18th AFA Int’l Annual Fertilizer Forum & Exhibition Feb., 7-9-2012, Sharm El-Sheikh , Egypt Maritim Jolie Ville Hotel
Arab Potash Company
Mr. Keith Thornton General Manger, APC Jordan
Arab Potash Company January 2012
1
Main Offices
Safi Plants
APC Aqaba Terminal
APC Mission o
Extract the mineral resources of the Dead Sea.
o
Develop and expand the core business of producing Potash efficiently and safely.
o
Provide stakeholders with high value.
o
Develop the Jordanian exports and contribute to economic growth and improve community. 4
2
Milestones •
Established in 1956 and granted a concession until 2058 to exploit the minerals of the Dead Sea.
•
1976 - Financing secured to begin Potash Production facilities.
•
1976 – 1982 Construction activities.
•
1983 – Commercial production of potash .
•
1987 – Optimization of production to 1.4 Million tons.
•
1994 – Second refinery brings production to 1.8 Million tons.
•
1993 – 97 Optimization of solar system provides enough raw material for almost 2.0 Million tons.
•
1998 – 2002 Downstream Industries such as Salt, NPK, Magnesia, Bromine & Potassium Nitrate are established.
•
2007 – 2010 Building of third refinery (0.5 million tons) 5
Shareholders Potash Corp., 28.0%
The Government of Jordan, 26.9% Social Security, 5.2%
Arab Mining Company, 19.9%
Private Sector, 1.6% Other Arab Countries, 0.6%The Libyan Arab Investment Co., 4.1%
Islamic Bank-Jeddah, 5.2%
The Government of Iraq, 4.7% Kuwait Investment Authority, 3.9%
6
3
Key Figures 2009-2011 (Est.)
2009 2010 2011 •
Capital: 83.3 MJD divided into 83.3 million shares.
•
Shareholders Equity : billion ( 31 Dec)USD
1.009 1.156 1.335
•
Debt / Equity Ratio: percent
6%
4%
•
Total Sales Revenues: MUSD
527
788 1,024
•
Potash Sales Revenue: MUSD
497
746
•
Number of Employees:
1939 1923 1966
•
Market Capitalization: USD
4.26
billion (31 Dec)
5.11
2%
945
5.18
APC’s exports are around 16%% of all Jordanian exports.
•
7
APC in 2009-2011 2009
2010
2011
Production
1.120 MMT
1.943 MMT
2.259 MMT
Sales
0.975 MMT
2.082 MMT
2.233 MMT
Consolidated Sales Revenues
527 MUSD
788 MUSD
Earnings / Share
2.23 USD
2.75 USD
Profits after tax
186 MUSD
1,024 MUSD (Est.) 4.74 USD (Est.)
229 MUSD 396 MUSD(Est.)
8
4
The Dead Sea Elevation
423 M below sea level.
Total length Width (range) Total Area Max depth Salinity
55 KM 12-17 KM 625 km2 360 m 340 g/l
(10 times sea water)
•Rate of fall of the level 1.0 m/yr Total Dissolved solids ~ 43 Billion tons. Potash reserves ~ 2 Billion tons.
Dead Sea – Brine Composition
5
11
APC Solar Ponds Salt Pond Area:
69 km2
Carnalite Pond Area:
43 km2
6
Potash Production •
In 1983, production began with 280 thousand tons.
•
In 1987, initial design capacity of 1.2 million tons was reached.
•
In 1990, production reached 1.4 million tons, after a minor process optimization.
•
In 1994, production reached 1.8 million tons ( cold crystallization plant).
•
In 2010, new Cold Crystallization Plant added with a capacity of 0.5 million tones a year.
•
Potash Production in 2011 was 2.25 million tons
•
Current design production capacity is 2.5 million tons annually 14
7
Production Facilities •
A hot leach refinery of a nominal capacity of 1.4 Million tons per year.
•
Two Cold Crystallization refineries of a name plate capacity of 0.4 Million tons per year and 0.45 million tones per year.
•
Two Compaction facilities of an overall capacity of 240,000 MT per year.
•
An Industrial potash plant of a capacity of 100,000 MT per year.
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Products •
Standard white product for Agricultural use (1.0) Million tons annually.
•
Fine white product for NPK manufacture (1.2)Million tons annually.
