Argus FMB Potash

Argus FMB Potash
Formerly FMB Weekly Potash Report
Issue 14-31 | Thursday 31 July 2014
market summary
Uralkali looks for price increase in China
Uralkali has signalled its price target for 2015 supply to
China, looking for a $35/t increase. This would suggest a
headline price of $340/t cfr.
price guide
Potash fertilizer prices
$/t
Contract
Spot
MOP – fob standard bulk
Vancouver fob
(+$10-25)
265**-275**
270*-315*
While negotiations are believed to be at an early stage - and
some have not fully completed discussions over second half
delivery - this is nevertheless an interesting signal to the
market: not too high, not too low.
NW Europe fob
(+$10-25)
265**
290*-325*
FSU fob
(+$10-25)
260***-265**
230*-320*
Jordan fob
(+$10-25)
280***-285**
280*-310*
Israel fob
(+$10-25)
280***-285**
S.E. Asia cfr
(+$15-20)
Elsewhere, the first of three tenders from Iran’s ASSC has
closed, however it appears that an award has not yet been
made. The tender was for 120,000t standard MOP - another,
closing 18 August, is for 120,000t granular MOP. The final
tender looks for 150,000t granular SOP and closes 13
August.
India cfr 180 days
(na)
280*-315*
310*-350*
322**
(premium for granular MOP)
MOP – cfr granular bulk
Brazil cfr cash
350*-360*
Europe cfr, €
285*-300*
SOP – fob bulk
A small tender in Nepal, for 7,500t bagged MOP, appears to
have been awarded to a trader sourcing product from Laos
Kaiyuan.
Following from the news last week that farmers in the US
were concerned about further price increases in the latter
half of the year, Intrepid has stated that “it does not expect
potash pricing to fluctuate meaningfully during the second
half of the year... as current potash pricing provides good
value to the farmer.”
US Gulf fob
(+$20-25)
595*-625*
NW Europe fob, €
(+€15-20)
420*-510*
* - Indicative price
** - Estimated netback from cfr contracts in India
*** - Estimated netback from cfr contracts in China
granular MOP cfR bulk
MOP Brazil
600
550
Highlights this week
Uralkali looks for $35/t increase in 2015 China contracts
350
500
Brazil $/t
Iran tenders for 240,000t MOP, 150,000t SOP...
375
325
450
300
...but there are doubts over availability
400
Tender in Nepal settled
350
India vessel lineup
300
29-Mar-12
275
250
13-Sep-12
07-Mar-13
22-Aug-13
13-Feb-14
31-Jul-14
Brazilian import data shows significant increase
Personnel news: ICL boss moves to Allana Potash;
management changes at Intrepid Potash
Copyright © 2014 Argus Media Ltd
View the methodology used to assess potash prices at
www.argusmedia.com/methodology. Your feedback is
always welcome at [email protected]
NW Europe Euro/t
▪
▪
▪
▪
▪
▪
▪
MOP NW Europe
hhh
Argus FMB Potash
Issue 14-31 | Thursday 31 July 2014
▪
Company news: Vale’s potash output continues to
decline; Compass Minerals 2Q results; Intrepid Potash’s
2Q results; Potash Ridge receives water discharge permit;
Highfield Resources narrows development area; Potash West
prospects in Germany; South Boulder Mines raising $1.85mn
ASIA
China
Uralkali announced earlier this week that it would look for a
10pc price increase for supply to its contractual customers
in 2015. The target is for a headline price of $340/t cfr.
Evidently it is early days for negotiations, however the
statement will no doubt cause ripples in the market.
Further to our report last week that Qinghai Salt Lake
Company had lowered its prices by RMB100-150/t, there
have been suggestions that other domestic producers are
doing the same.
Canpotex was unwilling to comment on the public assertion
by Potash Corp that Canpotex would be selling 1.2mn tonnes
to Sinofert this year - which suggests a further 500,000t to
be delivered in the second half.
It is understood that other producers are to deliver
significant tonnage in the second half, with at least a
further 1.65mn tonnes believed to have been confirmed
already. For all parties the price is thought to rollover.
