Cash-strapped ex-Soviet republic Belarus is negotiating the sale of its most prized asset, the potash producer Belaruskali, under the terms of a $3bn bail-out loan agreed this month with Russia, the Wall Street Journal reported on Tuesday. Responsible for one-third of the worlds potash fertiliser production, Belaruskali could be worth as much as $20bn. A frontrunner for a takeover is Russia's top producer Uralkali owned by billionaire Suleiman Kerimov. The combined group would easily push Canada's Potash Corp. from the top producer spot.
Potash Mining News
Canadian Business reported that potash is not getting to big a boost from rising crop prices. Wayne Brownlee, chief financial officer with Potash Corp. of Saskatchewan, made the comments at an industry conference on Wednesday: […]
Mining Weekly Online quotes Karnalyte Resources CEO Robin Phinney as saying that its Wynyard project in Saskatchewan has enough resources to eventually produce 6m tons of potash a year and that the company is considering bringing in joint venture partners to do so. Karnalyte initially expects to ramp up production by 500,000 tons per year to reach 2m tons by 2016/2017 at a cost of $1.5bn. The company on Friday was trading at $11, up 42% since it debut on the TSX mid-December last year.
Ethiopian Potash announced the appointment of Robert J. Metcalfe as a director of the Company and the simultaneous resignation of Wally Rudensky from the board of directors.
Rio Tinto and Chinalco will be positioning their drills in Mainland China, the two companies announced today, in a new exploration joint venture to operate under the name Chinalco Rio Tinto Exploration Co. Ltd. (CRTX). According to a press release issued by Rio Tinto, the primary focus of CRTX will be copper exploration, with coal and potash to be considered later.
Canadian potash producers are ramping up production targets in anticipation of increasing demand for the mineral, as farmers buy more fertilizer to boost crop yields. On Wednesday Saskatchewan Potash Corp. said it will squeeze an additional 5 million metric tonnes of potash capacity from its existing mines, according to company CFO Wayne Brownlee, speaking at an investor conference in Toronto.
Let me begin by saying that I believe the premise of this question is mistaken. It is quite incorrect to think that fossil fuel resources are finite. It may be true that there is a finite quantity of such resources in the earth's crust, but that does not mean that we will ever run out.
Two separate Wall Street reports gave fertilizer producers a boost on Tuesday. Investment bank Citigroup upgraded its recommendations for the two top producers Mosaic and Potash Corp. of Saskatchewan to buy citing strong global agricultural fundamentals and reduced Chinese exports. In a separate opinion Barron's magazine over the weekend said Mosaic's stock is worth a look as potash prices are predicted to rise throughout the year thanks to depleted inventories and consolidation among Russian producers.
American Potash LLC, a corporate joint venture owned equally by Confederation Minerals Ltd. (TSX VENTURE:CFM) and Magna Resources Ltd. (CNSX:MNA), is pleased to announce the signing of a Memorandum of Understanding ("MOU") between American Potash […]
Food prices have been rising. The price change has been significant enough to create difficulties in emerging markets. Some countries have had demonstrations and riots. There are several reasons for the increase in food prices:
Although there was no apparent news driving it, Ethiopian Potash's (TSX-V: FED) shareprice leapt by as much as 20 percent Monday, up from 75 to 90 cents on strong volume. The push upwards may come from investors in anticipation of drilling results from Ethiopian Potash's Danakil property, where it reports an inferred resource of 128 million tonne @ 21 percent potash.
Starbucks Corp. (SBUX) has announced that it is raising prices on bagged coffee for sale at its U.S. locations an average of 17% due to rising coffee costs. The company stated that the in-store increase goes into effect July 12. Starbucks is not the only company feeling pressure to raise prices due to rising agricultural commodity prices. The J. M. Smucker Company (SJM) also announced this week that it is raising prices 11% on packaged coffee, including Folgers, Millstone and packaged Dunkin’ Donuts sold at supermarkets. Smucker bought Folgers from Proctor & Gamble Co. (PG) in 2008, and also raised coffee prices 10% in February and twice in 2010 (over a 30% increase since then). Kraft, maker of Maxwell House, raised its brand's price similarly over the last year.
A Conference Board of Canada report says high energy and metals prices "are prompting resource companies to invest billions in iron ore projects, nickel processing and offshore oil developments" in Newfoundland and Labrador, generating the largest growth in real GDP this year of all the Canadian provinces. The board's Provincial Outlook - Spring 2011 report issued Wednesday also forecasts that Saskatchewan "will benefit from tax breaks and a hot mining industry."
