FOSKOR
FOSKOR
A Vital Cog
In South African Agriculture PRODUCTION: Timothy Reeder
Foskor is one of the world’s largest producers of phosphates and phosphoric acid, a proudly South African company with international exposure founded over 60 years ago as a crucial supplier to South Africa’s agricultural sector.
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Foskor was founded with a £1 million loan from the Industrial Development Corporation (IDC) in 1951 to produce phosphates for South Africa ’s agricultural sector, and is the only vertically integrated phosphate producer in South Africa operating today. The Group’s core activities are the mining of phosphate rock and the production of phosphoric acid and phosphate-based fertilisers. Foskor mines and beneficiates phosphate rock at Phalaborwa in South Africa’s Limpopo Province, from where it is carried by rail to the production facility in Richards Bay in KwaZulu-Natal. About 84% of Mining Division’s phosphate rock concentrate is railed to Acid Division and the rest is sold externally. The Acid Division exports phosphoric acid to India, Japan, Bangladesh, the Netherlands, Mexico and Dubai, where it has a
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variety of agricultural, industrial, medical and retail applications. Products made from the phosphoric acid include catalysts, rust proofing materials, chemical reagents, latex, dental cements, tooth whiteners, toothpaste, disinfectants, food supplements, carbonated beverages, waxes, polishes and animal feeds, among others. Phosphorus is an essential element for plant and animal growth, and one of the key essential elements in modern agriculture; it is one of 17 nutrients essential for plant growth, whose functions cannot be performed by any other nutrient. It is therefore a vital cog in maintaining profitable crop and livestock production, and is required by crops in relatively large amounts. In addition, it can increase
the biological productivity of surface waters by accelerating eutrophication, which describes the natural ageing of lakes or streams brought on by nutrient enrichment. Fertilisation of crops, by a long way, makes up the largest proportion of Phosphorus used in agriculture. Its use has become increasingly prevalent during recent decades due to its depletion in soils used for crop and hay production. The importance of Phosphorus to crop production systems is illustrated by the amount of fertiliser being used during the last 35 years, which has doubled since 1960, and stabilised at slightly under two million tons per year over the last decade. Phosphorus has many important functions in plants, the primary one being the storage and transfer of energy through the plant,
while certain high-energy phosphate compounds control the majority of processes in plants including photosynthesis, respiration, protein and nucleic acid synthesis, and nutrient transport through the plant’s cells Foskor is the leading South African supplier of granular fertilisers, which are the core ingredient in the ubiquitous nitrogen, phosphate and potassium fertiliser products known as NPKs. NPK fertilisers are comprised primarily of the three primary nutrients required for healthy plant growth, and the agriculture industry is heavily reliant on their use to meet global food supply and ensure healthy crops. Indeed, according to the International Fertilizer Development Centre (IFDC), about half of the global population is alive today as a result of the increased food production
provided by the use of mineral fertilisers. IFDC has, since 1974, focused on increasing and sustaining food security and agricultural productivity in over 100 developing countries, primarily through the development and transfer of effective and environmentally sound crop nutrient technology and agribusiness expertise. Additionally to its leading work with fertilisers, Foskor is also known as a commercial producer of phosphoric and sulphuric acids, and magnetite, a by-product of the phosphate beneficiation process, all of which which are sold both locally and abroad. From phosphate-bearing ores, the operations in the Foskor Mining Division process phosphate rock concentrate, which is a crucial ingredient for stimulating and raising crop yields. The Acid Division Plant,
meanwhile, manufactures sulphuric acid, phosphoric acid and phosphatebased granular fertilisers (MAP and DAP) by using phosphate rock as a raw material. Foskor seeks to unlock shareholder value through the profitable, responsible and sustainable beneficiation of phosphate rock into either phosphoric acid or phosphatebased granular fertilisers, which go on to be sold globally. With an employee base numbering more than 2000, Foskor was this year awarded the Top Employers South Africa 2017 certification, with comprehensive independent research revealing its provision of exceptional employee conditions and a commitment to nurturing and developing talent throughout all levels of the organisation. It has also demonstrated its leadership status
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FOSKOR
in the HR environment, continually striving to optimise its employment practices and to develop its employees. Such an approach has also been evident in Foskor’s Agricultural Training Learnership Programme, which has seen ten Madlanzini youths benefitting from an agricultural training learnership programme rolled out by the community skills development initiative, Beautiful Pillars Projects. The project is driven by local businesswoman Nonhlanhla Ngonyama, who has earmarked a site in Madlanzini, in Ubombo, to erect a community skills centre which will provide learnership opportunities in plumbing, catering, agriculture and welding. Foskor Richards Bay donated gardening equipment and tools, while Umfolozi Technical Vocational Education and Training (TVET), one of nine FET Colleges in the province of KwaZulu-Natal, pledged its support and expertise to the skills centre. Foskor’s Senior Manager Project and Strategy, Shivaji Gadhave, neatly condenses how hard Foskor has striven to make these commitments a core tenet of its mission. “Foskor offers fantastic career development opportunities and shows confidence in its staff,” he expands, illustrating that
// WE HAVE LONG-TERM RELATIONSHIPS AND ESTABLISHED LOGISTICS SO WE ARE WELL POSITIONED IN LOCAL AND INTERNATIONAL MARKETS // development of staff forms one of the pillars of Foskor’s strategy, rather than purely concerning itself with thoughts of profits, “while we have a mechanism in place where we engage with not only employees but also the local community.” While the difficulties of the mining and commodities market at present are well documented, Foskor has opted to act positively and decisively, recently announcing large-scale investment into its equipment and plant with the aim of revitalising the business and improving reliability, availability and efficiency. Following the successful installation of the company’s new plant and the upgrades of machinery, Foskor will turn its attentions to growing in terms of profits and markets served. “We always think about our country and our continent so one of the initiatives from our side is to contribute to the SADC market and grow our business there while looking for strategic alliances where possible so
that we can penetrate those markets,” says Gadhave. “We also have strategies to increase our product basket. We want to add value and move into downstream products and we are planning to diversify our business to reduce risk and ensure everything is financially sustainable. “We are still focussing on our South African market and there are advantages here for us. We have longterm relationships and established logistics so we are well positioned in local and international markets.”
FOSKOR 011 347 0600 info@foskor.co.za www.foskor.co.za
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AFRICA
THE BUSINESS MAGAZINE FOR AFRICA’S INDUSTRY LEADERS
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Issue No.65
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ALEXANDER FORBES
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