May 4, 2012

Belarusian Potash Company to deliver 500,000 tonnes potash to China

A contract to supply China with 500,000 tonnes of potash fertiliser priced at US$470 per tonne has been signed by CJSC Belarusian Potash Company (BPC), the company said in a release.

The fertiliser cargo will be shipped to China's major importers of mineral fertilisers Sinochem and CNAMPGC in second quarter of 2012.

According to the contract effective April 1-June 30, 2012, the BPC will ship 400,000 tonnes, with 100,000 tonnes as an option.

The contract has been signed at a favourable time for the global potash market, BPC Director General Valeri Ivanov said. Macroeconomic risks are declining, finished goods inventory of potash is being reduced, and prices on the agricultural products market are rising. The purchasing power on key markets is gradually rising.

The contract will keep busy the mining industries of BPC's major shareholders - OJSC Uralkali and OJSC Belaruskali, Ivanov said.

Established in April 2005, Joint Stock Company Belarusian Potash Company (BPC) the sole exporter of potassium fertilisers produced by Belaruskali and Uralkali.

The BPC shareholding structure includes Belaruskali with 45%, Belarusian Railways (5%) and Russia's Uralkali with 50%.

At the moment, BPC controls 42% of the world's potash fertiliser market.