Following from last week’s report on the typhoons, it
appears that port stocks of MOP largely escaped damage
from both typhoons.
India
The tables across and on the next page show that a total of
1.7mn tonnes has been delivered, or is on its way, to Indian
customers against this year’s contracts. Argus FMB assesses
that approximately 3.9mn tonnes firm was agreed total.
Nepal
The tender announced by Agricultural Inputs Company
(AICL) on 06 June for delivery of 7,500t standard MOP in
50kg bags is believed to have been awarded to a Dubaibased trader sourcing product from Laos Kaiyuan.
Preliminary indications are that the prices offered were (for
delivery to warehouse):
The tender specifies that an average would be taken,
suggesting a final price of $400.40/t delivered.
India: MOP shipments so far and scheduled against 2014/15 contracts
Seller/
Vessel
Tonnes Loadport Disport
Arr.
Buyer
APC
IPL
Ince Pacific
18,000 Aqaba
Kandla
10.4
Zuari
Fu Rong Song
11,700
Aqaba
Goa
26.5
Zuari
Fu Rong Song
15,000 Aqaba
Mundra
29.5
IPL
Ras Ghumays 1 27,800 Aqaba
Mundra
3.6
IPL
Senanur Cebi
18,000 Aqaba
Kandla
29.6
KrishnIPL
Aurora SB
5,000
Aqaba
27.6
patnam
IPL
Aurora SB
27,000 Aqaba
Kakinada
2.7
Zuari
Erlyne
15,000 Aqaba
Goa
12.7
Zuari
Erlyne
12,500 Aqaba
Kandla
16.7
IPL
Bulk Argentina 18,000 Aqaba
Kandla
22.7
IPL
Daxia
18,000 Aqaba
Mundra
07.8
Zuari
Rome trader
25,000 Aqaba
Goa
10.8
Total APC 211,000
BPC
IPL
Tu Qiang
37,300
Klaipeda Kandla
12.5
IPL
JS Danube
27,500
Klaipeda Gangavaram 19.5
IPL
JS Danube
27,500
Klaipeda Paradip
22.5
IPL
Chios Sunrise
38,499 Klaipeda Tuticorin
30.5
RCF
Antaeus
35,000 Klaipeda Mumbai
19.6
IPL
Lord Ali
31,824
Klaipeda Vizag
27.6
Chambal Arrilah 1
30,000 Klaipeda Kandla
30.6
IPL
Rochester Castle 35,000 Klaipeda Paradip
8.7
IPL
Emily Manx
37,357
Klaipeda Paradip
30.7
Cosco Jing Gang 30,000 Klaipeda Mumbai
RCF
08.8
Sham
Total BPC 329,980
Canpotex
TCL
Belnor
15,000
Vancouver Kakinada
14.5
CIL
TCL
PPL
TCL
Zuari
CIL
PPL
TCL
CIL
TCL
Zuari
IPL
TCL
CIL/
Chambal/
TCL
TCL
Grand Pioneer
Grand Pioneer
Ocean Vergo
Ocean Vergo
Ocean Vergo
Bulk Pegasus
Bulk Pegasus
Bulk Pegasus
New Venture
New Venture
New Venture
Turicum
Turicum
28,115
17,535
35,800
20,825
21,779
23,100
15,000
18,817
37,595
15,000
15,000
33,000
19,194
Vancouver
Vancouver
Vancouver
Vancouver
Vancouver
Vancouver
Vancouver
Vancouver
Vancouver
Vancouver
Vancouver
Vancouver
Vancouver
11.6
13.6
16.6
27.6
27.6
30.6
3.7
5.7
11.7
11.7
11.7
18.7
26.7
Aris Tidis
48,500
Vancouver Kakinada
Birgunj : $392.50/t
Birat Nagar : $403.50/t
Bhairhawa : $405.20/t
Copyright © 2014 Argus Media Ltd
Page 2 of 9
Kakinada
Haldia
Gangavaram
Kakinada
Kakinada
Kraikal
Paradip
Haldia
Kakinada
Kakinada
Kakinada
Vizag
Haldia
Aris Tidis
20,471
Vancouver Kandla
Total Canpotex 384,731
14.8
18.8
Argus FMB Potash
Issue 14-31 | Thursday 31 July 2014
India: MOP shipments so far and scheduled against 2014/15 contracts
Seller/
Vessel
Tonnes Loadport Disport
Arr.