In a filing to the Bombay Stock Exchange on Friday, Tata Chemicals said that its subsidiary Valley Holdings has bought a 32.9% stake in EPM Mining Ventures, which is the process of developing a potash prospect in Sevier Lake, Utah. According to the Financial Post talks between India and producers at the International Fertilizer Industry Association's annual conference in Montreal broke down on Friday. At some 7m tonnes/year India is the second largest importer of potash in the world and is asking for a 10% discount on the current price of $500/tonne.
A Conference Board of Canada report says high energy and metals prices "are prompting resource companies to invest billions in iron ore projects, nickel processing and offshore oil developments" in Newfoundland and Labrador, generating the largest growth in real GDP this year of all the Canadian provinces." The board's Provincial Outlook - Spring 2011 report issued Wednesday also forecasts that Saskatchewan "will benefit from tax breaks and a hot mining industry."
The S&P GSCI Index of 24 raw materials dropped about 10% since the Goldman (GS) sell call on April 11. It was up over 1% today on the new bullish call by both GS and Morgan Stanley (MS).
The Financial Post reported that Canadian potash producers have still not made an agreement on potash supplies to India. The market news is quoted as saying: Indian negotiator P.S. Gahlaut said that no resolution was reached at the conference, though talks will continue. “A big market like India should get a little preferential treatment. We can’t be equated with [smaller markets],” he said in an interview.
World number one fertilizer company Potash Corp, received a fillip from S&P on Wednesday after the ratings agency upped the company’s rating to stable from negative and reaffirmed its investment grade corporate credit rating of A-. S&P believes Potash Corp. will benefit from strong fundamentals in the potash business and from the fact that its mines are considered low cost and have long reserve lives. Potash Corp, worth some $46bn on the stock market, has attracted renewed interest from investors on the back of rising global food prices, record earnings at the company, and after a hostile takeover bid was scuppered by the Canadian federal government in November last year.
Reuters reported that the spot price for Brazil potash from Belarus Potash will increase. The market news is quoted as saying: BPC, a joint venture between Belarussian state firm Belaruskali and Russia’s Uralkali, said the move reflected higher global demand for potassium-based fertilizers and limited stocks.
Canpotex held a ground breaking ceremony at the railcar maintenance and staging facility located south of Potash Corp’s Lanigan mine on Friday. In business since 1972, Canpotex is the exclusive offshore marketing company for the three big provincial Saskatchewan potash players and maintains a fleet of 5,000 specialty railcars for its customers in about 30 countries around the world.
Trading Room reports that Melbourne-based Fortis Mining Ltd has agreed to raise $236m by selling new shares and notes to investors in Hong Kong and China to buy and develop two potash mines in Kazakhstan. ASX-listed Fortis, previously a gold and base metal explorer, acquired the rights to purchase the Chelkarskaya and Zhilyanskoe salt deposits in March. The deposits have an exploration target range of 6.5 – 6.6bn tonnes of potassium making them amongst the largest potash salt deposits in the world.
To hear the mainstream media tell it, the commodities bubble has burst. Commodities are plunging across the board in response to the latest U.S. data, most of which seems to suggest that the American economic recovery is waning. Oil, which closed at $100 a barrel yesterday, was particularly hard hit, which is why so many suggest the commodities bubble has met its end.
Canada's Allana Potash Corp said drilling results showed that the potential of its Dallol project in Ethiopia could be extended beyond the original resource estimate, helping its shares pare some of their losses. Shares of the potash explorer, which were down as much as six percent midday before the news, recovered to trade down two percent at C$1.70 on the Toronto Venture Exchange. More than 2.5 million shares were traded by late afternoon.
Has oil moved into backwardation yet? What does corn’s roll yield look like? How do you know when it’s time to buy — or sell? Each week, we investigate the futures curves of the U.S.’ most important commodities, helping investors better understand the market and seize buy-and-sell opportunities as soon as they arise.
You don't need to be a farmer or an economist to understand that weather events can have a dramatic impact on agricultural production from one year to the next. Much of the country has received above-average rainfall in the past few months and there has been widespread flooding as a result. The Mississippi River, for example, is currently experiencing a 100-year flood event. If you live in most parts of the country – such as the West Coast, the East Coast, or the Midwest, you might not realize that Texas and the greater Southwest have scarcely received any rain at all this year. In fact, much of Texas is currently suffering through an "exceptional" drought – the highest level achievable. In other words, if the drought in Texas were a hurricane it would be a "Category 5." A drought simply doesn't get any worse than this and the present conditions