Reuters reported that Israel Chemicals (TLV:ICL) will supply an additional half million tons of potash to Chinese customers in 2011.
Potash Mining News
Bloomberg reported that Russia's attempt to capture a huge stake in global potash resources from Belarus may be trumped by China.
CuDeco Limited (ASX:CDU) said today that FIRB has approved Oceanwide International Resources Investment Co. Limited to increase its shareholding in CuDeco to 19.9% through a further 15 million share subscription at A$3.80 per share. The raised funds will be utilised for CuDeco's flagship Rocklands Group Copper Project in Cloncurry in northwest Queensland. The Project is expected to commence commissioning in late 2012 or early 2013.
Globes reports Israel Chemicals, a unit, ICL Fertilizers, will sell potash to its Chinese customers at $470 a ton, $70 a ton higher than prices to China during the first half of 2011. Under the terms of the current contract, 500,000 tons will be delivered in the second half of 2011 for $235 million. ICL reported that since 2010, it has broadened its customer base in China, and sells potash directly to Chinese fertilizer producers and distributors. ICL, which is controlled by Israel Corp, is the world's sixth-largest producer of potash.
Potash will play a huge role in Saskatchewan's predicted economic growth of an average rate of 3.5% over 2011 and 2012, according to the latest economic forecast by Scotiabank. Potash production is expected to climb close to its 2007 peak of 11 million tonnes in 2011, after suffering a dramatic 60% drop during the recession of 2009.
Stocks of Allana Potash Corp was trading slightly up at midday on Thursday after the company announced it had intersected strong potash mineralization in an area not previously drilled at its 160 square km Dallol project in Ethopia. Listed on the TSX-Venture exchange Allana's East Africa project has the backing of the World Bank and most of the assets there are still being quantified. The value of the company has doubled in 2011 and investors who bought the stock in July last year would have enjoyed a four-fold return.
Dow Jones reports Argentina's Mendoza Province has lifted its suspension of the multibillion dollar Rio Colorado potash mine project being developed by Brazilian mining company Vale SA. Mendoza's Environmental Secretariat has allowed Vale to move forward with the mine after the company agreed to submit reports on its local hiring and procurement practices to the local authorities, the provincial government said in a statement.
IC Potash, which hopes to build a potash mine in New Mexico, on Tuesday said a study it paid consultants UK-based CRU Strategies to conduct on its Ochoa project found “excellent market potential” for future production of sulphate of potash (SOP).
The Yorkshire Post reports Sirius Minerals has started a concept study at its York Potash project, paving the way for mining to begin at the UK’s only seam of potash. Sirius has secured mineral rights for 631 sq km of land between Whitby and Scarborough with plans to open a new potash mine and create up to 5,000 jobs. Sirius is about to start drilling two temporary boreholes in the North York Moors National Park. Once it gets an idea of what the potash seam looks like under the ground it can plan where to site the mine.
Potash miner Mosaic will have to continue supplying rival PotashCorp with potash while a court reviews whether a supply deal between the two companies has ended, the Manitoba Co-operator reported: Minneapolis-based Mosaic Co. said Thursday it has been ordered by Saskatchewan's Court of Queen's Bench to keep supplying PotashCorp with potash from the Mosaic mine at Esterhazy, Sask., as per the terms of a tolling agreement which Mosaic claims was concluded in May.
Agence France Presse reports Argentina is promoting the idea of an OPEC-like cartel for itself, Bolivia and Chile – which together control 85% of the world's reserves of lithium – to manage prices and limit overproduction. A ton of lithium, worth around $2,500 in 2004, now sells for more than $6,000 and its greatest use is expected to be in electric vehicles: if electric cars achieve a 5% penetration rate by 2020, 60,000 tons of lithium will be needed to fill the demand according to one analyst but recycling would reduce demand for virgin materials.