Buyer
ICL/DSW
IPL
Federal Franklin 21,788
Eilat
Mangalore 22.4
IPL
Federal Franklin 22,212
Eilat
Cochin
25.4
IPL
Vishva Vijeta
22,819
Eilat
Kandla
8.5
IPL
Vishva Vijeta
22,811
Eilat
Tuticorin
10.5
IPL
Kong Que Song
25,000
Eilat
Kandla
20.5
KrishnaIPL
Star Reliance
39,270
Eilat
4.6
patnam
CIL
Vishva Vikas
20,030
Eilat
Kakinada
19.6
IPL/RCF Matumba
37,000
Eilat
Mundra
26.6
Total ICL/DSW 210,930
Uralkali
Zuari
Kallirol K
29,700
St. Petes Mangalore 14.4
PPL
AEC Belief
20,000
St. Petes Gangavaram 5.5
PPL
AEC Belief
11,819
St. Petes Paradip
9.5
IPL
Cornith
30,200
St. Petes Vizag
28.5
IPL
Minanur Cebi
31,940
St. Petes Vizag
7.6
Shriram Xo Lion
33,000
St. Petes
Mundra
10.6
Zuari
Deepak
IPL
IPL
Shriram
Chambal
IPL
PPL
IPL
Zuari
Zuari
MTPL/
MMTC
Cyan Phoenix
Andalucia
African Cendane
Nord Taipei
African Robin
Thebes
Atlantic Tramp
Sea Balsen
Skomvaer
Pontonostos
Pontonostos
33,000
33,000
24,464
31,500
30,000
30,000
30,361
25,028
56,066
15,000
10,000
St. Petes
St. Petes
Kavakaz
St. Petes
St. Petes
St. Petes
St. Petes
Ventspills
Kavakaz
St. Petes
St. Petes
Mangalore
Kandla
Chennai
Cochin
Mundra
Kandla
Tuticorin
Paradip
Kandla
Kandla
Mangalore
10.6
16.6
20.6
26.6
25.6
30.6
2.7
10.7
13.7
17.7
20.7
Bene
38,000
Kavakaz
Gangavaram 22.7
MTPL/
MMTC
Shah
31,700
Kavakaz
Tuticorin
25.7
Zuari
Zuari
Pontonostos
Pontonostos
15,000
10,000
St. Petes
St. Petes
Kandla
Mangalore
17.7
20.7
MTPL/
MMTC
MTPL/
MMTC
Bene
38,000
Kavakaz
Gangavaram 22.7
Shah
31,700
Kavakaz
Tuticorin
25.7
IPL
Alexandrit
32,999
Kavakaz
Vizag
05.8
Total Uralkali 577,777
GRAND TOTAL 1,714,418
MOP SE Asia
550
MOP Vancouver
500
450
hhh
400
350
300
250
29-Mar-12
13-Sep-12
07-Mar-13
22-Aug-13
13-Feb-14
31-Jul-14
middle east
Iran
Iran’s ASSC has issued a slew of tenders in June and July.
▪
▪
▪
A tender for 120,000t (±5pc) standard MOP, which closed
on 26 July
A tender for 150,000t (±5pc) granular SOP, bids to be
opened 13 August
A tender for 120,000t (±5pc) granular MOP, bids to be
opened 16 August
The results of the tender for standard MOP are not yet
known. Market participants suggest that it is unlikely to be
awarded to FSU producers. Canpotex did not participate.
The SOP tender requests five 30,000t vessels to ship during
September, October and November. As reported previously,
there are no suppliers believed to have sufficient SOP to
supply the full amount requested by ASSC.
Europe
Malaysia Indonesia
The markets here are relatively quiet, with little business
concluded during the Islamic festival of Eid-al-Fitr. Many
producers are optimistic that prices may firm slightly in
the weeks to come, though it is clear that there has been
business done recently within the region of $300-310/t cfr.
