Top Belarus potash firm in deal with Qatar company
Minsk, August 5, 2013
Belarusian potash producer Belaruskali has reached a preliminary deal with a fertiliser marketing company in Qatar, as it seeks a new strategy following a break-up of a trading venture with its Russian partner last week.
Russian potash producer Uralkali quit Belarusian Potash Company (BPC), one of the world's two big potash companies, on July 30, and said it would now funnel sales through Swiss-based Uralkali Trading, heralding a price war for the key crop nutrient and pummelling the shares of companies that produce it.
Uralkali predicted that its break-up with Belaruskali from BPC would cause the global potash price to fall by 25 percent to below $300 per tonne in the second half of 2013. Analysts fear it could also halt global potash projects.
Belaruskali and Qatar-based marketing company Muntajat reached a framework agreement on cooperating with regards to potash sales, state-owned Belaruskali said in a statement on Monday.
Muntajat is ready to sell up to 3 million tonnes of Belaruskali potash per year, the company said in the statement. Belaruskali produced about 8 million tonnes of potash last year.
The agreement is part of a new trading strategy for Belaruskali, the company said. It also plans to strengthen its positions in new markets, the Belarusian producer added. - Reuters
