US phosphate producer Mosaic will continue its multi-year strategic priority of increasing MicroEssentials capacity with a $225mn investment at its New Wales, Florida, phosphate plant.
Mosaic has been investing to grow capacity of non-commodity fertilizers like MicroEssentials, Mosaic's single granule enhanced MAP offering. With limited supply of these types of products for the moment, pricing may be less volatile than that of commodity phosphates. In addition, the blends are more profitable for producers and the extra cost to farmers may pay for itself with improved yields.
Beginning around June 2014, Mosaic will commence its most expensive upgrade project at a phosphate facility to date to convert a New Wales, Florida, DAP plant and material handling unit to produce MicroEssentials. The facility will be dedicated to the sulfur and zinc-infused MicroEssentials product, MicroEssentials—SZ (12pc N, 40pc P205, 10pc S, 1pc Zn). Mosaic is targeting May 2016 to resume production.
It is unclear how much of the New Wales' facility's 4.1mn tonnes (t) of DAP, MAP, MicroEssentials, and feed phosphate production will be offline during the near 24 month expected construction period. The facility represents over 40pc of Mosaic's finished phosphate capacity.
The New Wales project closely follows work at the 1.8mn t/year Riverview, Florida, phosphate plant. From November-April the facility underwent a turnaround and upgrade project to increase product flexibility. Mosaic has MicroEssentials production capability at its Bartow, Florida, Riverview, Florida, and Faustina, Louisiana, phosphate plants.
MicroEssentials sales volume rose 18pc in 2013 to 1.4mn t, which included a 32pc year over year increase in the fourth quarter. Over 1mn t were sold in North America. MicroEssentials share of total tons sold across all products increased from 10pc to 12pc.
Mosaic hopes to replicate MicroEssentials' success in the potash market. The company announced at its 2013 October Analyst Day a single granule boron-enhanced potash product, 2205, which has since been brought to market under the name Aspire.
me/dcb
Send comments to feedback@argusmedia.com
If you would like to review other ArgusMedia.com content options, request more information about Argus' energy news, data and analysis services.
Copyright © 2014 Argus Media Ltd - www.ArgusMedia.com - All rights reserved.