Copyright © 2014 Argus Media Ltd
standard mop cfr comparison
The markets here have been thinly traded, and many
participants are on holiday. Producers are still looking to
move prices up €10-15/t across the markets.
Page 3 of 9
Argus FMB Potash
Issue 14-31 | Thursday 31 July 2014
Argus FMB Potash Sales Selection
Origin
Seller
Buyer
Destination
’000t
$/t bulk
Shipment
FSU/Russia
Uralkali
BADC
Bangladesh
30sMOP
formula
Jul
FSU/Russia
Uralkali
n.a.
Malay/Indo
50sMOP
market
Jul
FSU/Russia
Uralkali
n.a.
Malaysia
25sMOP
market
Jul
FSU/Russia
Uralkali
n.a.
Colombia
sMOP
c.340 cfr
Jul
FSU/Russia
Uralkali
n.a.
Colombia
gMOP
c.350 cfr
Jul
FSU/Russia
Uralkali
n.a.
Mexico
gMOP
360 cfr
Jul
various
various
Petrokimia Gresik
Indonesia
sMOP
c.310 cfr
Jul-Dec
Jordan
APC
n.a.
E. Africa
2gMOP
380 cfr
Jul
Jordan
APC
n.a.
E. Africa
2sMOP
360 cfr
Jul
various
various
private buyers
Bangladesh
200sMOP
c.330 cfr
Jul-Dec
Germany
K+S Kali
n.a.
Brazil
gSOP
750 cfr
May/Jun
FSU/Russia
Uralkali
big buyers
Brazil
gMOP
350 cfr
Jun
NORTH AMERICA
Canada United States
The market here is tight and thinly traded. Fresh import
barges are not being offered to the market and are already
spoken for. Most recent barges were priced at $365-370/st
fob Nola. Regular deliveries of Russian and Israeli product
are expected to continue as usual, with no impact on
Russian imports from latest round of US sanctions.
There has been no further talk of a price increase by
producers after the concerns raised over the last few
weeks about declining crop prices. Intrepid Potash stated
in its quarterly results that it saw no need for significant
fluctuations either up or down in pricing for the rest of the
year.
On the SOP side, Compass Minerals has suggested a price
increase might be in order for US SOP customers in the
latter half of the year, though the extent is not yet clear.
Production suspended at Vanscoy
Agrium has suspended potash production at its Vanscoy,
Saskatchewan, mine, following an incident late last week
which impacted the hoist in the shaft.
Copyright © 2014 Argus Media Ltd
The company said it is assessing the damage and possible
duration of the outage and hopes for more clarity by week’s
end. It is not yet clear if this might impact turnaround times
for the upcoming maintenance scheduled for September.
Vanscoy has been undergoing expansions with a full ramp up
expected to increase production capacity to 2.8mn tonnes/
yr by 2017. Current capacity at the mine is 2.035mn t/yr.
LATIN AMERICA
Brazil
Producers are keen to reiterate that they expect to make
new sales here at the $360/t cfr level, as there is likely to
be less product available in the coming months.
January-June arrivals data
The latest data from the syndicate show a 27pc rise in
imports in the first six months of the year relative to 2013.
In real terms, this is an increase of nearly 1mn tonnes.
Page 4 of 9
Argus FMB Potash
Issue 14-31 | Thursday 31 July 2014
SNAPSHOT - world POTASH prices/netbacks
sMOP spot
$270-315/t fob
Vancouver
gMOP spot
€280-290/t cif Belgium/Netherlands
sMOP spot
$280-315/t fob
Middle East
gMOP spot
$365-370/st fob
barge Nola
sMOP contract
$305/t cfr China
gMOP spot
$350-360/t cfr
Brazil
sMOP = standard
gMOP = granular
t
= tonne
st
= short ton
its New Brunswick facilities - were 84pc lower; perhaps due
to the lay-offs announced in December 2013.
