Potash

BHP keeps Canadian potash option open

By Barry FitzGerald

BHP Billiton is tipped to pump another $US500 million of pre-approval development capital into its Jansen potash project in Canada in coming months as part of a strategy that could lead to a full-blown $US12 billion development decision in 2015-16.

Question marks have hung over Jansen since BHP stepped away from making new major capital commitments because of the squeeze on cashflows coming from the slump in commodity prices. Read more

Allana in Ethiopia says potash oversupply fears overblown

By Christopher Donville

Allana Potash Corp., the Canadian developer of a $642 million potash mine in Ethiopia, says predictions of a global oversupply of the crop nutrient are overblown because competing projects are being put on hold.

World potash production capacity will rise 38% to 96.5 million metric tonnes by 2017, while demand will increase 26% to 66 million tons, according to Green Markets, a fertilizer industry information provider. Read more

Allana Potash shares go on a tear

By Kip Keen

Since hitting a 52-week low in mid April at C$0.37 Allana Potash shares are up 62 percent to C$0.60 at presstime.

At first it was modest gains. Allana had been falling for most of 2013 but started to turn tide last month after it released an update in which it noted, among other things, Read more

BHP gets thumbs up for $10bn potash play

By Barry Fitzgerald

BHP Billiton’s proposed $US10 billion ($9.7bn)-plus diversification into the global bulk fertilisers market through the development of its Jansen potash project in Canada has received a seal of approval from Goldman Sachs.

In a report that looks at the 10 major themes likely to emerge in the minerals space, Goldman identifies potash as the commodity Read more

Potash Corp scraps takeover bid for Israel Chemicals; tops profit expectations

By Christopher Donville

Potash Corp. of Saskatchewan Inc., the world’s largest fertilizer producer, scrapped a proposed takeover bid for Israel Chemicals Ltd. after opposition to the deal from workers and Israeli politicians.

“Now is not the time to pursue this opportunity,” Saskatoon, Saskatchewan-based Potash Corp. said Thursday in its first-quarter earnings statement. Read more

Costs climb, commissioning delayed at Legacy potash mine

News of a 26% capital cost increase and six-month start-up delay at the Legacy potash mine in Saskatchewan drove owner K+S AG‘s share price to a five month low, but the German company remains confident the project offers attractive economics and good potential to grow into a major potash operation. Read more

HOISTS: ABB to build world’s largest for Jansen potash project

ABB, with Canadian headquarters in St-Laurent, QC, has been selected by Australia-headquartered BHP Billiton to supply mine hoisting systems for the Jansen potash project, located 130 km east of Saskatoon.

The contract includes the overall design, manufacturing, supply and installation of four complete mine hoist systems to be delivered over a period between 2015 and 2018. Read more

BHP’s potash mega-project could soon be approved

By Peter Koven

Vale looks to other potash projects after Argentine mine halted

By Sabrina Lorenzo

Brazilian miner Vale may try to develop potash mines in Brazil and Canada that it had put on hold, as the company tries to make up for the suspension of its $6 billion Rio Colorado project in Argentina, a source with direct knowledge of the situation said on Monday.

Vale’s Carnalita project in the Brazilian state of Sergipe and Kronau mine in Canada Read more

Potash juniors look to importers for cash injections

By Rod Nickel

Undeveloped Canadian potash projects are drawing investment from a new and unexpected source, as buyers of the crop nutrient in India cross over to the industry’s supply side.

The strong interest by Indian fertilizer companies in equity stakes and agreements to take a certain percentage of a supplier’s production is a welcome development for junior miners Read more

Potash Corp seeking control of Israel Chemicals

Potash Corp of Saskatchewan wants to buy at least majority control of ICL Israel Chemicals Ltd and sees local opposition to its approach as based on unfounded fears, Potash Corp’s chief financial officer said on Tuesday.

