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Acid Plant Database November 27, 2012
|Owner||Mississippi Phosphate Corporation|
|Location||P.O. Box 848
601 Industrial Road (Highway 611)
- Coastal Chemical Corporation
- Mississippi Chemical and Coastal Chemical merge in 1972
- Nu-West Industries (Englewood, CO) purchase site in 1988 under the name Nu-South
- Mississippi Phosphates Corporation acquires site in December 1990
Parent Company: MIssissippi Chemical Corporation
|Plant||Plant No.1||Plant No. 2||Plant No. 3|
|Coordinates*||-||30° 21' 6" N, 88° 30' 1" W||30° 21' 5" N, 88° 30' 3" W|
|Type of Plant||Sulphur Burning||Sulphur Burning||Sulphur Burning|
|Gas Source||Elemental Sulphur||Elemental Sulphur||Elemental Sulphur|
|Plant Capacity||Original: 545
Current: 907 MTPD
Original: 1360 MTPD
Current: 1588 MTPD
Current: 1588 MTPD
|SA/DA||SA||2/2 DA||2/2 DA|
|Technology||MECS (Monsanto)||Outotec (Lurgi)||Outotec (Lurgi)|
|General||Mississippi Phosphates Corporation’s production facility is located in Pascagoula, Mississippi, and employs approximately 220 people. Mississippi Phosphates has the capacity to produce approximately 750,000 tons of diammonium phosphate (DAP) annually based on sulfuric acid produced at the site and approximately 870,000 tons annually if supplemental sulfuric acid is available for purchase. Two-thirds to three-quarters of this product is sold domestically, with the balance exported, primarily to Latin America. The Company’s export sales are marketed through Transammonia, Inc., a major global trading company. Mississippi Phosphates’ deep-water port facility on the Gulf of Mexico allows the Company to load ships for export directly from the plant site. Domestic sales of DAP are handled through the company’s internal sales staff and are distributed by rail, truck and barge.|
|Personnel||Richard Johnson - Vice President of Operations|
November 26, 2012 - Mississippi Phosphates Corp. has been cited by the government for 40 safety and health violations following the deaths of two workers in separate incidents at the company’s Pascagoula facilities. Occupational Safety and Health Administration says in a news release Monday that it has proposed penalties of $165,900. The company has 15 days to appeal. On May 22, a worker died while attempting to start up a steam turbine in sulfuric acid plant and being hit by flying metal debris when the turbine housing ruptured due to apparent over pressurization. In a similar incident on June 1, a worker restarting a tripped steam turbine in sulfuric acid plant also was killed by flying metal debris when the turbine housing ruptured due to over pressurization. OSHA cited other safety and health violations including exposing workers to “struck-by” hazards by not protecting them against over pressurization and failing to maintain and service equipment in accordance with the company’s maintenance program to prevent over pressurization. The company also was cited for failing to test and inspect pressure relief devices throughout the facility.
February 19, 2010 - Mississippi Phosphate Corp. and the
Environmental Protection Agency have agreed on how to fix environmental
violations remaining after a 2009 inspection, and some found last year.
Many actions were taken in 2009 to tackle problems found by the federal
agency, but it took more than two years to agree on all the terms and
permanent solutions, Richard Johnson, Mississippi Phosphate's vice president
of operations told The Mississippi Press. About 240 people work at the
plant owned by Phosphate Holdings Inc. of Madison. It makes sulfuric
acid and phosphoric acid for fertilizer. In 2009, the EPA said that
the plant posed a danger to health and the environment because of violations
including inadequate safety equipment, improper storage, leaks of sulfuric
acid, and leaks of phosphoric acid to unlined ditches. Company leaders
said then that fixing the problems would cost about $2.5 million. The
EPA's final order, outlining progress and required future actions, said many
of the original problems have been corrected but inspections last year found
"imminent and substantial" danger from corrosive water outside a perimeter
dike. Johnson said the dike is stable, but the water was seeping from
a stack closed in 2005. He said the company immediately neutralized the
liquid and made a berm of agricultural lime to keep the bayou safe during
heavy rains. Johnson said he plans to permanently fix the problem by
installing remediation wells.
