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Bill Doyle, chief executive of Potassium Plus, said that the addition of potassium to China’s large-scale contract negotiations will take place shortly after the New Year. He expects that the overall global agricultural market will continue to be strong due to the large demand for fertilisers from Chinese corn and other varieties of crops. He disclosed that the large import and export contracts to be negotiated with China will be subject to a six-month deadline, which can reduce the risk of both parties and do not have to worry about huge losses in price fluctuations during the year.
While BHP Billiton has not clarified the results of the Canadian government’s review of its purchase of potash, the Potash CEO and market analysts believe that the potash industry will undergo new changes. Bildol said that if the two Russian potash companies, Ural and Silivit, merge as expected by shareholders, the result will be beneficial to all potash suppliers. However, he did not disclose whether he wants to change the mode of joint sales of manufacturers.
The CEO also reiterated his attitude toward the acquisition of BHP Billiton, saying that BHP Billiton’s offer is indeed too low. He also revealed that BHP Billiton’s proposed acquisition of the Saskatchewan potash project at the time included the completion of 8 million tons of annual production capacity, which would make BHP Billiton the eighth or ninth largest potash fertilizer producer in the world. He said that this is not in line with the development direction of BHP Billiton in the mining industry, he is still skeptical of BHP Billiton's acquisition plan. He also said that any “green†potash project in Saskatchewan, Canada, is impractical until the FOB price of potash reaches 600-700 USD.
Garth Moore, president of Potassium Additives, commented on their mining operations in Canada and stated that they had spent $6.9 billion in funds between 2005 and 2015, hoping to increase production capacity to 17.1 million tons. “Our project is proceeding according to plan. All work will be completed before 2015, and the second phase of Cory's production plant is nearing completion. Three other production plants are also under construction. The annual production capacity of Cory's production plant will increase after expansion. To 2.7 million tons, 1.9 million tons more than the original."
In Allan, Saskatchewan, after the completion of the new project, the annual production capacity is expected to increase by 900,000 tons to 2.7 million tons, and the capacity will continue to increase in 2014. The renovation and expansion of the Allan plant includes the installation and upgrading of new equipment and the construction of new power stations and power supply systems. These projects have already started in the third quarter of 2010. â€
The project in Brunswick includes the construction of a new potassium salt production line and the expansion of a production plant. It requires the construction of a transport pipeline, a transformer station, a factory building and a drying plant. After the completion of the new construction and expansion project, the Brunswick plant's annual production capacity is expected to increase to 1.8 million tons.
Potassium expansion plans to expand production
A few weeks after BHP's hostile takeover of Potash Corp. announced its failure, two top potassium addition companies recently revealed some of the world’s largest potash fertilizer manufacturers at a conference on global industrial development. Production plans, and predict that the future potash market will be more "healthy."