Sulphuric Acid News

SPAIN

INEOS completes sale of its Sulphur Chemicals business

INEOS Enterprises has announced the completion of the sale of its Sulphur Chemicals business to International Chemical Investors Group, for an undisclosed sum. INEOS Sulphur Chemicals business is Spain’s largest dedicated manufacturer of sulphuric acid and oleum, serving clients in both agriculture and chemical intermediates via its 400,000 t/a plant in Bilbao. The business will become part of WeylChem’s advanced intermediates and reagents portfolio, which includes an existing sulphuric acid and oleum plant located in Lamotte, northern France. WeylChem is wholly owned by the International Chemical Investors Group (ICIG).

“I am very pleased to have completed the sale of the INEOS Sulphur Chemicals business, which now becomes part of a strategic business unit within International Chemical Investors Group,” said Ashley Reed CEO INEOS Enterprises. “The business is an attractive addition to WeylChem’s advanced intermediates and reagents portfolio that will help secure future development and growth, to meet customer needs in Europe.”

Dr Uwe Brunk CEO WeylChem Group of Companies states “This acquisition underlines our commitment to bolstering our position as a strategic partner in advanced intermediates and reagents. INEOS Sulphur Chemicals and our French operations at WeylChem Lamotte complement each other perfectly. This combined business will be an agile, customer-focused player with superior services and supply certainty provided to demanding customers across Europe.”

INDONESIA

Metso Outotec to license copper smelter, acid plant

Metso Outotec says that it has signed a major engineering and technology contract as well as licence agreements for the delivery of a copper smelter complex for PT Freeport Indonesia at Manyar near Gresik, East Java. Earlier in July a $2.7 billion engineering, procurement and construction contract was signed with Chiyoda’s Indonesian subsidiary. Metso Outotec says that it will receive e360 million ($424 million) for its work on the smelter, which is based on licensed flash smelting, flash converting and Lurec® technology. It includes the design and supply of key process equipment and process control systems for the main areas of the smelter complex, the copper electrolytic refinery, the gas cleaning and sulphuric acid plants, slag concentrator and effluent treatment plant. Metso Outotec had previously conducted a front end engineering design study for the smelter. The smelter will handle up to 2.0 million t/a of copper concentrate, mainly from Freeport’s huge Grasberg mine, making it the largest copper processing site in the world, according to PT Freeport. Commissioning is due for 2024.

Freeport is pressing ahead with the smelter on its own after negotiations about a joint venture with Chinese steel and nickel company Tsingshan Holding broke down earlier in the year. Freeport Indonesia will finance the smelter project by debt which, according to the shareholders agreement, will be shared 51% by Indonesian state-owned mining firm Inalum and 49% by Freeport-McMoRan.

Pekka Vauramo, president and CEO of Metso Outotec, said: “Our joint efforts with Freeport Indonesia and Chiyoda will set a new standard for the copper smelter industry in fulfilling the strictest international environmental standards and efficiency requirements. We are very happy to work together to implement this game changing copper smelter.”

WORLD

Price hike for sulphuric acid catalysts

Haldor Topsoe has announced an increase of prices for its VK sulphuric acid catalysts by e0.25 per litre. The company says that the increase has been driven by a “substantial increase” in the price of vanadium, which is a key raw material for sulphuric acid catalyst manufacture. DuPont Clean Technologies has likewise announced a global price increase of $0.30/litre for its MECS® sulphuric acid catalyst products. Both price rises were effective immediately from their announcement in early August.

GERMANY

Acid plant up and running

Fibre manufacturer Lenzing Group says that it has successfully completed and commissioned of an air purification and sulphur recovery plant at its Lenzing facility. The company invested e40 million in this project since construction began in 2019. The facility takes H2 S-rich CS2 exhaust gases from the viscose manufacturing process and converts it to SO2 and then sulphuric acid. The company says that it will allow carbon dioxide emissions from the site to be reduced by 40,000 t/a and will also make the group more self-sufficient in securing vital raw materials for processing, which will bolster the site’s competitive standing in terms of sustainability.

“As a result of this investment, Lenzing has made further progress towards implementing its climate targets, while achieving much greater autonomy with regard to one of its core raw materials”, says Christian Skilich, Member of the Managing Board at Lenzing Group.

INDIA

Foundation stone laid for new acid plant

The chief minister of Odisha state Naveen Patnaik laid the foundation stone of a new 2,000 t/d sulphuric acid plant for the Indian Farmers Fertilizer Cooperative (IFFCO) at the company’s Paradip site, in a ceremony on July 24th. The project, which is budgeted to cost $54 million, is scheduled for completion in 2023. IFFCO says that the new acid plant, the third at the site, will reduce its dependence on imports of acid, as well as providing energy from waste heat to reduce the burden on the power generation sector, contribute to climate change initiatives by reducing carbon emission and greenhouse gases, generate employment and contribute to overall economic development.

New phosphoric acid plant for GSFC?