Canpotex remains the largest supplier to Brazil by volume,
delivering 1.2mn t in the first half of the year - up 4pc year
on year. Deliveries from Potash Corp - believed to be from
Brazil: MOP arrivals Jan-June (tonnes)
Supplier
2012
2013
2014
2014/2013
K+S Kali
627,622
722,449
444,200
-39%
Canpotex
640,107
1,169,711
1,216,837
4%
PCS
185,449
242,063
39,910
-84%
26,917
46,148
64,801
40%
852,473
1,457,922
1,321,548
-9%
Mosaic
Canada total
Cleveland
-
29,155
-
-100%
47,919
26,402
98,938
275%
343,565
222,912
221,961
-0.4%
-
4,000
-
-100%
ICL total
391,484
324,137
385,467
19%
SQM
129,676
227,781
289,030
27%
-
-
25,205
∞
Iberpotash
DSW
Rotem
Ameropa
BPC/Uralkali
1,157,355
905,854
1,109,987
23%
Keytrade
-
-
25,000
∞
Uralkali
-
-
954,954
∞
Indagro
-
-
81,339
∞
1,157,355
905,854
2,171,485
140%
3,158,610
3,638,143
4,611,730
27%
FSU total
TOTAL
The significant change has been in the proportion of
deliveries arriving from Belaruskali and Uralkali. In times
past, when the two companies coordinated exports through
BPC, FSU deliveries averaged 35pc of the total. In the first
half of this year, FSU deliveries of 2.17mn t were 47pc of the
total. BPC delivered 1.1mn t and Uralkali delivered 955,000t.
It is understood that one factor in the steadiness of Brazilian
pricing over the last few months has been the competition
for market share between producers.
Brazil MOP imports
1.0
0.8
0.6
0.4
0.2
— Syndicate
0.0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2014
Source: Syndicate (NB Uralkali split from BPC mid-2013)
Copyright © 2014 Argus Media Ltd
sMOP spot
$310-350/t cfr
S.E. Asia
Page 5 of 9
2013
5 yr average
Argus FMB Potash
Issue 14-31 | Thursday 31 July 2014
Deliveries from ICL were 19pc higher, totalling 385,000t in
the first half. Approximately a quarter of this is recorded as
being delivered from ICL’s Spanish facilities, up 275pc from
last year.
GRANULAR mop cfr BRAZIL
MOP Brazil
600
550
SQM delivered 289,000t to Brazil in the first half, up 27pc
from 2013.
500
Personnel News
450
UK Ethiopia
400
ICL boss moves to Allana Potash
hhh
350
Mr Phil Baines, currently managing director of Cleveland
Potash, has been appointed project manager of Allana
Potash effective 1 September 2014.
300
29-Mar-12
13-Sep-12
07-Mar-13
22-Aug-13
13-Feb-14
31-Jul-14
US
Intrepid Potash president stepping down
David Honeyfield, currently president and chief financial
officer of Intrepid Potash, is resigning effective 29 August.
His position will be filled by Robert Jornayvaz III, currently
executive chairman (and largest shareholder).
Mr Honeyfield became president - and responsible for the
day-to-day running of the company - in May 2010, taking
over from Mr Jornayvaz who moved to focus on longer-term
matters for Intrepid.
Mr Jornayvaz returns to the position he held for the decade
after the company’s creation in 2000. He commented,
“I thank Dave for his outstanding execution of Intrepid’s
strategy during a period of great change. We have built
a stronger Intrepid through the capital investment stage
Dave oversaw. In returning to the CEO role, I have as my
top priorities continued focus on operating and optimizing
our new assets, further development of our long-term
growth strategy, and maximizing our margin and cash flow
generation opportunities on every ton of product we sell.”
Join us for the Argus Autumn Party
Thursday 11 September 2014
The Roof Gardens, 99 Kensington High Street, London W8 5SA (Entrance on Derry Street) from 6.30pm
Entrance is by barcoded invitation only - RSVP to receive your confirmation and code
RSVP: Shan Murad Tel: +44 (0) 20 7780 4200 Email: [email protected]
Copyright © 2014 Argus Media Ltd
Page 6 of 9
Argus FMB Potash
Issue 14-31 | Thursday 31 July 2014
Company News
contract with MOP producers (the company uses MOP to
top-up its pond-based feedstock).
