Anglo American adjusts breakthrough in fertilizer

The phosphate unit of Anglo American in Brazil, single arm of South African origin mining fertilizers based in London, set back its growth strategy and strengthened the plans to double the production capacity of phosphate concentrate from 2017. Lively with results obtained in the segment in 2012, the company ensures that no studies more selling the Division, as announced a few years ago.
In 2012, the Group had decided to promote its expansion in two stages, the second clearly dependent on the success of the first. Initially, there would be an increase of an estimated 20% capacity to 30%, then the effective duplication be achieved. But, facing a 15% productivity growth obtained from contributions in improving production processes, the Brazilian subsidiary decided from one time for the 100% increase. The current capacity is about 1.4 million tons of phosphate concentrate per year, and in 2012 the effective production totaled 1.1 million.
Ruben Fernandes, President of Niobium and phosphates business unit of the company since August, explains that a study has already been done "conceptual" for the development of the expansion plan, for which are being completed at this time, the pre-feasibility studies. The necessary investments have not yet been defined.
In 2008, when for the first time this renovated project of doubling the production capacity of the company in the area of fertilizers in Brazil was announced, the planned contributions amounted to $ 1 billion. At the time, the multinational business in the segment were concentrated from Copebrás, that shortly after it was put up for sale as part of a strategy that, as Anglo American, was intended to keep the group focused on a core business that excluded the fertilizers.
In 2011, after many frustrated speculations that the Valley or a foreign company could acquire Copebrás-Brazilian mining company bought control of Fosfertil, which gave rise to the Fertilizer Valley, in early 2010, Anglo American took the subsidiary of showcase and invested in their production processes. "We're not going to sell. Phosphate and niobium are well placed in the new vision of Anglo. The company aims to grow in Brazil and reinforce its image also in phosphates, "said Fernandes.
It is expected that by the end of the year the pre-feasibility studies are in fact completed and their results are submitted to Headquarters in London. If all goes well, the feasibility study should be carried out throughout 2014, with the definition of investments scheduled for the beginning of 2015. "The company rethought the expansion, but the strategic plan for 2013-2018 remains the same".
So that the production capacity is performed, you will need to build a processing plant, which will be in the State of Goiás. In the State, the company maintains a processing unit, in Catalan, and a mine and a processing unit, in Ouvidor. The company also has a processing unit in Cubatão (SP).
The company produces sulphuric and phosphoric acids which are then transformed into fertilizers such as superphosphate, triple superphosphate (TSP) and the monoamônico phosphate (MAP). Has not yet been defined which fertilizers will be produced in greater quantity. "We set the mix of products," says Fernandes.
The expectation of the second largest producer of phosphate fertilizers in the country, after It, is that the doubling of production effectively occurs at the end of 2017, whereas she get all necessary approvals within desired. "We are doing well. I think it's a good project, and it is expected that the advance schedule ", says the Executive.
In addition to production doubling project Anglo American intends to invest in further improvements in unit of Cubatão, which will rely on electric energy cogeneration from the steam produced in the factory of complex acids. In Catalan, where for cogeneration, the process generates about 70% of the energy consumed in processing unit.
Last year, the phosphates of the multinational unit had revenue of $ 597 million compared with $ 571 million in 2011-a growth of 4.5%, but for a value that represented only 1.8% of the total global turnover of the group, $ 32,785 billion. The operating profit (excluding exceptional items and exchange rate changes) Brazilian unit was $ 91 million in 2012, up from $ 134 million in 2011, 32% indentation.
In addition to the business meeting in Niobium and phosphates business unit, Anglo American operates in Brazil, in the markets for iron ore and nickel.