Analysts see the long-awaited deal to sell potash to Chinese buyers as good news for the beleaguered sector, even though the agreed price is dramatically lower than last year’s.
Belarus Mining News
Belarus has said it might cooperate with Uralkali, in the first sign the two sides might work together since the Russian potash producer broke off their business alliance in 2013.
The Denver-based potash miner is placing its West facility in New Mexico in "care and maintenance” beginning July.
Analysts, companies expect prices to stay below 2015 levels for at least the next two years.
Not only Canadians, but also producers from Russia and Belarus have yet to sign 2016 contracts with Chinese importers.
In the massive Soligorsk mine, workers 2,000 feet below ground are drilling at seams of pinkish rock and rattling a $20 billion commodity market.
While it did not release price terms, it is believed the group will be selling its crop nutrient for US$315 per a tonne,
The move may be the first of many more competitive deals by producers in the potash market, which has historically operated with large joint ventures controlling prices.
According to analysts from Credit Suisse, Chinese importers will settle at $320 a tonne, versus $305 a tonne they paid last year.
While criminal charges against Vladislav Baumgertner, former Uralkali CEO, were ditched, he may face further damages claims as part of the so-called potash case.
Prices are unlikely to reach cartel-era levels, however.
The nation first cut export tariffs to zero in September 2013 and won't reverse measure next year.
'2013 is likely to go down as one of the worst years in the history of the fertilizer industry,' the Motley Fool recently wrote.
Terrorism, regime instability and resource nationalism, are the main risks mining investors will face in 2014.
The move could lead to a revival of the world's largest potash export cartel between Uralkali and Belaruskali.
This compares to the $379 per tonne averaged during the first eight months of 2013.
Belarusian manufacturer to set a Guinness Record.
Upheavals in the potash market continues.
To secure a steady supply in a market shaken by the fresh breakup of the Russia-Belarus oligopoly.
The potash world appears ready to go back to its oligopolistic ways.
Through Belarusian Potash Company (BPC).
New decree will see increase in number of licensed exporters
Sberbank of Russia will take part in a project to mine a potash deposit in Belarus, as the financial institution confirmed Tuesday the refinancing of the $1 billion loan issued to the Belarusian company Belaruskali, responsible for one-third of the world’s production of the fertilizer.