According to local press reports, Gujarat State Fertilizers and Chemicals (GSFC) is planning to set up a new phosphoric acid plant. V.D. Nanavaty, the company’s chief financial officer (CFO) and executive director of finance, told CNBC-TV18 that “we are thinking of putting up a phosphoric acid plant with a capex of around 1,5002,000 crore rupees ($200-270 million).” The company reported good earnings for 2Q 2021, with its industrial products showing highest growth.

CANADA

Nickel drives strong results for Sherritt

Sherritt International has reported improved earnings for its 2Q and 1H 2021 results on the back of strong nickel and cobalt production, as well as the receipt of $28 million in distributions from the Moa high pressure acid leach joint venture in Cuba. Speaking at an earnings conference, Leon Binedell, president and CEO of Sherritt International said that adjusted EBITDA for 2Q 2021 was C$18 million, up 114% from last year due to strong production totals at the Moa Joint Venture and improved nickel and cobalt prices.

Mixed sulphides production at the Moa JV in Q2 2021 was 4,020 tonnes, down 7% from 4,323 tonnes produced in Q2 2020. The decline was primarily due to reduced availability of sulphur on account of shipment delays to Moa. Lower mixed sulphides production was offset by the availability of high feed inventory levels at the refinery in Fort Saskatchewan, Alberta. Mixed sulphides production levels returned to normal in the latter part of Q2 with completion of acid plant repairs and improved sulphur availability at Moa.

EGYPT

Evergrow to use stock offering to finance new fertilizer complex

Egyptian fertilizer company Evergrow says that it intends to offer up to 70% of its shares on the open market in an IPO in 2023, as part of a financial restructuring plan, according to vice chairman Ahmed Khalifa. The company had previously discussed 30% or 40% stock offers and a $400 million loan facility from a consortium of local banks. The company will become a holding company with six subsidiaries.

Evergrow is currently constructing a fertilizer complex at Sadat City, 95 km from Cairo, in three phases, which are due to be complete by 2022-23, at a total cost of $1.5 billion. Planned production includes 110,000 t/a of dicalcium phosphate capacity for animal feed, 90,000 t/a of calcium chloride capacity, 100,000 t/a of single superphosphate capacity, as well as calcium nitrate and NPK fertilizer plants. The complex will also include a 40,000 t/a phosphoric acid plant and a 200,000 t/a sulphuric acid plant. The site is being developed in a joint venture with Belgium’s EcoPhos.

NORWAY

Boliden to expand zinc smelter

Swedish mining company Boliden says that it plans to invest e700 million ($827 million) in an expansion of its Odda zinc smelter in western Norway, increasing the facility’s capacity by 75% to 350,000 t/a. New facilities to be added include a new roaster, a new sulphuric acid plant, expansion and modernisation of the leaching and purification plants, and expansion of the foundry and quay infrastructure.

The Sierra do Salitre phosphate project.

Boliden says that the expansion will be powered using hydroelectricity, and that waste will be processed in “using unique, sustainable technology”. As well as zinc, the smelter will also extract lead, gold and silver. The expansion project due to be completed by 2024. Boliden currently produces 1.7 million t/a of sulphuric acid from its facilities at Rönnskär, Harjavalta, Kokkola and Odda, of which Odda represents current production of 127,000 t/a by acid from an annual zinc output of 200,000 t/a. The new expansion would thus lift acid production by just under 100,000 t/a to around 225,000 t/a at Odda.

BRAZIL

Eurochem to buy phosphate project

Russian fertilizer producer Eurochem has signed an agreement to purchase Yara’s Serra do Salitre phosphates project in Brazil. The project, sited in the southeastern Minas Gerais state, comprises a 1.0 million t/a mixed phosphates plant, producing mono ammonium phosphate (MAP), nitrophosphate, single superphosphate (SSP) and triplesuperphosphate). It is due to come on-stream in 2023, reaching capacity during 2024. The project also includes 1.2 million t/a of phosphate rock mining capacity. The mine and associated beneficiation plant are already operating, and currently producing around 500-600,000 t/a of phosphate rock. The project will also include a sulphuric acid plant, a phosphoric acid plant and a 400,000 tonne storage facility for finished fertilizers.

Eurochem will purchase the project through a shares purchase with a cash consideration of $410 million. Yara says that it expects that the transaction will be completed in six months, subject to regulatory approval. Yara had in turn taken full ownership of the project, work on which began in 2014, via its purchase of the remaining 40% stake in Galvani Industria, Comercio e Servicos in October 2018.

SERBIA

Rio Tinto looking to lithium

With increasing demand for lithium for batteries, Anglo-Australian mining company Rio Tinto says that it has committed funding for a $2.4 billion lithium and borate project at Jadar in Serbia. Borates are used in solar panels and wind turbines. Rio Tinto says that it hopes to start construction of the mine in 2022, assuming that all permits are granted, with saleable production commencing in 2026 and full capacity being reached by 2029. Targeted output is 58,000 t/a of lithium carbonate, 160,000 t/a of boric acid and 255,000 t/a of sodium sulphate. Rio Tinto says it would be the largest producer of lithium in Europe for at least 10 years, producing enough for 1 million electric vehicles. Extraction of lithium from jadarite ore would require approximately 1,000 t/d of sulphuric acid.