BHP said in a statement overnight that the Saskatchewan Ministry of Environment had notified it of the approval, following an environmental impact statement submitted in December, 2010. BHP said Jansen would employ an average of 1,900 people during construction and create approximately 1,000 operational jobs once the mine has reached full capacity.
The world seems set to enter a period of slower growth and higher inflation and investors would do well to gain some direct exposure to commodity markets, said Barclays Capital MD Kevin Norrish on Wednesday.
Belarusian Potash Company, the agent for Uralkali and Belaruskali, has sold potash to two Chinese fertiliser importers at prices $70 a tonne higher than in the first half.
Canpotex Limited (Canpotex) today signed a contract with Sinofert Holdings Limited (Sinofert) to supply 630,000 tonnes of potash during the second half of calendar 2011 at price levels which reflect an approximate $70.00 per tonne increase above the first half China price level.
Alberta's Saccharum Energy Corp, an investment company focused on the resource sector announced on Tuesday that it has entered into an earn-in agreement with Marifil Mines Ltd to acquire up to a 70% interest in certain of Marifil's Argentinean potash properties. Trading in Saccharum's shares has been suspended on the TSX Venture exchange pending approval of this transaction. The capital pool company is up more than six-fold since listing at the beginning of last year.
Reuters quotes the chief executive of Russian potash producer Uralkali telling an investment conference in Moscow on Tuesday that spot potash prices could reach $600 per tonne by the end of the year. Uralkali also said it was considering entering into a transaction with Belaruskali, contradicting a Belarus deputy prime minister who earlier said the $20bn state-owned company was not for sale. A Belaruskali-Uralkali merger would create a group with annual production of 21m tonnes, dwarfing current number one Canada’s Potash Corp.
CBC News reported that Western Potash Corp. (TSE:WPX) is interested in buying wastewater from Regina. The market news is quoted as saying: The mine, which hopes to begin production in September, 2015, would need about 200,000 litres a day for at least 40 years.
Global BC reported that Canada’s federal government had documentation to indicate that selling Potash Corp. (NYSE:POT) to BHP (NYSE:BHP) could cause the government to lose revenue. The market news is quoted as saying: Premier Brad Wall, who waged a high-profile campaign to block the deal, has estimated the province would lose between $3- to $6-billion in revenue over the course of a decade if PotashCorp were sold.
China’s massive appetite for commodities is creating concerns for the global economy, the environment and workers in other countries. In a series of reports, VOA is looking at the economic power modern China wields. Chinese government and company officials are signing agreements at a dizzying pace around the world, including in places where few other foreigners invest.
Rum Jungle Resources Limited has received an initial assessment of the Resource potential of the drilled grid area at Barrow Creek 1 from the Independent Geologists. The Company is extremely optimistic with these early favourable results that a major new resource of world class can be established by increasing the drill grid to incorporate an additional 20,000 metres of drilling in the current field season.
The Sydney Morning Herald reports Fortis Mining chiefs Jitto Arulampalam and Frank Cannavo are clearly hoping to repeat history by moving into the boardroom of another exploration hopeful, Great Western Exploration. The duo have not only taken control of the board, but brought along some of their favourite Hong Kong backers from would-be Kazakhstan potash miner Fortis - Madam Cheung Kwai Lan, and Team Lucky.
Nasdaq reports farmers want so much fertilizer to meet demand for agricultural products that potash producers are raising their prices on an almost constant basis now. Back in January 2010, German potash producer K+S was charging 285 euros – roughly $407 – per ton of potash. As of now, bulk clients are buying potash at 363 euros or $520 per ton, a 27% net increase over the last 18 months.
Rock Tech Lithium Inc. reports on the preliminary results from its metallurgical testing on a bulk sample taken from its Georgia Lake lithium project.
Cameco invests third tranche investment of $5 million for further development of Uranium Equities’ PhosEnergy Process. Demonstration Plant construction completed and undergoing final commissioning for the recovery of uranium as a by-product of phosphate fertiliser production.