November 10, 2011 - Phosphate Holdings, Inc. today reported a third quarter 2011 profit of $1.5 million, or $0.18 per diluted share of common stock, compared to earnings of $2.5 million, or $0.30 per diluted share of common stock for the same period in 2010. Total net sales for the third quarter of 2011 were $94.7 million, a 35 percent increase from total net sales of $70.4 million for the third quarter of 2010. The average sales price per short ton of DAP during the third quarter of 2011 was $578, a 27 percent increase from the prior-year period average sales price of $455. During the third quarter, the Company sold 162,761 tons of DAP, with 112,120 tons moving into domestic markets and 50,641 tons moving into export markets. This represents a 7 percent increase over the 152,500 tons sold in the third quarter of 2010. The Company recorded operating income of $2.7 million for the third quarter of 2011, compared to operating income of $3.9 million for the prior-year period. Earnings before interest, taxes, depreciation and amortization (EBITDA) for the third quarter of 2011 were $6.6 million, compared to EBITDA of $7.3 million for the third quarter of 2010. In the third quarter of 2010, EBITDA was favorably impacted by litigation settlements, net of related costs, of $0.8 million. DAP prices began the quarter at $595 per short ton, NOLA, and $645 per metric ton, FOB, U.S. Gulf. At quarter's end, DAP prices were $586 per short ton, NOLA, and $635 per metric ton, FOB, U.S. Gulf. Sulfur prices in the quarter were posted at $220 per long ton, CFR, Tampa. Ammonia prices began the quarter at $555 per metric ton, CFR, Tampa, and closed the quarter at $650 per metric ton, CFR, Tampa. Commenting on third quarter results, Robert E. Jones, Chief Executive Officer, said, "We are pleased to report positive third quarter results. Our third quarter EBITDA of $6.6 million represents a 234 percent improvement over our second quarter 2011 EBITDA level of $2.0 million. During the third quarter of 2011, we produced 167,000 tons of DAP, which is the highest DAP production level since our second quarter of 2009. However, sulfuric acid production in one of our two sulfuric acid plants operated throughout the quarter at substantially reduced rates due to a damaged heat exchanger. As a result, approximately 27 percent of our third quarter DAP production was produced with purchased sulfuric acid. DAP produced with purchased sulfuric acid had much lower margins than DAP produced with internally generated sulfuric acid. 'On October 21, 2011, we commenced a major maintenance turnaround during which we addressed all known issues constraining sulfuric acid production. During the course of the turnaround, work was performed on both sulfuric acid plants as well as on the phosphoric acid and DAP plants. The turnaround was completed on November 7, 2011 and, while no assurance can be given, we expect materially improved operating rates. Downtime associated with these maintenance activities will adversely impact fourth quarter operations. We are projecting DAP production of approximately 150,000 to 160,000 tons in the fourth quarter." Shifting to the near-to-intermediate-term industry outlook, Jones added, "A very late harvest in much of the U.S. has delayed and will shorten the domestic fall application season. As a result, demand has been soft and DAP prices have declined from $615, on August 1, 2011 to a current level of $565 per short ton, FOB, NOLA. Looking beyond the 2011 fall season, market underpinnings appear strong with high grain prices, historically low grain stocks and a promising demand outlook for the 2012 spring season." As of September 30, 2011, the Company had a cash balance of approximately $4.3 million and borrowings under our revolving credit agreement of $7.5 million. The Company continues to aggressively manage its liquidity and believes that its operating results and available credit facilities should be adequate to meet the Company's financing needs for the foreseeable future. At the end of 2010, our Board of Directors appointed a special committee of independent directors to initiate a comprehensive review of strategic options. While this review is ongoing, we will not hold an earnings call to discuss our third quarter 2011 financial results and will not otherwise discuss this strategic process. When the strategic process is completed, we intend to resume regular quarterly earnings calls. The Company is a Delaware corporation and the sole stockholder of Mississippi Phosphates Corporation. Mississippi Phosphates Corporation is a Delaware corporation with its executive headquarters in Madison, Miss. Mississippi Phosphates Corporation owns and operates manufacturing facilities in Pascagoula, Miss., which produce diammonium phosphate, the most common form of phosphate fertilizer used as a source of phosphate on all major row crops.
