Phosphate Fertilizers – Barriers to Entry

Pure-play nitrogen and potash producers each require access to just one raw material. For the production of ammonia and nitrogen fertilizers this is natural gas. Potash producers need potash mining and beneficiation capacities. The production of complex phosphate-based fertilisers requires access to phosphate ore, natural gas, sulphur and potash. The ability to process all of these together requires a multi-stage, capital- intensive production complex.

Integrated production model

19 Expected volume of phosphate rock sales to third parties in 2013

Vertical integration is vital to sustainable performance for phosphate-based fertilizer producers, but the barriers to entry are more complex than for any other nutrient.

Asset integration

following launch of new urea capacity in 2012 we have suspended own ammonia supplies to BMF until new ammonia capacity comes on line