Fertilizer Markets and Finance

K+S says demand for the nutrient rose

K+S flagged a sharp increase in world potash demand, even as data showed North American producers of the fertilizer enjoying a record month for exports – counterbalancing signs of weather setbacks to domestic demand.

K+S, the European Union’s top potash group, said that the signing by China and India - the top two potash importers, whose deals set market benchmarks - of fresh orders with North American and Russian producers had sparked the release of pent-up buying pressure.

“Demand for fertilizers rose significantly again in time for the start of the spring season in Europe and North America as well as in South America and South East Asia,” the German-based group said, adding that “prices stabilised”.

Read more at Agrimoney

Mosaic has decided to delay by one or two years expansion of its Saskatchewan potash mines, the company said on Monday. Lawrence Stranghoener, CFO said on a conference call with analysts that the company is deferring the final 2 million m.t./year potash expansion because of unfavorable market conditions and high labor costs. The project was expected to cost “upward of $2 billion.”   “By waiting a year or two, we may see improved labor conditions in Saskatchewan that might help bring down the cost of this project,” Stranghoener said

Read more at Chemical Week

Israel Chemicals (ICL) posted a six percent rise in first quarter net profit, exceeding expectations on strong demand for fertilisers in China.

ICL, the world’s sixth-largest producer of potash, said on Monday its net profit in the quarter rose to $305 million from $289 million a year earlier. Revenue grew nine percent to $1.64 billion. ICL was forecast to earn $286 million on revenue of $1.61 billion, according to a Reuters poll.

Both potash and phosphate fertiliser businesses showed strong growth, with increasing volumes compensating for lower prices, ICL said. About half of its revenue for the quarter derived from products manufactured outside of Israel.

Last month Canada’s Potash Corp , one of the world’s largest potash producers, said it was abandoning efforts to take over ICL because of strong opposition in Israel.

Read more at Reuters

Mosaic Co, the second-largest fertilizer producer in North America, will delay plans to expand potash production in Western Canada due to unfavorable market conditions, a company executive said.

Read more at AG Professional

MINSK, 8 May (BelTA) – Thanks to the efficient work of Belarusian Potash Company, the export of potash fertilizers made by Belaruskali has expanded by 21% up to 1.5 million tonnes in the first quarter of 2013 compared to the same period in 2012, BelTA learnt from Spokesman for Belarusian Potash Company Filipp Gritskov. 

Read more at BEATA

Planning decision on York Potash Project set for July

Sirius Minerals has updated its shareholders on the planning approval process for its York Potash Project.

As part of its timetable to make a determination on the application, the North York Moors National Park Authority (“NYMNPA”) has prepared an ‘issues report’ for its planning committee. 

The report is a snapshot of the planning considerations and does not account for all of the additional information recently provided to the NYMNPA last month. This information was provided by the company following a range of information requests by the NYMNPA and is currently subject to a re-consultation exercise by the Authority with statutory consultees. 

Read more at StockMarketWire

Israel Chemicals: We transfer to the government NIS 1.5 billion as the government’s take, amounting to 41% of the company’s profits in Israel.

Israel Chemicals Fertilizer president and CEO Dani Chen has delivered to Minister of the Economy Naftali Bennett NIS 400 million in potash royalties for 2012. The company pays 16 % of its pretax profit in royalties.

“Israel Chemicals transfers NIS 1.5 billion as the government’s take, in the form of direct taxes, royalties, and the dividends tax, amounting to 41% of the company’s profits in Israel,” said Israel Chemicals Ltd. (TASE: ICL) in a statement today. “In the coming years, Israel Chemicals will pay even more, as a result of changes in the tax policy toward the company, and the government’s take will reach 56%. In addition, the government receives up to an additional NIS 2 billion in indirect taxes on the company’s activity.”

Read more at Globes

Israel Chemicals Ltd. advanced the most in more than a week on bets declines last month after Potash Corp. of Saskatchewan Inc. scrapped a proposed takeover bid were overdone.