August 11, 2011 - Phosphate Holdings, Inc., today reported a second quarter 2011 loss of $1.8 million, or $0.21 per diluted share of common stock, compared to a loss of $4.9 million, or $0.58 per diluted share of common stock for the same period in 2010. Earnings before interest, taxes, depreciation and amortization (EBITDA) for the second quarter of 2011 were $2.0 million, compared to negative EBITDA of $4.6 million for the second quarter of 2010. Total net sales for the second quarter of 2011 were $80.5 million, a 30 percent increase from total net sales of $62.1 million for the second quarter of 2010. The average sales price per short ton of DAP during the second quarter of 2011 was $542.54, a 36 percent increase from the prior-year period average sales price of $400.26. During the second quarter, the Company sold 146,213 tons of DAP, with 74,361 tons moving into export markets and 71,852 tons moving into domestic markets. This compares with 152,434 tons of DAP sold in the second quarter of 2010. The Company had an operating loss of $2.6 million for the second quarter of 2011, compared to an operating loss of $7.1 million for the prior-year period. Robert E. Jones, Chief Executive Officer, said, "Operating issues were the dominant theme of our second quarter of 2011. We simply failed to achieve the production levels of sulfuric acid and DAP necessary for a positive quarter. For the quarter, DAP and sulfuric acid production was 134,445 and 146,043, respectively. We relied heavily on purchased sulfuric acid to supplement DAP production. However, the cost of DAP produced with purchased sulfuric acid is substantially higher than the cost of DAP manufactured using produced acid. "The primary factors negatively impacting our production included phosphate rock shortages due to logistical issues in Morocco which idled our phosphoric acid and DAP plants for nine days; damaged heat exchangers which limited instantaneous rates to approximately 1,000 to 1,200 tons per day in both sulfuric acid plants; and a scheduled maintenance turnaround of one of our sulfuric acid plants which required 19 days. "During the May turnaround, we replaced the impaired heat exchanger and re-established instantaneous rates in excess of the affected plants' design capacity of 1,500 tons per day. The damaged heat exchanger in our other sulfuric acid plant will be replaced in a scheduled October 2011 turnaround. "Phosphate market underpinnings were strong during the second quarter of 2011. Posted DAP prices ranged from $530 to $590 per short ton, NOLA, and $600 to $645 per metric ton, FOB, U.S. Gulf. Sulfur prices in the quarter were posted at $220 per long ton, CFR, Tampa. Ammonia prices averaged $563 per metric ton, CFR, Tampa, during the quarter. "Looking to our third quarter, global phosphate markets should remain strong. The compromised heat exchanger will continue to constrain production from the No. 3 Plant, and we will again seek to augment DAP production with purchased sulfuric acid. We currently project that total DAP production in the third quarter of 2011 will be approximately 155,000 to 165,000 tons, and that 15 to 20 percent of that total will be produced with purchased sulfuric acid."
May 12, 2011 - Phosphate Holdings, Inc. today reported a first quarter 2011 net income of $16,000, compared to net income of $2.6 million for the same period in 2010. The Company achieved operating income of $53,000 for the first quarter of 2011, compared to operating income of $4.2 million for the prior-year period. Earnings before interest, income taxes, depreciation and amortization (EBITDA) for the first quarter of 2011 were $3.8 million, compared to EBITDA of $7.2 million for the first quarter of 2010. Net sales for the first quarter of 2011 were $77.6 million, a 29 percent increase over net sales of $60.1 million for the first quarter of 2010. The average sales price per short ton of DAP for the first quarter of 2011 was $539, which represents a 1 percent increase over the fourth quarter of 2010 average sales price per short ton of DAP, which was $534, and a 30 percent increase over the first quarter of 2010, which was $415. During the first quarter of 2011, the Company sold 140,968 short tons of DAP, with 81,606 short tons moving into domestic markets. Robert E. Jones, Chief Executive Officer, said, “During the first quarter of 2011, our DAP production was impacted by phosphate rock shortages. Severe flooding in Morocco interrupted rock deliveries from the mines to the port causing significant delays in the delivery of phosphate rock to our facility. As a result, we curtailed production during late January and early February to avoid a complete shutdown of our phosphoric acid and DAP granulation plants. As phosphate rock deliveries resumed, we experienced strong DAP granulation results, with 61,885 short tons produced in March 2011. This represents our highest monthly DAP production level in four years. Total DAP production in the first quarter of 2011 was 149,031 short tons. “Early in our second quarter, we experienced additional delays in phosphate rock deliveries, again due to logistical difficulties in Morocco. These delays will result in a shutdown of our DAP granulation and phosphoric acid plants for approximately eight days in early May 2011. To mitigate the impact of this shutdown, we advanced a planned maintenance turnaround on one of our sulfuric acid plants. Both the planned and unplanned outages will impact our second quarter DAP production volumes, which we currently project to be 140,000 to 150,000 short tons. “From a market perspective, the average posted DAP price was $550 per short ton (NOLA), in the first quarter of 2011. Sulfur prices in the first quarter were posted at $185 per long ton (CFR, Tampa). Ammonia prices began the first quarter at $475 per metric ton (CFR, Tampa), and closed the first quarter at $555 per metric ton (CFR, Tampa).”
