Agriflex to supply phosphoric acid to Lithium Australia

  • : Battery materials, Fertilizers, Metals
  • 24/04/16

Australia-based phosphate rock producer Agriflex has agreed to supply high-quality phosphoric acid to Lithium Australia for its lithium-iron phosphate (LFP) or lithium manganese iron phosphate (LMFP) production.

The firms have signed a non-binding initial agreement, which envisages Lithium Australia building a demonstration plant with an estimated capacity of 250 t/yr of LFP or LFMP, potentially in Queensland. The plant will require around 200-300 t/yr of phosphoric acid, Agriflex's parent company Centrex said on 16 April.

Lithium Australia will move on to build a commercial plant with an estimated capacity of around 25,000 t/yr of LFP or LMFP if the demonstration plant is successful and following pre-qualification of cathode powders. The commercial plant will need 20,000-25,000 t/yr of phosphoric acid. No timelines were provided, except that the initial agreement will run for a period of 24 months.

Agriflex will conduct a study to produce high-quality phosphoric acid with low impurity content in Queensland for supply to Lithium Australia.

The two firms are committed to building a battery supply chain domestically in Australia, to provide global battery producers an alternative supply source for LFP and LFMP.


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24/05/20

India's JSW Steel to buy coking coal firm in Mozambique

India's JSW Steel to buy coking coal firm in Mozambique

Singapore, 20 May (Argus) — India's JSW Steel will buy a coking coal company in Mozambique to secure supply of the key steelmaking raw material and shield against any volatility in prices. JSW Steel's board of directors approved the acquisition of coal mining firm Minas de Revuboe (MDR) for about $74mn. The purchase of a 92pc stake in MDR gives JSW access to more than 800mn t of premium hard coking coal reserves in Mozambique, the steel producer said on 17 May. MDR's mine is not yet operational but the company aims to start developing the mine in the 2024-25 fiscal year. "This is not only going to provide us some cushioning with respect to the highly volatile [premium low-volatile (PLV)] index," said JSW Steel's chief executive officer Jayant Acharya. "It also is logistically closer to India, and therefore, will give us an optimised cost." Fluctuations in prices of high-quality seaborne coking coal have been a concern for Indian steelmakers, as they work to ramp up production in anticipation of rising demand from the infrastructure and automobile sectors. The Argus -assessed Australian PLV hard coking coal price crossed $600/t in March 2022, following the start of the Russia-Ukraine conflict. It was at $237/t on 17 May, a decline of $8/t from the start of this month, owing to ample supplies and thin buying interest. JSW Steel's fourth-quarter profit fell by 64pc to 12.99bn rupees ($156mn) because of higher coking coal costs. Crude steel production in the quarter rose by 3pc on the year to 6.79mn t, while sales totalled 6.73mn t, also registering a growth of 3pc from last year. The company also expects capital expenditure at 200bn rupees ($2.4bln) in the 2024-25 fiscal year, as it adds to its steelmaking capacity. JSW Steel is targeting a production capacity of 50mn t/yr by the 2030-31 fiscal year. The company expects steel demand to pick up in the coming year, citing the government's infrastructure push and robust economic growth in India. By Amruta Khandekar Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

India to launch policy to boost critical mineral supply


24/05/20
24/05/20

India to launch policy to boost critical mineral supply

Mumbai, 20 May (Argus) — India is working on a critical mineral policy to boost domestic supplies, and plans to collaborate with resource-rich countries in critical minerals mining and processing. The mines ministry and related government institutes like the Geological Survey of India (GSI) are working on a policy to drive domestic exploration and processing of critical minerals, a source close to the development told Argus . Discussions are currently progressing, the source added without providing details on the timeline. India is looking into all aspects to boost domestic production of critical minerals, the source said. India is also seeking critical mineral supplies from overseas to feed burgeoning demand from the green energy and electric vehicle (EV) industries. The Indian government is in talks with several countries including Chile, Australia, and some African countries, over opportunities for mining and technology collaboration for lithium processing and other critical minerals. Critical minerals like copper, lithium, nickel, cobalt and rare earths are important for the development of clean energy technologies, including wind turbines, solar panels, electric vehicles and battery storage. It is crucial for India, which currently relies heavily on imports of lithium-ion cells from China, Japan and South Korea, to develop a robust battery supply chain to meet its ambitious target of 30pc EV penetration by 2030. India is currently conducting feasibility tests on five projects of lithium and cobalt in Australia , said Ministry of Mines' secretary VL Kantha Rao at Khanij Bidesh India (Kabil)'s office opening ceremony on 11 May. Kabil, a joint venture between state-run Nalco and Hindustan Copper and Mineral Exploration, was formed to explore and produce strategically important minerals overseas. The firm in January signed an agreement with Argentinian state mining company Catamarca Minera y Energetica Sociedad del Estado (Caymen) to explore five lithium brine blocks in the Catamarca province of Argentina. India's mines ministry and Rao held several meetings over the past two months with the Chilean government and Chilean state-owned firms such as Empresa Nacional de Mineria and Codelco on critical minerals opportunities. India has also spoken with deputy minister of mining and heavy industry of Mongolia, Uyanga Bold, on co-operation in the critical mineral sector. By Samil Surendran Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Japanese bank Mizuho boosts support for H2, ammonia


