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Released on April 17, 2008
Saskatchewan's potash industry is a symbol of the province's red-hot economy as its companies and mines continue to help meet the growing demands in global food production.
Yesterday, Canpotex Limited, the offshore marketing company of Saskatchewan's potash producers, reached a new agreement with Sinofert Holdings Limited of China to sell its potash to China at $576 US per tonne, a $400 per tonne increase over the price for 2007.
The agreement secures supply with one of the provincial industry's largest customers in a time of tight markets for potash and increasing demand for Saskatchewan product from other markets.
"The Canpotex announcement is great news for an industry that is already working flat-out," Energy and Resources Minister Bill Boyd said today. "It is great news for the shareholders of PotashCorp, Mosaic and Agrium, great news for the 3,500 people who work in our potash industry and great news for our economy overall."
Saskatchewan is coming off a record year for value of potash sales - $3 billion in 2007, a 12 per cent increase over the previous record set in 2005. Total sales of 17.4 million tonnes last year were also a record, up six per cent from the previous mark set in 2004.
Interest in potash dispositions is at unprecedented levels, with a record level of 5.5 million hectares in permits issued or applied for. The industry has announced potential expansions in productive capacity at its existing mines, totalling an additional 11.3 million tonnes of potassium chloride at a capital cost of $6.5 billion.
"Our potash industry has an incredible upside, and is operating in a provincial business climate that will encourage even more growth," Boyd said. "Based on early projections of revenue and sales, 2008 should be a year to remember for our potash producers."
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For more information, contact:
Bob Ellis
Energy and Resources
Regina
Phone: 306-787-1691
Email: rellis@ir.gov.sk.ca
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