May 3, 2011 - Mississippi Phosphate Corp.'s Pascagoula plant has remedied all of its small violations cited by the Environmental Protection Agency in 2009, leaders said, but the company awaits EPA approval before implementing plans to fix the larger issues. "We're still working with the EPA, and all of that has gone very well," said Richard Johnson, president of operations. "We have proposals on ways to correct the larger problems that are currently being evaluated by the EPA, and the smaller items are taken care of." The company, which is owned by Madison-based Phosphate Holdings Inc. and employs about 260, manufactures sulfuric acid and phosphoric acid to produce diammonium phosphate, or DAP, fertilizer. In summer 2009, the EPA and Mississippi Department of Environmental Quality inspected and took samples around the plant. According to the order issued following those visits, violations included inadequate safety equipment, improper storage and spills and leaks of solid and liquid wastes. "Throughout their inspections and investigations, they identified some problems that we didn't know we had," Johnson said. The more serious violations principally involved the sulfuric acid plant, Johnson said. "We had some soil samples that came back with a low pH," he said. "We need to remediate that soil." The less serious environmental issues already taken care of included mitigating surface water contamination and providing chemical-resistant clothing for employees. The plant, which opened in 1958, has separate plants on site that manufacture sulfuric acid, phosphoric acid and DAP. "We've dedicated the time and the money and the resources to get those items corrected," Johnson said. As of Dec. 31, the company has spent $5.4 million toward the environmental remediation effort. "Now we're kind of in the wait mode until we get approval," Johnson said. "From the time that EPA says our plan is good, it'll take us a year and a half to implement that plan."
May 2, 2011 - When a company has no control over the costs of its raw materials, it had better produce a steady stream of product, said Richard Johnson, Mississippi Phosphates Corp.'s vice president of operations. The company, which was spun off from the bankrupt Mississippi Chemical Corp. in late 2004, manufactures sulfuric acid and phosphoric acid to produce diammonium phosphate, or DAP, fertilizer. The company's three raw materials -- phosphate rock, ammonia and sulfur -- are all subject to large price fluctuations said Johnson, a Gulfport native who returned to the coast in November to take his current job. "The fertilizer business as a whole is rocky," Johnson said. "It is so influenced by factors we can't control, such as the cost of our raw materials, fuel costs, weather conditions in the Midwest and even foreign governments." For example, the industry suffered when China decided it would stop importing DAP and make its own, he said, and India subsidizes its farmers, so the government sets the price and volume of product that will be imported each year. And DAP itself has experienced dramatic price fluctuations in the 30 years that Johnson has been in the industry, he said, as low as $175 and as high as $1,300 per ton. "It's a roller coaster ride you really don't want to take," Johnson said. Additionally, Mississippi Phosphate is "really small relative to our competition," he said. "We don't get to set the price," he said. "DAP is truly a world commodity, and we don't have the ability to pass on the costs of our raw materials to the customer." What all of that means for Mississippi Phosphates, Johnson said, is that the plant has to be well maintained so it can keep pumping out product. "The key to it is that we're not in charge of the price and we're not in charge of the raw materials, so the more volume we can make, the better off we'll be," he said. "We just have to make the plant run." On average, the company makes about 2,400 tons a day, which is sold domestically and abroad in places such as Latin America, India, Pakistan and "wherever the market calls for," he said. The plant employs about 250 people in Pascagoula and about 10 at the corporate headquarters in Madison. Johnson said he's very pleased with his employees so far. March was especially productive, he said, as the plant produced 61,000 tons of DAP, the most it has produced in one month in the last three years. "For an older plant, that's pretty good," he said, noting the plant opened in 1958.
November 9, 2010 - During its third fiscal quarter of 2010, production problems impaired the Company's ability to fully participate in a rapidly improving phosphate market. A waste heat boiler in one of the Company's sulfuric acid plants, which failed during June 2010, was repaired by the end of the second quarter; however, collateral damage to other parts of the plant caused by the boiler failure could not be addressed until the scheduled maintenance turnaround currently underway. For the third quarter, the Company's sulfuric acid production was approximately 187,000 tons, or 77 percent of originally planned levels. Reduced sulfuric acid production had a corresponding unfavorable impact on DAP production, which was approximately 156,000 short tons. "On November 1, 2010, we commenced a major maintenance turnaround during which we plan to address all known issues constraining sulfuric acid, phosphoric acid and DAP production. During the course of the turnaround, work will be performed on both sulfuric acid plants as well as on the phosphoric acid and DAP plants. The downtime associated with these maintenance activities will adversely impact fourth quarter operations. For the quarter, we are projecting DAP production of approximately 140,000 to 150,000 tons. While no assurance can be given, we currently expect to emerge from the November turnaround at materially improved operating rates."