24/05/17
24/05/17

Japanese bank Mizuho boosts support for H2, ammonia

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Trade curbs spur Chinese battery firms to look overseas


24/05/17
24/05/17

Trade curbs spur Chinese battery firms to look overseas

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Sinking crop values weigh on US farmer profits in 2024


24/05/16
24/05/16

Sinking crop values weigh on US farmer profits in 2024

Houston, 16 May (Argus) — The cycle of above-average profits that has defined the US agricultural economy in recent seasons is fraying this year as crop prices slacken against elevated expenses. The domestic agricultural sector is forecast to endure a 24pc drop in net cash income this season — the sharpest year-over-year decline in the last decade — underpinned by a 6pc slump in crop sales revenue and modest growth in projected expenses, according to the US Department of Agriculture's (USDA) latest industry income statement. This retraction, which kicked off in 2023, forced many growers in key agricultural districts this season to augment non-real estate loans, slow debt repayment and restructure existing loans to meet liquidity requirements thanks in part to sliding global grain and oilseed prices. Lenders within the seventh and 10th Federal Reserve districts, which represent farmers across major growing regions, reported stronger loan demand and tightened working capital during the first quarter — signaling deteriorating farm finances. Working capital is measured as the difference between the value of assets that can be easily converted to cash and debt due within the next 12 months. Lower working capital valuation signals the ability to pay down debt could be challenged. Domestic agricultural working capital this year is estimated 17pc lower from 2023 and 6pc lower than the five-year average, according to USDA data. "Conditions in the US farm economy have tightened alongside lower prices for many key products and higher financing costs," the Federal Reserve Bank of Kansas City reported in its quarterly Ag Credit Survey . "Many lenders highlighted growing concerns about deterioration in working capital as a result of low prices, particularly for crop producers." US row-crop growers are expected to endure another season of price deterioration as global markets adjust to supply shocks stemming from the ongoing war in Ukraine that rattled wheat values and key input prices for corn and soybeans. Domestic corn, soybean and wheat farm cash prices are projected to slump for a second consecutive season by 5pc, 11pc and 15pc, respectively, according to the latest projections from the USDA's World Agricultural Supply and Demand (WASDE) report. Corn growers, specifically, face losses this season amid a 4.6mn-acre cut in planted area from last season in tandem with sinking crop values. Margins are estimated -$65.75/acre, based on the latest new-crop contract close and early-season production volume estimates, after benefiting from peak earnings at $242.33/acre in 2022. Corn is a fertilizer-intensive crop, and changes in farmer profitability can erode input prices. Urea, the most widely traded fertilizer globally, is strongly tied to front-month corn futures and domestic barge prices have sunk to levels last seen in January 2021, tracking lower front-month corn futures since the start of the 2023-24 fertilizer season. Fertilizer expenses account for nearly 40pc of annual operating costs for domestic corn growers on a per-acre basis, with seed costs comprising an average 25pc, according to Argus analysis of USDA data. Plant nutrition expenses, though, surged in 2022 and remained above average in 2023 — reflecting historically elevated fertilizer prices during the same period. The USDA forecasts a 15pc dip in fertilizer costs in 2024 for corn growers, providing some reprieve compared with the last two years despite higher seed and various overhead expenses. "Factors like the rising costs of seeds, fertilizers and other inputs as well as more strict environmental regulations, specifically on water usage, have added to the financial and administrative burden for farmers," said Donnie Taylor, Agricultural Retailers Association senior vice-president of membership and corporate relations. By Connor Hyde Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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