PHOSPHATE HOLDINGS, INC (Ticker: PHOS.pk)
The Company is a major US producer and marketer of diammonium phosphate (DAP), the most widely used phosphate fertilizer. The production facilities are strategically located on a deep-water channel in Pascagolua, Mississippi, with direct access to the Gulf of Mexico. The manufacturing facilities consist of two sulfuric acid plants, a phosphoric acid plant and a DAP granulation plant. The DAP granulation plant has a maximum annual DAP production capacity of approximately 870,000 tons. The existing sulfuric acid plants currently produce sulfuric acid sufficient for annual DAP production of approximately 750,000 tons. When it is economical to do so, the company can purchase additional quantities of sulfuric acid on the open market, allowing the company to manufacture DAP at full capacity.
The company's facility is capable of receiving raw materials and delivering finished products by ocean vessel, barge, rail and truck. The Pascagoula plant has storage facilities for 60,000 tons of finished product and raw material storage capacities of 175,000 tons of phosphate rock, 8,000 tons of finished molten sulfur, 33,000 tons of sulfuric acid and 24,000 tons of ammonia. The Pascagoula plant has ample space to construct additional terminal facilities to handle more products and to provide terminaling services to additional third parties.
The primary product is DAP. To produce DAP they combine phosphate rock and sulfuric acid to forum phosphoric acid, which is then mixed with ammonia to produce DAP, a dry granular product. In its chemical composition, DAP is composed of 46 percent phosphate and 18 percent nitrogen. For the nine months ended 9/30/09 the Company sold 488,269 tons of DAP at an average price of $937 per ton.
Plant life forms cannot survive without phosphate and must have a steady supply of this nutrient to complete healthy growth and produce a bountiful harvest. Phosphate is essential for the photosynthesis process, seed germination, efficient water utilization by plants and protection of plants against diseases. Thus, phosphate fertilizers play an important role in improving crop quality, increasing crop yields, and mitigating the effects of environmental stresses on plants. There are no known nutrient substitutes for phosphate.
Phosphate fertilizers are produced almost exclusively from phosphate rock. World deposits of phosphate rock are generally of sedimentary origin and were laid down under the ocean in earlier geologic times and later raised above sea level. North African reserves of phosphate rock, concentrated in Morocco, Tunisia and Algeria, make up the majority of the world's phosphate rock reserves.