Brazil
Vale’s potash output continues to decline
Intrepid Potash’s 2Q results
Production statistics released by Vale show that potash
output from Taquari-Vassouras, located in Sergipe state,
totalled 96,000t in the second quarter 2014, down 15pc
from 2013. The total production in the first half was
206,000t, down 12pc from 2013 due to declining grades and
maintenance stoppages.
Intrepid posted a profit of $5.6mn on sales of $111mn for
the second quarter. Sales revenue was 20pc higher than
the same quarter of 2013, however profits were halved because of reduced potash prices.
The Taquari-Vassouras mine is nearing the end of its working
life. It is the only significant potash production site in Brazil,
and at current rates of depletion will be exhausted in 2018.
Vale is in the earliest stages of development for a new
Brazilian solution mine, also in Sergipe state, project-named
Carnalita, as well as its Kronau project in Saskatchewan.
The company is seeking joint venture partners before
proceeding with development; as with some of the other
majors the company notes that it has not decided whether
or not it will proceed with development (though does not
expect to make a decision until 2015 at the earliest).
US
Compass Minerals 2Q results
The Utah-based SOP producer, Compass Minerals, posted a
loss of $700,000 on sales of $187mn for the second quarter.
The loss is attributed to expenses of $7mn resulting from
early redemption of debt in June.
Plant nutrition sales totalled $66mn in the second quarter,
up nearly 50pc from 2013. High demand from customers
for SOP, combined with the acquisition of Wolf Trax are
said to be the key factors here. Wolf Trax products sell at a
premium to SOP, and the increase in the average sale price
- up $32/t from 2013 to $670/t - reflects this. The average
selling price for SOP products was in line with 2013 levels roughly $638/t.
The company expects plant nutrition product sales will
reach 175,000t to 185,000t in the second half of 2014, and
the blended average selling price for these products is
expected to be between $725-750/t. Much of this rather
significant average price increase is expected to come from
increased sales of Wolf Trax products, though the company
did forecast some “price lifts” for SOP customers.
Potash sales totalled 235,000t, up 28pc from 2013. The
average price achieved was $363/t. Production totalled
190,000t - up 4pc from 2013. As with other north American
producers, Intrepid has focussed on warehousing product
close to consumers to quickly respond to demand.
Sales of Trio, its langbeinite product, totalled 62,000t in
the second quarter, up from 35,000t in 2013. Production of
Trio slowed, totalling 43,000t in the second quarter against
50,000t the previous year. The emphasis on Trio sales has
shifted to the US, where Intrepid makes greater netbacks. It
should also be noted that PCS Sales handles the sale of Trio
outside of the US and Canada.
The company’s HB Solar solution mine is expected to be
see final commissioning work in the second half of 2014. So
far this year 31,000t has been produced from the mine, and
Intrepid expects to produce 50,000-100,000t from the mine
over the full year.
In response to the sentiment expressed by many at a recent
industry conference, Intrepid states that “it does not expect
potash pricing to fluctuate meaningfully during the second
half of the year in response to current corn and soybean
pricing as current potash pricing provides good value to the
farmer.” Like its customers, it seems Intrepid is not looking
for a significant price increase this year.
Potash Ridge receives water discharge permit
Potash Ridge Corporation has announced that the Utah
Division of Water Quality (UDWQ) issued the Ground Water
Discharge Permit for the company’s Blawn Mountain SOP
project.
The company’s capacity expansion at Ogden is not expected
to see material results until the second half of 2015.
On 17 June, 2014 the Corporation announced that UDWQ
had issued a Public Notice of Intent to Issue Ground Water
Discharge Permit. This initiated a 30-day public comment
period that ended on July 16, 2014. No comments or
objections were received during this period. As such, UDWQ
has issued the final Permit to Potash Ridge. The receipt of
the Permit represents another major permitting milestone
for the Project.
In reply to a question asked on the earnings call, the
company stated that it would consider a long-term supply
The next step (and final permitting stage) is an air permit.