•
Granular product for bulk blending (0.25) million MT annually
•
Industrial Grade 99.2% product for Industrial use (According to demand ). 16
8
APC Potash Sales 2005 – 2011 in Thousand MT APC Sales Distribution By Region 2005-2011 2005
2006
2007
2008
2009
2010
2011
592
477
483
809
637
842
557
182
358
352
300
114
344
482
259
170
242
148
22
177
271
China
225
112
320
203
43
314
462
Europe & Africa
295
231
167
130
21
117
145
Jordan
174
187
180
194
69
166
206
79
101
112
110
69
118
112
1,806
1,636
1,856
1,894
975
2082
2233
India Malaysia & Indonesia Asia
Regional Total
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Major Potash Producing Countries in Million MT (2008-2011) of Product Country North America FSU Germany
ICL Group Jordan China Brazil/ Chile Total
2008
2009
2010
2011
18.3
8.0
16.6
19.2
18.1 5.5 4.9
10.2 3.0 4.1
18.9 5.0 4.7
19.3 5.3 4.4
2.0 3.3 1.4
1.2 3.4 1.8
1.9 3.3 2.0
2.2 3.6 2.1
53.5
31.7
52.4
18 56.1
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Potash Deliveries in Million Tons 60
Million Tons KCl
50 40 30 20 10 0
Asia
North Latin Europe America America
ME & Africa
CIS
Total
2007
23.3
9.9
8.3
9.5
1.7
3
55.7
2008
22
8.6
6.8
8.5
1.7
3.6
51.2
2009
14
3.6
3.3
5.8
1
3.3
31
2010
23
9.3
6.7
9
1.5
3.8
53.3
2011
24
9.7
6.6
10
1.6
4
55.9 19
Potash Imports 2005-2011 in Million Tons 10 9
Million Tons KCl
8 7 6 5 4 3 2 1 0
China
India
2005
8.9
5
Brazil 4.9
2006
7
3.4
5.4
2007
9.2
4
7
2008
5.3
6
5.9
2009
1.6
5
3.6
2010
5.2
6.9
6.1
2011
6.5
4.4
7.6
20
10
FOB Aqaba Monthly Prices 2007-2011 700 600 500 400 USD
300 200 100
Jan‐07 Mar‐07 May‐07 Jul‐07 Sep‐07 Nov‐07 Jan‐08 Mar‐08 May‐08 Jul‐08 Sep‐08 Nov‐08 Jan‐09 Mar‐09 May‐09 Jul‐09 Sep‐09 Nov‐09 Jan‐10 Mar‐10 May‐10 Jul‐10 Sep‐10 Nov‐10 Jan‐11 Mar‐11 May‐11 Jul‐11 Sep‐11 Nov‐11
0
21
Storage & Shipping •
Storage capacity at plant site:
100 thousand tons
•
Storage capacity at Aqaba:
240 000 thousand tons
•
•
Potash transported from plant
6 thousand tons
site to Aqaba:
daily (100 trucks)
Ship loading capacity:
1 thousand ton/hr 22
11
Latest Expansion completed in 2010
Potash production Increase By 500,000 MT. Compaction Capacity Increase By 250,000 MT. Storage capacity Increase by 115,000 MT (2 stores in Safi + Aqaba). Increase in Raw material availability. Total investment was USD 500 Million. Expansion Facilities commissioned in 2010. 24
12
Future Plans To enhance the new 250000MT/Year compaction plant to produce the best Granular potash in the world (2011/2012). - To continue the feasibility studies regarding future expansions. - To revamp and expand the Industrial Jetty in Aqaba (2012/13). - To debottleneck the existing hot Leach Plant 0.15 million tons/Year). -
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Subsidiaries & Affiliated Companies
13
KEMAPCO - Plant Capacity:
150,000 tons Potassium Nitrate fertilizers 75,000 tons Di-Calcium Phosphate (Animal Feed Supplement) 60,000 tons Nitric Acid
- Company Capital: 40.85 MUSD - Shareholders: 100% Arab Potash Company
- Project Development: Start of Construction : Start of production: Expected annual sales:
Year 2000 Year 2003 100 MUSD 27
Jordan Bromine Company (JBC) - Company Capital:
77.08 MUSD
- Shareholders: 1) Albemarle Holdings:
50%
2) Arab Potash Company:
50%
- Project development: Start of construction :
year 2000
Start of production :
year 2003
Sales to: Europe, Middle East & Asia including Calcium Bromide for Oil drilling and flame retardants from Bromine derivatives as well as Potassium Hydroxide and other fine chemicals.
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14
NIPPON Jordan Fertilizers Company (NJFC) - Plant capacity:
300,000 tons of NPK fertilizers including Di-Ammonium Phosphate - Exported mainly to Japan. - Company Capital: 23.56 MUSD - Shareholders: 1) Jordan Phosphate Mining Co.: 70% 2) Arab Potash Company: 20% 3) Mitsubishi Corporation (Japan): 10% - Project development: Production started in 1997 Annual Sales: 80 MUSD 29
Numeira for Mixed Salts & Mud Co. -
Products: -
-
Mixed Salts for cosmetics (Raw material and/or finished product) Dead Sea Mud for cosmetics (Raw material and/or finished product)
-
Acts as service provider to APC (Screening, bagging and loading).
-
Company Capital:
-
100% ownership by APC
1.13 MUSD
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