AMMON: In mid-March the country’s sole phosphate producer, state-owned Jordan Phosphate Mines Company (JPMC), announced a sales contract with a group of Indian firms to provide 5.2m tonnes of phosphate ore – a raw material used in the production of fertiliser – in 2017.
Though its value has yet to be made public, the deal stipulates that sales prices will be set in line with prevailing global market conditions.
The agreement builds on existing trade relations between the two countries. In 2015 Jordan inaugurated an $860m sulphuric acid plant at Eshidiya, 325 km outside of Amman, through a joint venture between JPMC and the Indian Farmers Fertiliser Cooperative partly aimed at helping meet India’s growing demand for phosphate.
Further good news for the industry came in February, when JPMC signed a memorandum of understanding with the government of Bangladesh to export 270,000 tonnes of phosphate and phosphoric acid over three years – a deal valued at $280m. The agreement revives a partnership between the two nations, with JPMC having been the chief supplier of fertiliser to Bangladesh in the past.
Under the terms of the agreement, JPMC will supply the country with 150,000 tonnes of rock phosphate and 120,000 tonnes of phosphoric acid. According to government figures, Bangladesh already imports 150,000 tonnes of rock phosphate from Jordan.
Jordan is also exploring the possibility of exporting diammonium phosphate, the most widely used phosphate fertiliser, to the country. Drops in production and export
Efforts to maintain supply agreements with foreign buyers and strike new deals come on the back of a downturn last year in production and export volumes for fertiliser and the raw materials involved in its manufacture: potash and phosphate.
While phosphate production rose by 34% to 7.1m tonnes in 2014 and to 8.26m tonnes in 2015, last year saw Jordan’s output of the compound decline by 3.4% to 7.99m tonnes. Figures from January, however, show a strong start to 2017, with yield up 15.8% year-on-year (y-o-y) to 565,200 tonnes, according to the Central Bank of Jordan (CBJ).
In terms of potash, production reached a four-year high of 2.35m tonnes in 2015, an increase of 12.9% over the previous year. As with phosphate, however, 2016 saw output fall close to 2014 levels at 2m tonnes.
