Recently, "Daily Economic News" learned that a 50-million-kilometer-potential potassium mine in New Brunswick, Canada, will be tendered two months later.
New Brunswick is located on the coast of Eastern Canada and borders on Maine in the United States. It contains a lot of mineral resources such as lead, copper, potassium phosphate, iron and zinc. Canada is a major exporter of potash, and New Brunswick is the main location of another potash mine in addition to Saskatchewan.
In August of last year, BHP Billiton made an offer for Canada Potash Corp. Potash Corp. Canada is the world's largest potash fertilizer company. In 2009, its potash fertilizer production accounted for about 11% of global production, and its production capacity accounted for 20% of global potash fertilizer production capacity. Because of fears that the potassium mine will become another iron ore, Chinese companies have been nervous for a time.
For this tender in New Brunswick, the former International Fertilizer Industry Association’s Wu Shaihai stated that from the perspective of China’s proven potassium reserves and Chinese agricultural demand, Chinese companies can participate in bidding. However, in order to conduct in-depth research on the mineral deposits, blind bidding at high prices has little significance.
Xu Yi, an East Iger industry analyst, said that although 50 million tons of reserves are not very large in Canada, given that China’s potash fertilizer producer Salt Lake Potash’s annual output is 2 million tons, this calculation will have a certain attraction for Chinese companies. .
However, the potash production cycle is quite long, and 50 million tons is only proved reserves. The amount of exploitation that can be really extracted and the cost can be tolerated will often be a discount. The industry believes that this potash project will not have much impact on the Chinese potash market in the short term. This article Source: Daily Economic News
New Brunswick is located on the coast of Eastern Canada and borders on Maine in the United States. It contains a lot of mineral resources such as lead, copper, potassium phosphate, iron and zinc. Canada is a major exporter of potash, and New Brunswick is the main location of another potash mine in addition to Saskatchewan.
In August of last year, BHP Billiton made an offer for Canada Potash Corp. Potash Corp. Canada is the world's largest potash fertilizer company. In 2009, its potash fertilizer production accounted for about 11% of global production, and its production capacity accounted for 20% of global potash fertilizer production capacity. Because of fears that the potassium mine will become another iron ore, Chinese companies have been nervous for a time.
For this tender in New Brunswick, the former International Fertilizer Industry Association’s Wu Shaihai stated that from the perspective of China’s proven potassium reserves and Chinese agricultural demand, Chinese companies can participate in bidding. However, in order to conduct in-depth research on the mineral deposits, blind bidding at high prices has little significance.
Xu Yi, an East Iger industry analyst, said that although 50 million tons of reserves are not very large in Canada, given that China’s potash fertilizer producer Salt Lake Potash’s annual output is 2 million tons, this calculation will have a certain attraction for Chinese companies. .
However, the potash production cycle is quite long, and 50 million tons is only proved reserves. The amount of exploitation that can be really extracted and the cost can be tolerated will often be a discount. The industry believes that this potash project will not have much impact on the Chinese potash market in the short term. This article Source: Daily Economic News
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