Section: CRUSU Industry News

Chile’s environmental regulator SMA has filed a charge against state-owned Codelco, alleging emission violations at its Potrerillos copper smelter in the Atacama region of northern Chile. An audit showed the company had not implemented a monitoring system for sulphur dioxide emissions and other procedures in accordance with environmental standards for the plant, Reuters news agency reported. The SMA labelled the charge as serious, which could lead to a fine of around $4.1 million, and possible revocation of the environmental permit or closure. Codelco had ten days to submit a compliance plan, and 15 days to present a defence.

NextChem has been awarded two contracts to upgrade and expand the capacity of the Heydar Aliyev Oil Refinery (HAOR) industrial complex in Baku by state oil company SOCAR. As part of the contract, NextChem will conduct a technological assessment and deliver a process design package to upgrade the existing sulphur recovery unit (SRU) with oxygen enriched air, a cost-effective and flexible solution for expanding its current sulphur production capacity. Additionally, NextChem will provide the licensing and the process design package based on its proprietary NX SulphuRec TM technology for a new SRU. NX SulphuRec TM is a portfolio of proprietary sulphur recovery technologies, based on the integration of modified Claus and tail gas treatment processes, aimed at reducing the environmental impact of acid and sour gases produced during the refining process.

OCP Group has launched what it calls the Mzinda-Meskala Strategic Programme, aimed at significantly expanding fertilizer production in the country. Initially announced in December 2022, the program is set to enhance production capacity in two key regions: the Mzinda-Safi Corridor and the Meskala-Essaouira Corridor. This initiative is part of OCP’s broader strategy to meet growing global demand for fertilizers while committing to long-term sustainability goals, including achieving carbon neutrality by 2040.

Shell Deutschland has taken a final investment decision (FID) to progress REFHYNE II, a 100 MW renewable proton-exchange membrane (PEM) hydrogen electrolyser at the Shell Energy and Chemicals Park Rheinland in Germany. Using renewable electricity, REFHYNE II is expected to produce up to 44 t/d of renewable hydrogen to partially decarbonise site operations. The electrolyser is scheduled to begin operating in 2027. Renewable hydrogen from REFHYNE II will be used at the Shell Energy and Chemicals Park to produce energy products such as transport fuels with a lower carbon intensity. Using renewable hydrogen at Shell Rheinland will help to further reduce Scope 1 and 2 emissions at the facility. In the longer term, renewable hydrogen from REFHYNE II could be directly supplied to help lower industrial emissions in the region as customer demand evolves.

Veolia says that its subsidiary Veolia North America has signed an agreement for the divestment of Veolia North America Regeneration Services, which includes its sulphuric acid and hydrofluoric acid regeneration activities for refineries, to private equity firm American Industrial Partners for $620 million. These activities represented revenues of around $350 million in 2023. The financial closure of the transaction is expected soon. Veolia’s Sulphuric Acid Regeneration Business includes its sulphuric acid and potassium hydroxide regeneration, as well as sulphur gas recovery, and sulphur-based products production businesses.

Saudi Aramco has sold another tranche of 1.54 billion shares, amounting to 0.64% of the company’s total ownership. The sale, at 27-29 riyals per share, was oversubscribed by a factor of five, making it more popular than the previous IPO, in 2019, which sold 1.5% of the company’s shares for a total of $29.4 billion. Foreign take up of shares was also higher this time, with more than half of sales to foreign investors, compared to 23% for the 2019 sale. However, it remains relatively small in scale compared to Saudi Arabia’s ambitions as part of its Vision 2030 plan to encourage more foreign direct investment and wean the country off its dependence on oil. Aramco is the world’s largest oil company in terms of both daily crude production and market cap, and remains 82% in the hands of the government and 16% held via the country’s sovereign wealth fund, the Public Investment Fund (PIF).

Brazilian phosphate producer Galvani says that it has begun work on its major phosphate expansion in Bahia state, including a new production plant at Ceará, in partnership with Indústrias Nucleares do Brasil (INB). The company aims to reduce Brazil’s northern and northeastern regions’ reliance on imported fertilizers. The first phase includes $133 million of investment, including $76 million for new phosphate mining at Irecê, and $38 million for Luís Eduardo Magalhães factory, also in Bahia. This expansion will take capacity from 600,000 t/a to 1.2 million t/a by 2026. The expansion at Luís Eduardo Industrial Complex includes expansion of sulphuric acid capacity from 165,000 t/a to 250,000 t/a.

Dundee Precious Metals says that it has sold the Tsumeb smelter, including all associated assets and liabilities, to China’s Sinomine Resources Group for $49 million. Sinomine Resources Group is a Chinese company founded in 1999. Its main business and operations cover four segments: EV-lithium material development and utilisation, rare and light minerals (caesium and rubidium) development and application, geo-tech services and mining property development. Dundee Precious Metals will transfer all assets debt-free and cash-free, subject to normal working capital adjustments. The transaction is subject to customary closing conditions, including approval under the Namibia Competition Act and approvals required from Chinese regulatory authorities for overseas investments, and is expected to close in Q3 2024.

Over the last six months, climate and geopolitical events have disrupted seaborne trade. A record drought in Panama and the unprecedented intensity of attacks on commercial ships by the Houthi rebels in the Red Sea are straining the freight market. Almost 150 ships have been targeted along the latter trade route since the first attack was registered to a non-commercial ship last year.

Qatar construction services company UCC Holding has signed a memorandum of understanding with the Kazakh Ministry of Energy for a gas treatment plant at the Kashagan field with a capacity of 6 billion cubic meters as part of the Phase 2B expansion. The memorandum was signed by Minister of Energy Almassadam Satkaliyev and Mohamed Moutaz Al Khayyat, chairman of UCC Holding.