Magazine: Sulphur

The progressive closure of smelter capacity in Australia poses potential problems for acid consumers across the country.

Saipem has won a front-end engineering design (FEED) contract from Sonatrach for an integrated phosphate fertilizer project in Algeria. The contract was awarded through a dual competitive process, enabling the design work to be conducted by both Saipem and a competitor company. Sonatrach will assess and compare the two FEED options from both parties, select the best technical and economic design, and then proceed with the direct award of an engineering, procurement and construction (EPC) contract to execute the project.

Kazakhstan Zinc (KazZinc) is progressing with plans to reduce sulphur dioxide emissions from its Ust-Kamenogorsk site following an environmental audit in December 2024 as a result of smogs caused fugitive emissions which forced residents to stay indoors. The site has reduced emissions from 69,000 t/a in 2011 to 15,000 t/a, but plans to invest $210 million in in new technologies, including sulphur dioxide recovery systems and upgraded filters for solid particle capture. The key measure is the modernisation of gas purification units which is expected to reduce SO2 emissions by 2,200 t/a by 2026. Another important initiative is the construction of the “Hydropolimet” workshop at the KazZinc Ridder metallurgical complex, which aims to reduce sulphur dioxide emissions by 714 t/a.

• Global sulphur prices are expected to experience decreases over the next few weeks. Buyers in Asia report that they are covered for contracted supply throughout July, and domestic prices in China are likely to decrease further, putting downward pressure on sulphur prices.

OCP Nutricrops has received a certification that its customised phosphate fertilizers, developed specifically for the European market, meet the EU’s stringent low cadmium content requirements. The certified fertilizers contain less than 20 milligrams of cadmium per kilogram of phosphorus pentoxide (P2 O5 ), far below the European Union’s regulatory ceiling of 60 mg/kg. OCP Nutricrops says that it plans to expand this low-cadmium benchmark across all its fertilizer products worldwide by the end of 2025. Reducing cadmium in agricultural fertilizers is considered a public health priority across Europe. This initiative is closely aligned with EU goals to mitigate food-related health risks and safeguard ecosystems from harmful contaminants.

S&P has raised its 10-year production outlook for the Canadian oil sands. The latest forecast expects oil sands production to reach a record annual average production of 3.5 million bbl/d in 2025 (5% higher than 2024) and exceed 3.9 million bbl/d by 2030; half a million barrels per day higher than 2024. The 2030 projection is 100,000 bbl/d (or nearly 3%) higher than the previous outlook. Despite a lower oil price environment, the analysis attributes the increased projection to favourable economics, as producers continue to focus on maximising existing assets through investments in optimisation and efficiency. While large up-front, out-of-pocket expenditures over multiple years are required to bring online new oil sands projects, once completed, projects enjoy relatively low breakeven prices.

Phosphate prices have been at high levels for a couple of years now, and talk at the recent International Fertilizer Association (IFA) meeting in Monaco was that it was not only continuing to support higher sulphur prices in spite of oversupply in the sulphur market, but that there seemed to be no prospect of it falling in the short term.

The mid-year negotiations between Antofagasta (AMSA) and Chinese smelters have concluded with a historic settlement of $0/0¢. While unprecedented, the outcome is not surprising, as it lands slightly above the midpoint of the believed negotiating range, from -$15/-1.5¢ proposed by Antofagasta +$10/1.0¢ from the Chinese smelters. Moreover, this result aligns with market participants' rumours circulating prior to the agreement. Separately, rumours suggest Q3 contract negotiations between one top miner and Chinese smelters concluded at levels ranging from -$25/-2.5¢ to (+)$5/0.5¢.

Ballance Agri-Nutrients, the New Zealand farmer and grower co-operative, says that it has entered into consultation on a proposal to cease manufacturing of sulphuric acid and single super phosphate (SSP) at its Mount Maunganui site. The proposals envisage net job losses of 62 roles, but the intention is for the co-operative to remain onsite utilising the proximity to the port for nutrient storage and distribution, and for its national support office. Ballance would continue to manufacture phosphates at its Awarua facility in Invercargill and urea at its Kapuni facility in Taranaki. Ballance CEO Kelvin Wickham says this proposal is part of a wider process the organisation has been going through over the past year to get ahead of changes in the sector and identify future opportunities to support New Zealand farmers and growers. “In the coming years, we expect to see an increased range of products and services that more efficiently and effectively deliver essential nutrients for farmers and growers, which will result in reduced overall demand for single super phosphate from historical peak volumes,” he said. “The number of existing facilities currently making this product in New Zealand means there is an overcapacity of supply. Our current facilities at Mount Maunganui also require substantial investment to keep them operating reliably and will face increasing regulatory constraints to be able to operate heavy manufacturing into the future.”

The Egyptian Mineral Resources and Mining Industries Authority has signed a memorandum of understanding (MoU) with El Sewedy Capital Investments to establish a partnership for the exploration, exploitation, and production of phosphate rock in the El-Sebaeya region of the Nile valley, with downstream beneficiation and a feasibility study for establishing a factory to produce phosphate fertilizers.