SASKATOON, Oct. 20 /PRNewswire/ - Canpotex Limited (Canpotex) has entered into a new three-year Memorandum of Understanding (MOU) with Sinofert Holdings Limited (Sinofert) covering a minimum of 3.15 million tonnes of potash at pricing to be negotiated every six months (January to June and July to December), based on market conditions.
The MOU covers the period January 1, 2011 to December 31, 2013, allows for growth in Chinese consumption and guarantees that Canpotex will maintain a market share over the three-year period that is equal to the greater of the agreed tonnage or one-third of the seaborne potash imports to China in each year.
"We are very pleased with this development. This new MOU reflects our continued joint commitment to the Chinese market where the pursuit of self-sufficiency in food production remains a priority," stated Mr. Dechka, Canpotex's President and Chief Executive Officer.
"This MOU also demonstrates our confidence in Sinofert as our long-term business partner in this critically important overseas market," Mr. Dechka added.
Canpotex - through market development initiatives, field demonstrations and other agronomic research activities - helps facilitate farmer education in China to improve yields through balanced fertilizer applications and other best farming practices.
The Government of Saskatchewan has been very supportive of the negotiations of the new MOU, and Mr. Dechka expressed Canpotex's sincere appreciation to the Government of Saskatchewan and, particularly, the Minister of Energy and Resources Bill Boyd for their part in helping to finalize the MOU.
Sinofert is China's largest integrated agricultural company.
Operating continuously since 1972, Canpotex is the exclusive offshore marketing company owned by the three Saskatchewan potash producing companies: Agrium Inc. (TSX andNYSE :AGU ), Mosaic Canada Crop Nutrition, LP, a subsidiary of The Mosaic Company (NYSE :MOS ), and Potash Corporation of Saskatchewan Inc. (TSX andNYSE :POT ).
Agrium supplies Canpotex with 9.28% of its potash product, Mosaic 37.11%, and PotashCorp 53.61%.
SOURCE Canpotex Limited