Category: Commodity

BHP has awarded a significant engineering, procurement, and construction management (EPCM) contract to a joint venture between Fluor Australia Pty Ltd and Hatch Pty Ltd. The A$40 million contract is for the first phase of the proposed expansion of BHP's copper smelter and refinery facilities in South Australia, as the company moves towards a final investment decision on the smelter and refinery expansion, currently anticipated in the first half of FY27. The initial stage focuses on strategic planning and development during the project's study phases. Subsequent stages will cover detailed engineering, procurement, and construction management as the project advances.

Lithium sulphur battery manufacturer Lyten has signed agreements with California Sulphur Company, at the Port of Los Angeles, and a Port of Stockton company to supply US domestically sourced, industrial-grade sulphur to Lyten’s manufacturing facilities in San Jose, CA, San Leandro, CA, and its recently announced Reno, NV, “gigafactory”.

Aurubis AG has reported operating earnings before taxes of euro130 million ($134.8 million) for the first quarter of its fiscal year 2024/25, up around 17% on the figure for the equivalent period of last year (€111 million or $115.1 million). The company’s Custom Smelting & Products (CSP) segment posted €125 million ($129.7 million) in EBT compared with €107 million ($111 million) in the previous year. CSP comprises production facilities for processing copper concentrates as well as for manufacturing and marketing standard and specialty products, such as cathodes, wire rod, continuous cast shapes, strip products, sulphuric acid and iron silicate, via smelters in Hamburg and Pirdop, Bulgaria. The company attributes the higher EBT to higher metal prices, considerably increased sulphuric acid revenues, and robust earnings from copper product sales and lower costs, which more than compensated for a year-over-year decline in treatment and refining charges with lower concentrate throughput.

Tight supply limits availability as China maintains export restrictions.

The Abu Dhabi National Oil Company (ADNOC) has launched a tender for the expansion of offshore gas production at its Satah Al Razboot (SARB) field, part of the Emirate’s huge Ghasha concession. The scope of work will include the engineering, procurement, and construction (EPC) of at least two wellhead platforms with multiple related facilities and the installation of a 24” subsea gas pipeline to new inlet facilities at Das Island. The project will also include brownfield tie-ins at Al Qatia, Bu Sikeen Islands, Das and Zirku and Arzanah Islands.

Philippine Associated Smelting and Refining (PASAR) has put its plant on Leyte Island into care and maintenance to evaluate the operation amid what it termed as increasingly challenging market conditions.

Yara says that it plans to wind down production of phosphate fertilizers and sulphuric acid at two sites in Brazil; Cubatão and Paulínia. The sites are expected to cease production by 3Q 2025, as part of what Yara describes as a strategy to concentrate on more sustainable operations focused on its main activity: the production of nitrogen fertilizers. At Cubatão, the suspension will affect unit 3 and the phosphate plants of unit 2, while units 1 and 2, responsible for the production of nitrogen, in addition to the mixer (unit 5), will continue to operate normally. Yara reported a net loss of $290 million in 4Q 2024, down $536 million from the $246 million profit it made in 4Q 2023. Revenues are down 11% for the year, leading Yara to announce a cost reduction and investment program of $150 million, with the aim of optimising its operations and focusing on strategic areas to ensure long-term sustainability. At the same time, the company has begun renewable ammonia production at Cubatão.

Spetco’s contract with the Kuwait Oil Company (KOC) to install depletion compression systems and sulphur recovery units (SRUs) is said to be awaiting final approval. The $460 million project will upgrade two key facilities in North Kuwait, and Spetco says that it expects project execution will start quickly after final approval. The project involves installing new units at the Early Production Facility 50 (EPF-50) and Jurassic Production Facility 3 (JPF-3) using uses a build-own-operate-transfer (BOOT) contract model. The contract was originally tendered in 2023, but scope changes meant that the deadline has been extended several times.

Maire Group says that its NextChem (Sustainable Technology Solutions) subsidiary has been awarded a three-year contract by Saudi Aramco Total Refining and Petrochemical (SATORP) – a joint venture between Saudi Aramco and TotalEnergies – to provide engineering and technology services related to the sulphur recovery complex of SATORP’s refinery in Jubail, Saudi Arabia. NextChem will provide process and engineering advisory services to enhance performance, support operational troubleshooting, and improve energy efficiency and the carbon footprint of the three units (sulphur recovery unit, amine regeneration unit and sour water stripper) which comprise the sulphur recovery complex. The services will also include recommendations for capital investment opportunities, design enhancements, and technology improvements.

TotalEnergies and its partners Basra Oil Company and QatarEnergy have begun construction works at ArtawiGas25, a processing facility for the associated gas from the Ratawi field, located in the Basra region. The facility, part of the Gas Growth Integrated Project (GGIP), represents an investment of around $250 million and will process 50 million scf/d of gas which would previously have been flared. The gas will supply local power plants, covering the demand of approximately 200,000 households in the Basra region. The GGIP project is a $10 billion project designed to enhance the development of Iraq’s natural resources and improve the country’s electricity supply. It includes a large-scale gas processing plant, with a first phase of 300 million scf/d that will recover gas being flared on three oil fields and supply gas to 1.5 GW of power generation capacity.