Germany’s K+S, the world’s fourth-largest potash miner, will stick to its Saskatchewan expansion project following Russian rival Uralkali’s decision to abandon an export cartel that led to expectations of a slump in potash prices.
Uralkali last week sent shock waves through the potash industry by abandoning an export joint-venture with Belaruskali and forecasting a more then 25 per cent slide in the price of potash to below US$300 per tonne.
“Our (Canadian) Legacy project is on track, we will not call this important venture into question in response to mere speculation,” CEO Norbert Steiner said in a statement Tuesday.
Read Also
Mail strike disrupts grain sample delivery
The Canadian Grain Commission has asked farmers to consider delivering harvest samples directly to CGC offices, services centres or approved drop offs as Canada Post strike delays mail.
Analysts had expected K+S to further postpone its planned C$4.1 billion investment in the new mine known as Legacy, sited in the Saskatchewan RM of Dufferin, about 70 km northwest of Regina.
In April, it said the venture would absorb a quarter more investment and that start of production would be delayed by half a year until mid-2016.
K+S, also the world’s largest salt supplier, also scrapped its outlook for slightly higher adjusted earnings before interest and tax in 2013. — Reuters
