World Sulphur Outlook

World Sulphur Outlook The Sulphur Institute Washington, DC, USA Donald L. Messick Vice President, Agricultural Programs

TSI s Mission Global advocate for sulphur Represents all stakeholders producing, buying, selling, handling, transporting, or adding value to sulphur Unified voice for sulphur producers, consumers, and service providers Promotes safe handling, transportation Protects the environment

All forms Sulphur Production, by Type Million tons sulphur equivalent Most growth in non-voluntary sources: elemental and smelter acid 100 90 80 70 60 50 40 30 20 10 0 ELEMENTAL SOF PYRITES 73.1 78.3 48.8 51.8 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Year

Gas-Recovered Sulphur Production (1000 tons) 2009 2010 2015 Canada 4,412 4,150 3,600 U.S.A 1,190 1,250 1,100 EECA 7,655 8,455 11,600 West Asia 6,894 8,230 13,290 Europe 1,365 1,290 865 China 80 1,070 4,000 Others 928 915 915 Total 22,524 24,860 35,370 Source: Fertecon, 2010

Source: Fertecon, 2010

Oil-Recovered Sulphur Production (1000 tons) 2009 2010 2015 U.S.A 7,630 7,875 9,400 Europe 3,359 3,230 4,230 West Asia 1,955 1,975 2,905 Asia 7,903 7,600 9,020 -China 1,300 1,540 2,300 -India 1,450 1,600 2,000 Others 2,837 3,110 4,070 Total 22,874 23,790 29,625 Source: Fertecon, 2010

Middle East production grows by 12.6 million tons, 2009-2019 25 Others Iran Saudi Arabia Kuwait Qatar UAE 20 (million tonnes) 15 10 5 0 Source: IFA, 2011; BSC, April, 2010

West Asia States sulphur export availability more than doubles, 2009-2019 20000 Others Kuwait Iran Qatar Saudi Arabia UAE thousand tons 15000 10000 5000 0 Source: BSC, 2010

North America: +1.6 million tons Canada USA Canadian production from gas declines. All growth from oil sands, which increases from 1.6 Mt/y (2009) to 3.0 Mt/y by 2015. Sulphur recovery capacity at US oil refineries increases by ~ 2.5 Mt/y by 2013. Source: BSC, 2010 million tonnes 20 18 16 14 12 10 8 6 4 2 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

US Gulf forming plant capacity now totals >12,000 t/d. Company Location Capacity (t/d) Gulf Sulphur Service Donaldsonville LA 4,000 Gulf Sulphur Service Galveston TX 2,000 Martin Midstream Beaumont TX 4,000 Koch Sulfur Products Beaumont TX 345 Koch Sulfur Products Corpus Christi TX 2,000 Source: ICIS, 2011 And more plants are under study, some at inland locations

FSU: +6.4 million tons Gas-Recovered Sulphur Production (1000 tons) 16 Russia Turkmenistan Kazakhstan Uzbekistan 14 FSU sulphur from gas 12 (million tonnes) 10 8 6 4 2 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Source: IFA, 2011;BSC, April, 2010

Source: Oxbow, 2011 FSU Offshore Exports

Elemental Sulphur Production Million tons sulphur Strongest growth is in Middle East, FSU and Asia. All growth is from involuntary production. 70 60 50 40 30 20 10 0 North America Middle East FSU East Asia Rest of World 48.6 51.9 9.8 9.5 10.3 5.95 6.2 6 8.9 8.7 10 8.4 9.1 10.2 11.3 12.1 7.2 8.7 12.26 12.45 9.6 10.4 10 10.3 11.7 12.4 12.7 13.3 14.3 15.3 15.6 15.3 15.5 16.7 17.1 17 16.9 2008 2009 2010 2011 2012 2013 2014 Year Source 2008 and 2009: The Sulphur Institute Source 2010-2014: British Sulphur Consultants April 2010

Source: Fertecon, 2010

Source: Fertecon, 2010

Sulphur Overview - Uses Sulphuric Acid 93% of sulphur consumption is as sulphuric acid 7% is consumed as elemental sulphur Total world acid production in 2010: 200 million tons, up 9% from 2009 From elemental: 122 million tons From smelters: 64 million tons From pyrites: 14 million tons

Nickel Projects Will Create New Demand Location Sulphur Requirement (tonnes/year) Goro, New Caledonia 460,000 Ravensthorpe, Australia 500,000 Ramu River, Papua New Guinea 360,000 Ambatovy, Madagascar 600,000 Moa, Cuba 200,000 Source: ICIS, 2011

