Yara renames its erstwhile JV with Oswals as YPHL

Feb 6: 8Norway’s Yara International has renamed Australia’s Burrup Holdings Limited (BHL), its erstwhile joint venture with Pankaj Oswal’s Oswal Group Global (OGG), following complete latter’s complete exit.
8BHL today announced that it has been rechristened as Yara Pilbara Holdings Ltd (YPHL) following completion of acquisition of 65% stake of OGG group from Australian and New Zealand Banking Group (ANZ) by Yara and Apache Corporation.
8ANZ, with which OGG promoters had pledged shares against loans, sold 16% stake to Yara, thereby enabling the latter to hike its stake in BHL to 51% after a legal battle with OGG promoters.
8ANZ separately sold balance 49% shares to Aparche’s subsidiary, Apache Energy Limited (AEL) supplies gas to BBHL’s wholly owned subsidiary Burrup Fertilisers Pty Ltd (BFL), which operates 850,000 tonnes per annum ammonia plant in Western Australia.
8BFL is thus a joint venture between fertilizer producer and feedstock supplier.
 Click our reports section to access releases issued by Yara and Apache on the subject.

RCF seeks tenders for purchase of rock phosphate

Feb 6: 8Rashtriya Chemicals and Fertilisers Limited (RCF) has invited tenders for supply of 40,000 tonnes of rock phosphate with minimum phosphate content of 29%.
8The selected bidder would have to deliver the required quantity in two parcels of 20,000 tonnes each at Mumbai Port. The first parcel would have to be shipped during the first half of March and the second parcel during April 2012.
8The bidders are required to furnish along with the tenders the justification for suitability of offered rock phosphate for production of ammonium nitrophosphate (ANP) nitrophosphate and phosphoric acid at RCF plants.
8The last date for submission of tenders is 15 February 2012.
 Visit our report section to view RCF’s tender documents.

NMDC braces to acquire Australia’s phosphates deposits

Feb 5: 8After acquiring a 50% stake Australia’s Legacy Iron Ore Limited, National Mineral Development Corporation (NMDC) has turned its focus on acquiring a similar stake in rock phosphate deposit in that country.
8NMDC says: “In Australia, we are planning to use Legacy as our arm for further acquisition. The rock phosphate asset which we are following for some time is now under due diligence process. Once it is over we may go ahead with acquisition process.”
8As reported in June 2011, NMDC had signed a memorandum of understanding with Australia’s Minemakers Limited (MML) to acquire 50% equity stake in Australia’s largest phosphates reserves after completion of certain milestones.
8In a release issued today, NMDC affirmed it is “actively pursuing the acquisition of overseas strategic mineral assets with the objective of meeting its own requirements and also towards raw material security for the country’s steel and fertilizer industries.”
8The release adds: “NMDC is in talks with few companies and their projects are being evaluated by the internal team.” It is also in the process of appointing consultants for their comprehensive due diligence.
 Visit our reports section to view NMDC release.

Mosaic to reduce potash production by 20% in H1 2012

Feb 5: 8After scaling down production of DAP, Mosaic Company of the U.S has announced a 20% cutback in potash production.
8According to an analyst, the prospects of more such cutbacks by other foreign suppliers of fertilizers to India are good due to a combination of factors. A major factor is Indian price resistance to opportunistic tendencies of dominant global suppliers of fertilizers. Eurozone crisis-related global concerns in financial and commodity markets have also subdued spot prices of fertilizers in global markets.
8On February 3, Mosaic announced a reduction of up to 20 percent in planned potash production from February through May 2012.
8A company release quoted Mosaic President and Chief Executive Officer Jim Prokopanko as saying “"Cautious dealer sentiment continues to delay purchases and lower near-term demand for potash."
8He added: “Farmer economics remain strong, and we continue to expect an above average application season in North America and record-setting global potash shipments in 2012. While we are confident fundamentals will ultimately prevail, we`ve taken steps that reflect the near-term supply and demand balance for potash." In December-end, Mosaic had stated that it would reduce finished phosphate production by up to 250,000 tonnes through March 31, 2012.
8Around the same period, Russia’s PhosAgro, which is also a major supplier to India, announced its decision to slash production of DAP and MAP fertilizers by 18% in Q1 2012 compared to Q1 2011.
 Click our reports section to view Mosaic release.

FACT projects: An update

Feb 2: The website carries here the following update on projects under planning and implementation by FACT:
 8Urea plant at Udyogamandal - Bids were invited for selection of process licensors. Technical evaluation was completed . Price bids were opened and commercial evaluation completed. Technology selection recommendation on Stamicarbon is under approval. The DPR will be prepared by FEDO based on data available and other inputs received.
 8Feed Stock conversion of Ammonia plant to LNG - Work order has been placed on Haldor Topsoe and engineering specification for all major equipment has been received. The project is being targeted for completion in April-June 2012.
 Information is also carried on the following projects:
 8Capacity enhancement of NP plant at Cochin
 8Revamp of Phosphoric acid plant at Cochin
 8SSP Plant at Udyogamandal
 8New Sulfuric acid plant at Cochin
 8Container Freight Station project with Central Warehousing Corporation
 8Joint Venture of FEDO with IOC
 Click on Details for more   Details

