Why didn't Canadian farmers think of this?
A company in India is buying into Karnalyte Resources Inc. as a way to
break the grip of the potash cartel, Canpotex in Canada and BPC in Russia.
Karnalyte is building a relatively small potash mine near
Wynard, Sask., that it expects to be producing and processing 625,000 tonnes a
year by 2015.
Canada exports about 10 million tonnes a year.
Canpotex is a legal export cartel whose members are Potash
Corp., Agrium Inc. and Mosaic Co.
BHP of Australia tried to buy Potash Corp., but Saskatchewan
objected and the federal government nixed the deal. It’s now planning to build
its own mine in Saskatchewan; it might not join Canpotex.
K+ S Ag of Germany began construction in June of a
$3.25-billion mine near Moosejaw.
Gujarat State Fertilizers & Chemicals Ltd. is buying $45 million worth of Kanalyte shares which
would give it close to 20 per cent of the company’s shares. It has also pledged to invest another $15 million later.
And it has signed a 20-year contract to buy potash from the new mine. Construction is to begin in the first half of this year.
And it has signed a 20-year contract to buy potash from the new mine. Construction is to begin in the first half of this year.
Earlier this month China signed a contract to buy an increased volume from Canpotex at a price reduction of $70 per tonne. So far India has waited to sign another contract.
The waiting game by India and China prompted Potash Corp. to shut down four of its mines and Agrium and Mosaic to make moves to keep their inventories from ballooning.
The waiting game by India and China prompted Potash Corp. to shut down four of its mines and Agrium and Mosaic to make moves to keep their inventories from ballooning.