However, the company is low on cash and is seeking funds
Copyright © 2014 Argus Media Ltd
Page 7 of 9
Argus FMB Potash
Issue 14-31 | Thursday 31 July 2014
for the project’s feasibility study and other working capital
requirements. Nevertheless, Potash Ridge rightly notes that
supply in the SOP market is currently very tight and that
there is room for a new entrant into the market.
Spain
Highfield Resources narrows development area
Highfield Resources has divided its Javier Potash Project in
Spain into the shallow Muga and the deeper, higher grade
Vipasca potash projects.
The focus will be on developing the relatively shallow
sylvinite mineralisation at Muga as its initial mine target
with construction targeted to begin in 2015.
Highfield’s Muga, Vipasca, Pintano and Sierra del Perdón
potash projects are located in the Ebro potash producing
basin in Northern Spain.
The company has received commitments totalling $32
million for its June share placement. It expects to carry out
an Extraordinary General Meeting on 16 September 2014 to
approve the second tranche of this placement.
Argus FMB is expanding its London-based
fertilizer editorial team
We are looking for bright, confident and determined
individuals with an inquisitive mind to join our fastgrowing London team. You will be responsible for
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Potash West - an Australian junior - has acquired a 25pc
stake in a joint-venture company in Germany for $100,000.
The JV company - East Exploration - is seeking licenses to
prospect for potash in the south Harz region of Thuringia
state. The partners in the joint venture are not known at
this time.
You will be a graduate with an understanding of numbers
and the ability to write. You will need to be sufficiently
confident to handle a variety of contacts with firmness,
tact and diplomacy, and you will learn to share market
information with trusted contacts as you build and
maintain relationships with them. You will be expected
to grow into a role where you will provide analysis and
insight reflecting your deepening understanding of the
market.
Potash West can acquire further 25pc stake in East
Exploration by funding the application and analysis of
historical exploration data for a further $200,000; a further
5pc, and thus majority, stake can subsequently be acquired
for a further $50,000.
If you are interested in joining a dynamic and fast-growing
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and your CV to Gemma Crozier, HR Manager at: gemma.
[email protected]. Or call 44 207 780 4344.
Deadline for application: Monday 1 September 2014.
Germany
Potash West prospects in Germany
The regions targeted by East Exploration are roughly 55km
each from K+S’ production sites around Werra.
Potash West’s more advanced project, in Australia’s
Dandagaran Trough, has ore containing phosphate rock and
glauconite; the company initially intended to exploit the
glauconite to produce various products, including the SOP
and SOPM but refocussed on the phosphate element in 2013.
Copyright © 2014 Argus Media Ltd
Eritrea
South Boulder Mines raising $1.85mn
Through a placement of 10mn shares at a price of $0.185/
share to a Hong Kong-based investor, South Boulder is
looking to raise $1.85mn. The investor, Kam Lung Investment
Development Company, will pay a 13pc premium to the
previous 30 day volume weighted average price. Perhaps
more importantly, Kam Lung will be working towards
securing an offtake agreement for SOP produced from the
Colluli project.
Page 8 of 9
Argus FMB Potash
Issue 14-31 | Thursday 31 July 2014
Kam Lung will also receive 8mn options, exercisable at
$0.35/share, subject to success in securing an offtake
agreement. This must be done within 6 months of
completion of the pre-feasibility study, currently scheduled
for 2015.
Potash freight
Loading
Destination
Vancouver
Red Sea
China
WC India
Rate ($/t)
Low/High
Tonnage
60-65
25-30
18
22
20
24
South Boulder Mines Managing Director, Paul Donaldson said
“we are pleased to have Kam Lung Investment Development
Company as part of our register as a significant shareholder.
They have expressed a strong desire to support the success
of the project and as part of that commitment are now
helping the Colluli Mining Share Company (CMSC) secure
offtake arrangements for potassium sulphate produced from
the resource.
Kam Lung Investments is a subsidiary of Hong Kong and
Shanghai Hotels, understood to be controlled by the
Kadoorie family.
Argus FMB Potash Methodology
Argus FMB Europe Fertilizer 2014
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Methodology can be found at:
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Argus FMB Potash is published by Argus Media Ltd.
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