertilisers Company Limited’s (TIFERT’s) expects that commercial shipments should start by September from their plant located in La Skhira, Tunisia.

The plant which was originally expected to be commissioned by the first quarter of 2011 got delayed mainly due to the social-political shake-up in Tunisia last year. The delay caused a loss of some USD 30 million.

TIFERT is a joint venture of India’s Gujarat State Fertilizers & Chemicals (GSFC), the Groupe Chimique Tunisien (GCT), and the Compagnie des Phosphates de Gafsa (CPG), both Tunisian companies and Coromandel Fertilisers Ltd (CFL, which belongs to the Murugappa Group). The joint venture company, Tunisian Indian Fertilizers (TIFERT) is planned to produce 360,000 tonnes P2O5 of phosphoric acid per annum and the production will be divided 50% between CFL and GSFC. This will help GSFC, one of India’s West Coast largest fertilizer makers, to run their DAP plant at full capacity.

The phosphate industry accounts for more than 2.6% of GDP in Tunisia and phosphate exports in Tunisia represented 7% of the USD 9.1 billion total Tunisian exports in 2004. Tunisian main phosphate mines are located in the Qafsah area to the south.

The U.S. Geological Survey estimates Tunisian phosphate rock reserves in 100 million tonnes. Tunisia is the fifth global rock producer (after China, USA, Morocco and Russia) and most of the output is used domestically for downstream manufacturing.

Congo, D.R.: Minbos Resources Targets Development of 2 Million tpa Phosphate Project at Kanzi

With a 42% increase in high grade resources to 44 million tonnes at 21.4% phosphorus, exploration upside and consolidated ownership, Minbos Resources is now targeting the development of the Kanzi phosphate project, in the far western Congo, into a 2 million tonnes per annum operation. The Kanzi high grade orebody is ideally located near to road infrastructure and 35 km of the Port of Boma.

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