SASKATOON – Canpotex has signed a new three-year deal to supply potash to China. The memorandum of understanding (MOU) with Sinofert was announced in Saskatoon on Tuesday.
Under the MOU, Canpotex will supply a minimum of 1.9 million metric tonnes of red standard grade potash to Sinofert until the end of 2017. The deal also provides Canpotex exclusivity to Sinofert for red grade potash as long as minimum annual purchases are made.
“We have been supplying Saskatchewan potash to China since 1972, and with this agreement we will continue to be a leading supplier to this growing market,” said Steve Dechka, president and CEO of Canpotex.
“Canpotex is committed to making an important contribution to global food security and meeting China’s growing potash needs.”
The parties will negotiate pricing every six months based on market conditions. There is also an option for Sinofert to purchase an additional 800,000 metric tonnes yearly of other potash grades.
READ MORE: Canpotex signs potash deals with Indian companies
Last November, Canpotex signed a deal to provide millions of tonnes of potash to India.
Canpotex is the marketing arm of Saskatchewan’s three largest potash producers – PotashCorp, Agrium and Mosaic.
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