2010 2nd Q Report - Second quarter 2010 operating results were negatively impacted by plant production issues. Sulphuric acid production was approximately 66% of planned levels. Production rates at both sulphuric acid plants were impacted by problems with the interstage absorption coolers. Moreover, a boiler failure in one of the sulphuric acid plant which shut that sulphuric plant down for 27 days during the quarter. The boiler has been repaired and the sulphuric acid plant came online on June 24, 2010. As a result of the boiler failure and the lost sulphuric acid production, sulphuric acid was purchased to augment DAP production. The purchased sulphuric acid did not provide the same margins as produced sulphuric acid. To provide adequate steam for the phosphoric acid and DAP granulation plant, the auxiliary boilers were operates which added approximately $0.5 million in additional natrual gas costs. The boiler failure also impacted other areas of the plant and contributed to a sharp increase in maintenance expense during the quarter. Second quarter maintenance expenses were over $1.0 million above the prior year second quarter levels.
2010 1st Q Report - Operational issues negatively impacted the Company's results. Production fo DAP was approximately 78% of planned production levels for the quarter. The shortfall resulted from various unplanned outgaes in the sulphuric acid plants. Various factors, including extreme cold temperatures and heavy rainfall events, contributed to these unplanned outages. Additionally, a planned maintenance turnaround was taken on the No. 2 sulphuric acid plant during the this period. Subsequent to the turnaround problems with the coolers in the interstage absorption towers developed requiring replacement of the coolers.
November 20, 2009 - It will likely cost about $2.5 million to correct environmental violations cited at the Pascagoula Mississippi Phosphates plant this summer, company leaders said Thursday during a third-quarter conference call. In August, the Environmental Protection Agency ordered the company to correct spills, improper storage and other violations found during an inspection by EPA and the Mississippi Department of Environmental Quality. Mississippi Phosphates makes sulfuric acid and phosphoric acid to produce diammonium phosphate, or DAP, fertilizer. The EPA said the plant posed a danger to health and the environment. Violations there include inadequate safety equipment, improper storage, and spills and leaks of solid and liquid wastes. The company said Thursday that it had spent about $600,000 toward groundwater remediation and expected to spend up to $2.5 million to remedy all the violations. That total does not include any potential civil penalties sought by EPA and MDEQ, said Robert Jones, the company's chief executive. To date, the company has "either complied with each and every dictate or submitted a plan of compliance and are awaiting EPA response," he said. Madison, Miss.-based Phosphate Holdings Inc., which owns the 230-employee plant in Pascagoula, saw sales and profit fall in the third quarter. The company reported earnings of $724,000, compared to earnings of $12.6 million in the same quarter of 2008. The company lost $10.7 million in the nine months that ended Sept. 30. Company officials said they are optimistic about the fourth quarter. "DAP prices are increasing," Jones said. "The outlook is firm, primarily driven by continued demand in China." The average price of DAP in the third quarter was $267 per ton, he said, in contrast to averages above $1,000 per ton in 2008. Jim Perkins, who oversees sales and marketing, said the company looks forward to a "robust spring season," as farmers who saw bumper crops should have money to buy fertilizer.
September 30, 2009 - The Environmental Protection Agency has ordered a Pascagoula chemical company to correct problems it says have resulted in "an imminent and substantial danger to human health and the environment." The Sun Herald in Gulfport/Biloxi reports EPA issued its order to Mississippi Phosphates, which manufactures sulfuric acid, phosphoric acid and phosphate-based fertilizer. EPA and the Mississippi Department of Environmental Quality inspected the plant during the summer. EPA said hazardous materials were found in soil and water at the site. The agency blamed the problems on numerous spills of solid and liquid hazardous wastes. EPA believes that an imminent and substantial endangerment to human health and the environment exists at the facility due to improper storage, inadequate worker safety equipment and many leaks and spills of solid and liquid hazardous wastes. Some of the work required of MPC in the 7003 Order includes immediate treatment and containment of releases of hazardous waste; submittal of plans and timetables for rapid remediation of contaminated media; identifying and repairing sources of leaks and spills of sulfuric acid, phosphoric acid, and acidic process wastewaters on-site; submittal of plans and timetables for mitigating contaminant migration; and providing all employees with chemical resistant clothing for use inside the plant. EPA and MDEQ will continue to work jointly to oversee MPC's compliance with environmental laws, regulations and permits.
MTPD - Metric Tonne per Day
STPD - Short Ton per Day
MTPA - Metric Tonne per Annum STPA - Short Ton per Annum
SA - Single Absorption
DA - Double Absorption
* Coordinates can be used to
locate plant on Google Earth