PDAC-Potash juniors look to importers for cash injections

Mon Mar 4, 2013 1:56pm EST
 
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* Big miners shelving projects as prices weaken

* Small players now look to fertilizer buyers

* Indian companies have strong interest in deals

* Karnalyte says closing in on second strategic partner

* Western eyes options; Encanto close to off-take

By Rod Nickel

TORONTO, March 4 (Reuters) - Undeveloped Canadian potash projects are drawing investment from a new and unexpected source, as buyers of the crop nutrient in India cross over to the industry's supply side.

The strong interest by Indian fertilizer companies in equity stakes and agreements to take a certain percentage of a supplier's production is a welcome development for junior miners that are not getting the same attention from senior potash producers that they did a few years ago.

China, the world's biggest potash consumer, is also exploring ways to secure supplies through juniors.   Continued...