The shares gained 1.9 percent, the most since April 23, to 42.99 shekels at 2:24 p.m. in Tel Aviv. They slumped 9.3 percent last month, making it the second-worst performer on Israel’s benchmark TA-25 Index. The measure was little changed today.

Potash Corp. on April 25 scrapped the proposed bid after Israeli workers and politicians opposed what would have been the second-largest takeover in the Middle East. Finance Minister Yair Lapid said last month he would reconsider how resource developers are taxed and would set up a panel to re-examine what he called “the state’s rights” in natural resources that are managed by private companies.

Read more at Bloomberg

In a report that looks at the 10 major themes likely to emerge in the minerals space, Goldman identifies potash as the commodity for the next decade as the pressure to feed the world by achieving greater yields from nutrient deficient soils in China, India and elsewhere grows.

Goldman said potash could be to the next decade what the boom commodity of iron ore was to the last.

BHP’s pending exposure through the development of Jansen is a key factor in why BHP and two other companies — Freeport (copper) and Uralkali (potash) — are considered by Goldman as the likeliest to benefit from their “late-cycle commodity exposure”.

Read more at The Australian

There is a boom in the Saskatchewan economy, and economists all point to increasing exploitation of our resource industries. A major factor has been the expansion of the capacity of the potash industry.

Over the past few years, all of the potash corporations in the province have invested capital in their existing mines. The three existing potash corporations are adding new capacity that will total 14 million metric tonnes (MMT). “Greenfield” mines being developed by K + S Potash Canada and Western Potash will add an additional 5.0 MMT.

BHP Billiton has spent $2 billion developing its Jansen Lake mine and is using state-of-the-art borer machines to construct the two shafts. It is hard to believe it will actually put this development on hold. The first phase of this mine will provide four MMT, with capacity to be doubled down the road.

Read more at Leader Post

Brazilian global miner Vale SA signed an accord with the Argentine government to leave the $6 billion Rio Colorado potash mining project where it suspended work in December, a company press spokeswoman told Reuters on Friday.

* Says Israel should be more receptive to foreign investment

* Q1 profit 63 cents/share vs Street forecast 59 cents

* Q1 sales volumes rise 78 pct as China, India resume buying

* Keeps FY2013 guidance; Q2 forecast lower than expected

By Rod Nickel

April 25 (Reuters) - Potash Corp of Saskatchewan , one of the world’s largest potash producers, said on Thursday it was abandoning efforts to take over Israel Chemicals Ltd because of strong opposition in Israel.

Potash Corp, which currently holds a 14 percent stake in ICL, revealed its decision the same day it reported a stronger-than-expected 13 percent rise in profit after renewed sales to China and India.

Shares of ICL and its controlling shareholder Israel Corp Ltd ended down 4.5 percent and 3.8 percent respectively in Tel Aviv. Potash Corp shares rose about 3.5 percent and 2.9 percent in New York and Toronto by midafternoon.

Read more at Reuters

Plans to extend a potash mine at Boulby in East Cleveland are expected to create more than 270 jobs by the end of 2015, the owners said.

Cleveland Potash, which runs the site near Saltburn, said the development would secure the plant for 40 years.

Plans include extending the mine to the east and upgrading facilities to increase production capacity.

Some groups have raised concerns the development could have an intrusive effect on the local area.

The company hopes to extend its planning permission with the North York Moors National Park Authority to 2063.

Cleveland Potash’s parent company Israel Chemicals Ltd (ICL) is set to invest £300m in the area over the next five years.

Read more at BBC

The potash plant at Boulby is set to increase its workforce by 270 in the next two years

Recently, Potash (POT) released its latest market data update for the month of March. The figures for potash demand are relatively encouraging. Since the start of the fiscal year 2013, potash production by the North American producers is on the rise. The monthly production increased by 37% compared with the previous year level.

Domestic Sales and Exports

Potash exports for the month are high. March exports increased from around 0.8 metric tonnes in February to approximately 1.3 million metric tonnes. This is up by 59%, and a staggering 183% growth over the same period of last year.

Read more at Seeking Alpha