Sulphur Consumption Million tons sulphur equivalent After two years of decline, fertilizer demand recovers in 2010 Industrial demand impacted by declining global economy; slight recovery in 2010 100 90 80 Fertilizer Non-Fertilizer 70.8 76.4 70 Million Tons Sulphur 60 50 40 30 20 10 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Year

Sulphur Overview - Uses Phosphate Fertilizers Over 50% of world sulphur demand Demand in 2010 increased Maaden adding 1.5 Mt/y S demand Fertilizer demand growth to come mostly from E. Asia, L. America and S. Asia

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Russia 10% Internationally Traded Sulphur - 2009 Kuwait 3% UAE 6% Poland 1% Others 11% Kaz+FSU 11% Mexico 2% Exports Venz. 1% U.S. 8% Canada 20% W. Europe 7% Iran 4% Saudi 11% Japan 5% China 43% Others 7% 28.3 million tons Imports Oceania 2% Morocco 11% Africa 4% Europe 2% ME 5% Latin Am. 8% U.S. 8% India 5% Tunisia 5% Source: FRC

China Sulphur Imports by Origin Million Tons Per Year 12 10 8 6 4 2 Total N.America E.Asia Mideast Declining trend from N. America (22% of the total in 2010) more than offset by increases from Mideast (42% of the total); Asia and FSU account for 20% and 16%, respectively 0 1995 1997 2000 2002 2005 2007 2009 2010 * Projection Source: China Sulphuric Acid Industry Association

Sulphur: An Advantaged Element Essential for protein in humans, animals and plants Valuable raw material for making wide variety of products in everyday life Natural element in air, water and land Valuable: plant nutrient Valuable soil amendment Valuable component of select construction materials

Sulphur Deficit and Requirement: Global Sulphur - fourth major plant nutrient Required in similar amounts as P, about 20.6 million tons S in 2005. About 10 million tons S applied as a fertilizer worldwide Total S fertilizer market potential for 10.6 million tons S today M illio n T o n s S u lp h u r 30 25 20 15 10 5 0 Plant Nutrient Sulphur Requirement and Deficit (Mt) Crop Requirement Fertilizer Applied 1992 1994 1996 1998 2000 2002 2004 2010 2015 Year 2015 Deficit = 12.5 Million Tons 12.5 million tons by 2015, primarily in Asia and the Americas.

Regional Plant Nutrient Sulphur Deficit Worldwide 7 6.7 2005 2015 Million Tons Per Year 6 5 4 3 2 1 0 5.4 2 2.6 1.5 2.1 1.3 1.6 1.3 1.5 0.7 Asia China India Africa North America Asia has the largest regional deficit around the world with India and China in the lead Latin America 1 0.74 0.8 Western Europe 0.36 0.44 Eastern Europe

Sulphur Fertilizers: New Ground for Fertilizer Industry Traditional S fertilizer production will not meet the increasing demand for sulphur in agriculture. Sulphur fertilizers and their use provides potential market of 9.6 million tons of sulphur consumption annually, benefiting the industry. Fertilizer producers need to address this market potential

Sulphur World Symposium 2012 Mark your calendars now! The Premier Sulphur Industry Event will be in Antwerp, Belgium April 23-25, 2012 for: Two days of networking with top industry players Insightful speakers on key topics A Sulphur Education Session for those new to the industry Visit www.sulphurinstitute.org for updates!

TSI Member Companies BP Products North America, Inc. California Sulphur Company Chemical Initiatives Chemtrade Aglobis Citis SA ConocoPhillips Company Con-Sul, Inc. CoreSulphur Crescent Technology Inc. Devco USA LLC Enersul Inc. Etihad Railway ExxonMobil Oil Corporation Franz Fischer Spedition GmbH GATX H.J. Baker & Bro., Inc. Importadora Santa Alicia Ltda. (ISA) Interacid Trading S.A. Inter-Chem Jupiter Sulphur L.L.C. Koch Sulfur Products Company LLC Marsulex, Inc. Martin Operating Partnership, L.P. Mitsubishi Corporation Mitsui & Co. (U.S.A.), Inc. Mosaic Fertilizer LLC Oxbow Carbon PotashCorp Primary Resources Inc. PRISM Sulphur Corporation SaeKwang Chemical Ind. Co. Ltd. Sandvik Process Systems Savage Services Corporation Schiber Truck Company Shell Sulphur Solutions Sino-Chem Fertilizer Company Ltd. solvadis GmbH Sultran Ltd. Tasweeq Qatar International Petroleum Marketing Company Ltd. Tessenderlo Kerley, Inc. Transammonia, Inc. Union Tank Car Company Uralchem Valero Marketing and Supply Company Zwaans van der Heuvel Tankvaart BV