21 May 2013 17:26 [Source: ICIS news]
LONDON (ICIS)--Poland's Zaklady Chemiczne Police (ZChP) is testing batches of African phosphate deposits that could provide feedstock for its nitrogen phosphorus potassium (NPK) fertilizer production, a source at the company said on Tuesday.
ZChP was looking to make an investment in the deposits, should the test batches prove satisfactory, he added.
“Acquiring the deposits could strongly push up margins,” the source said, declining to reveal at this stage what the required capital expenditure would be if ZChP went ahead with the deal.
In its first-quarter results, released on 10 May, ZChP said benchmark phosphate feedstock prices fell 18.8% year on year in the period from January 1 to the end of March this year, while benchmark potash feedstock prices fell 13%.
However, with the company's other major business, titanium dioxide (TiO2), struggling with a lack of demand in Europe, any further boost to NPK feedstock costs would be welcome, the source said.
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