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Magazine: Sulphur

PPL signs MoU for phosphate expansion

Paradeep Phosphates Ltd (PPL) says that it has signed a memorandum of understanding with the government of Odisha state to invest $440 million over five years to increase its phosphate fertilizer production and export capacity, including port/ jetty and infrastructure development. PPL currently has capacity to produce 400,000 t/a of urea and 2.6 million t/a of finished phosphates, via DAP and NPK plants in Paradeep, Odisha, and Zuarinagar, Goa. Details of the expansion were not announced, but the company previously said in December 2024 that it had agreed to expand phosphoric acid capacity from 500,000 t/a to 700,000 t/a to increase backwards integration of production and reduce dependence on imports.

Market Outlook

• Sulphur prices have been revised higher in the latest forecast after supply from the Middle East was lower than expected in February, and buyers with uncovered demand were forced to chase prices upwards. UAE sulphur exports normally fall at the start of the year due to scheduled maintenance, but sales in February this year were 200,000 tonnes short of what is typical. Prices may climb more than expected as buyers scramble to cover their shorts. If supply is slower to return than currently anticipated, momentum may push prices even higher in the short term.

Foundation stone laid for new acid plant

Jordan’s Prime Minister Jaafar Hassan laid the foundation stone for the second phase of Jordan Phosphate Mines (JPMC) new sulphuric and phosphoric acid plants at Al-Shidiya in a ceremony in mid-February. The Phase II expansion aims to increase the sulphuric acid plant's production capacity from 2,200 t/d to 4,450 t/d (1.5 million t/a). The phase will generate an additional 20 MW of energy per hour, with the potential to export 9 MW. The project will also boost the production capacity of the phosphoric acid plant from 900 t/d to 1,600 t/d (equivalent to 550,000 t/a P2 O5 ). Construction is expected to be completed, and operations begun by September of this year. With the expansion of the industrial complex in Aqaba and future projects involving potash and partnerships in the phosphoric acid industry, JPMC plans to increase its local consumption to 70%, while reducing external exports by 30%.

TCO starts up future growth project

Chevron says that its 50% owned affiliate Tengizchevroil LLP (TCO) has started oil production at its Future Growth Project (FGP) located at the Tengiz oil field in Kazakhstan. FGP is the third processing plant in operation at the Tengiz oil field, which expands sour gas injection capability and is expected to ramp up output to 1 million bbl/d. This milestone follows the completion of the Wellhead Pressure Management Project (WPMP) in 2024, which is designed to optimise the field and processing plants. The FGP expansion aims to increase crude oil production by 260,000 bbl/d at full capacity.

Feasibility study on copper expansion project

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.

LKAB begins work on phosphate demonstrator plant

LKAB has begun construction of its new demonstration plant for processing phosphorus and rare earth elements at Luleå. The facility is the first in a planned industrial park and, says LKAB, marks an important step in the company's ambition to diversify its business with new minerals. The supply of phosphorus for mineral fertilizers is essential for food security in Sweden and the EU, while rare earth elements are critical for the electrification and digitalisation of society, such as the production of permanent magnets for electric vehicles and wind turbines. The $75 million demonstrator plant is planned to become operational in 2026. The aim is to further develop and verify the process for utilizing material flows from iron ore production in Gällivare, where apatite concentrate is produced for further refinement and production of critical minerals in Luleå. Through a stepwise expansion, the operations can then be scaled up with additional processing facilities over time, aiming for full operation during the 2030s. Once fully operational, the industrial park’s production will be approximately seven times Sweden’s needs and 6% of the EU’s demand for phosphorus in agriculture. Currently, there is no mining of rare earth elements in Europe.