26 September 2011 22:59 [Source: ICIS news]
HOUSTON (ICIS)--Agrium has signed a long-term agreement with Morocco-based Office Cherifien des Phosphates (OCP), under which the Canadian fertilizer producer will receive phosphate rock for its plant in Redwater, Alberta, the company said on Monday.
The phosphate rock from OCP will replace the supplies that the plant currently receives from Agrium's mine in Kapuskasing, Ontario.
That mine should deplete its supplies of rock by the second half of 2013, Agrium said. By that time, the OCP rock should start arriving at the Agrium plant.
Agrium expects a seamless switch to OCP, it said.
Agrium's plant in Redwater produces about half of the company's phosphate, it said. The plant consumes 1m tonnes/year of rock and produces 660,000 tonnes/year of monoammonium phosphate (MAP).
The agreement with OCP should cover rock supplies until 2020, Agrium said. Prices for the rock will be based on a formula that considers the price of the finished fertilizer and published input costs.
The supply agreement is pending approval by the Agrium board. The company did not disclose the financial terms of the agreement.
For more on phosphate visit ICIS pricing fertilizers
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