Potash is aiming to boost its 14 percent stake to at least 51 percent and preferably 100 percent of ICL, Read more

Karnalyte Resources wins India investor for new potash mine

By Rod Nickel

Tiny Canadian mining company Karnalyte Resources has landed a small, but strategic investment from India, pushing its planned potash mine closer to direct competition with the world’s dominant sellers of the crop nutrient.

Gujarat State Fertilizers & Chemicals Limited, an Indian farm business that makes fertilizer and industrial products, will buy a nearly 20% stake in Karnalyte for $45 million, or $8.15 per share. Read more

Western Potash says construction could begin this year on $3B mine near Regina

REGINA — A senior official with Western Potash Corporation is hoping construction can start this year on a $3-billion dollar potash mine southeast of Regina.

Dean Pekeski says the company needs environmental approval from the province and to finalize financing before work gets underway. Read more

Potash Seen Falling as Asia Wields Purchasing Power: Commodities

By Christopher Donville & Yuliya Fedorinova

China and India are set to negotiate the biggest price cut in three years to buy potash as they break a deadlock in meetings with Russian and North American producers that dominate the $24 billion market for the crop nutrient.

Indian talks have begun and China could start in January or February, said Oleg Petrov, marketing director for Russian supplier OAO Uralkali. The countries may pay as little as $430 a ton, down at least 8.5 percent, Read more

Potash Corp. surprises with pricing cuts

By Jonathan Ratner

Pricing cuts by Potash Corp. of Saskatchewan Inc. for U.S. customers on Wednesday came as a surprise to industry watchers given recent mine shut-ins at the fertilizer giant.

Green Markets reported a 4% drop from levels quoted by Midwest sources in recent weeks, with prices marking a roughly 12% decline from Potash Corp.’s last official warehouse posting in July 2012. Read more

BHP May Attract $2 Billion Potash Mine Partner, Deutsche Says

By Jesse Riseborough

BHP Billiton Ltd. (BHP), the world’s biggest mining company, may attract investment of $2 billion from fertilizer makers as well as sovereign wealth funds in its Canadian potash project, according to Deutsche Bank AG.

“Bringing in one or more partners would reduce the capital outlay for shareholders and guarantee long term sales volumes,” Deutsche analysts Grant Sporre, Paul Young and Rob Clifford wrote in a report today. Read more

Potash Exports Grip Challenged in China’s Bond Deal: Commodities

By Yuliya Fedorinova and Maria Kolesnikova

China’s loan to potash billionaire Suleiman Kerimov should give the world’s biggest buyer of the crop nutrient its first access to the global suppliers who dominate fertilizer makers.

The China Investment Corp. sovereign wealth fund last week agreed to buy bonds from the investor and his partners that they can repay in 2014 with a 12.5 percent stake in OAO Uralkali, Read more

Allana Potash upgraded

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By Jonathan Ratner

Allana Potash Corp. was upgraded to outperform from market perform by Raymond James analyst Steve Hansen after a recent visit to the Danakhil Potash Project in Ethiopia gave him more confidence in the company’s prospects.

“We came away from our Ethiopian tour with far greater confidence in Allana’s ability to further advance its flagship Danakhil Potash Deposit toward production,” he said. Read more

Potash Corp. results withered by India’s drop in demand

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By Pav Jordon

Bill Doyle wishes India’s government would get on with its need to boost farm output and start importing more potash, his company’s namesake product.

Potash Corp. of Saskatchewan Inc., the world’s largest maker of fertilizers, has seen its profits slashed in repeated quarters this year, Read more

Potash issues profit warning on contract delays with China, India

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By Peter Koven

Potash Corp. of Saskatchewan Inc. has slashed its third quarter and full-year earnings guidance for 2012, citing lower-than-expected potash sales volumes. The stock dropped 2.5% in early trading Wednesday on the news, but quickly recovered most of those losses.

This is the third time this year that the world’s largest fertilizer company has cut its guidance (though one of those times was due to a unique impairment charge). Read more

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