Rashtriya Chemicals and Fertilizers Ltd announces results for the quarter ended December 31, 2011

Feb 2: 8RCF has announced the Unaudited results for the Quarter ended December 31, 2011.
8The Company has posted a net profit of Rs. 539.50 million for the quarter ended December 31, 2011 as compared to Rs. 683.60 million for the quarter ended December 31, 2010. Total Income has increased from Rs. 15469.80 million for the quarter ended December 31, 2010 to Rs. 16343.40 million for the quarter ended December 31, 2011.
 Click our reports section for the results

RCF issues tender for supply of Pot. Di-hydrogen phosphate

Feb 2: 8RCF has issued a tender for the supply of 500 MT of Potassium Di-hydrogen Phosphate( Tech Gr.) as per the specification.
 Click reports section for the tender

DOF notifies SGAIL as producer of beneficiated rock phosphate

Feb 2: 8The Department of Fertilisers (DOF) has approved Shiva Global Agro Industries Ltd. (SGAIL) as a producer of beneficiated indigenous rock phosphate with phosphate content of 31-32% for manufacturing single superphosphate (SSP) under the nutrient-based subsidy scheme.
8DOF has notified this approval on the basis of on-site inspection of beneficiated rock phosphate produced by the company at its plant at Nanded in Maharashtra. The inspection was conducted by PDIL. The approval is effective from the date of commercial production, i.e. 5 October 2011.
8SGAIL (formerly Shiva Fertilizers Ltd) is a leading producer of SSP and NPK complex fertilizers in the Marathwada Region.
 Visit our reports section to access DOF’s communication.

Care reaffirms IFFCO’s debt ratings but lists concerns

Feb 2: 8Credit Analysis & Research Limited (Care Ratings) has reaffirmed existing debt rating of Indian Farmers Fertiliser Cooperative Limited (IFFCO) on a cautionary note.
8Noting IFFCO’s operational efficiency and track record, Care Ratings says: “The ratings are however, constrained by moderate financial risk profile, investment commitments to projects of Joint Venture (JV)/subsidiary companies, and highly regulated nature of the fertiliser industry. Further, the ratings strengths are partially offset by IFFCO’s exposure to foreign currency exchange risk due to the trading portfolio (mainly complex fertilizers).”
8A release issued by the rating major adds: “Going forward, substantial adverse impact on gearing level due to capex plans and the regulatory environment surrounding the fertiliser industry along with currency volatility would remain the key rating sensitivity.”
 Visit our reports section to view Care Rating’s release on IFFCO.

NFL projects: Latest update

Feb 1:  8NFL's revamp operations for its Nangal, Bhatinda and Panipat plants are more or less on schedule. The actual progress is as follows:
 Nangal : 76.15% against 80.31 %(schedule) ;
 Panipat: 78.69% against 85.47% (schedule);
 Bathinda: 78.70% against 85.48% (Schedule)
 8The sore point seems to be the fact that a GSPA is yet to be signed by GAIL pending finalization of source of supply.
 8Meanwhile, the revamp of Vijaipur-I & II units have been delayed. The total urea capacity after completion of the energy saving project of Vijaipur I and capacity augmentation of Vijaipur II is expected to be 6261 MTPD against the existing capacity of 5240 MTPD.
 8There has been a delay in the revamp of the Vijaipur units mainly due to delay in receipt of material at site. Consequently, the shutdowns planned in September 2011 and November' 2011 for hook up jobs in Vijaipur I & II have been reviewed and postponed to March and April 2012 respectively.   Details

GSFC mulls integrated petrochem-fert complex

Feb 1: Gujarat State Fertilizers & Chemicals (GSFC) is studying prospects of setting up a Rs 7000-crore petrochemicals-cum-fertilizers project at Dahej in Gujarat. The project would include 1 million tonnes per annum (tpa) urea plant.
 8In a recent presentaton to investment analysts, the company has dislcosed that it is also considering setting up of Rs 1000-crore project for manufacture of phosphoric acid and or single superphosphate at Sikka.
 8It is also in the process of inviting bids for setting up fourth train of diammonium phosphate/NPK with a capacity of 400,000 tpa at Sikka.
 Visit our reports section to view GSFC’s presentation.

RCF seeks global bids for setting up a sulphuric acid plant

Feb 1: Rashtriya Chemicals and Fertilisers Limited (RCF) has invited global turnkey bids for setting up of a 700 tonnes per day (tpd) sulphuric acid plant at its Thal production complex in Maharashtra.
8The plant, which would use imported elemental sulphur as raw material, would form part of the proposed integrated granulated single super phosphate (SSP) project at the same site. The SSP plant would have a capacity to produce half a million tonnes per annum (tpa) of fertilizer.
8The sulphuric acid plant would have to be commissioned within 27 months of effective date of contract to be awarded on lumspum turnkey basis.
8Last date for submission of offers is 23 February, 2012. RCF has appointed Projects & Development India Ltd. (PDIL) as the consultant for selection of the technology provider-cum-turnkey contractor for the plant.
Visit our reports section to access the tender document.