UNITED STATES

Florida looking to close Piney Point

Florida governor Ron DeSantis has announced that he is directing the Florida Department of Environmental Protection (FDEP) to put together plans to permanently close the Piney Point site. FDEP is currently suing site owner HRK Holdings after 215 million gallons of contaminated water were released into Tampa Bay in March and April this year when a pond holding waste water began to leak – the water was pumped out of the pond at FDEP’s direction to avoid the collapse of the retaining wall. However, FDEP alleges that HRK, itself currently in bankruptcy proceedings, failed to meet a February 2019 deadline to create a plan for removing hazardous materials from the site. Piney Point was a phosphate production site owned variously by Borden Chemical, Royster Phosphates and finally Mulberry Phosphates, which went bankrupt in 2001. The site passed to FDEP, but was bought by HRK in 2006 intending to lease parts of the property to other industrial users, while taking responsibility for longterm maintenance of the gypsum stacks and ponds. However, HRK has been in Chapter 11 bankruptcy protection since 2012.

CHILE

Strikes threatens copper output

Copper prices worldwide began rising after workers at the Escondida copper mine, the largest in the world, began strike action following the breakdown of mediation talks between BHP Group and the Suplant union on August 10th. The Industrial Union of Labour Integration and the Unified Union of Workers also began strike action at facilities owned by state mining company Codelco and JX Nippon Copper’s Caserones mine after the collapse of last-ditch talks over a collective labour contract. High copper prices have increased union demands for better pay and conditions.

BHP finally reached a deal with Suplant’s Andina division on August 18th, but talks are still pending at a number of mines including includes Codelco’s El Teniente, El Salvador and Ministro Hales mines, BHP’s Cerro Colorado, Anglo American’s El Soldado and KGHM’s Sierra Gorda.

DENMARK

FLSmidth to buy thyssenkrupp’s mining business

FLSmidth A/S and thyssenkrupp AG have reached an agreement whereby FLSmidth will acquire thyssenkrupp’s mining business. Completion of the transaction is expected in the second half of 2022 subject to regulatory approval. FLSmidth says that thyssenkrupp’s range of solutions for mining systems, mineral processing, material handling and services are “highly complementary” to its own offering. The combined company will be able to offer a complete pit-to-plant range of technology, equipment and service expertise, as well as digital solutions, covering continuous mining, mineral processing, mining systems and material handling.

Thomas Schulz, Group CEO of FLSmidth, said: “The thyssenkrupp mining business and FLSmidth are a perfect match, and I am proud to announce this agreement to join forces. This is a truly transformational deal allowing us to accelerate our growth ambitions by creating one of the world’s largest and strongest suppliers to the mining industry. This acquisition will offer a strong value proposition for our customers, and there is a significant opportunity in transforming thyssenkrupp’s mining business towards FLSmidth’s business mix and model with more than 50% service business. I look forward to welcoming the talented staff of thyssenkrupp’s Mining business to our organisation.”

Martina Merz, Group CEO of thyssenkrupp AG, said: “FLSmidth is an excellent owner and a very good new home for our mining activities. Both companies have a strong cultural fit and are a good match: the business models are comparable; the technologies complement each other well. The result is a world-leading technology provider from pit to plant. This is also a great opportunity for our employees. The merged new company will be able to drive innovation and digitalisation even faster and will increasingly focus on sustainability and ways to reduce environmental footprint.”

JAPAN

Sumitomo to double high purity acid capacity

Sumitomo Chemical says that it has decided to expand its production capacity for high-purity chemicals for semiconductors at its Ehime site at Niihama. To accomplish this, it will install new production lines to double the capacity for high-purity sulphuric acid at the plant, as well as increasing capacity for high-purity ammonia water at the Dongwoo Fine-Chem Iksan plant in South Korea, by approximately 40%. The new sulphuric acid production line is due to commence operation in the first half of fiscal 2024, according to Sumitomo.

Sumitomo Chemical began the production of sulphuric and nitric acid for semiconductors at its Chiba Works in Japan in 1978, and production of high-purity sulphuric acid at Ehime commenced in 1991. Today the company engages in this business in Japan, South Korea, and China. High-purity chemicals used in the semiconductor production process, mainly for precision cleaning, are manufactured by using ultra-high purification technology to reduce impurities down to a parts-pertrillion level in order to prevent foreign materials such as metal and organic impurities from affecting both quality and yield of semiconductors.

The semiconductor device market has continued to grow, driven by demand for 5G smartphones and increased demand for personal computers and data centre-related equipment. Against this backdrop, demand for high-purity chemicals, which are essential to the semiconductor production process, is expected to continue to increase strongly.