UPDATE 2-Belarus plans to boost potash sales to China

Fri Oct 25, 2013 8:15am EDT
 
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* BPC says to supply a "significant amount" per year under draft deal

* Overture to China follows break-up of Belarus-Russian potash venture

* BPC has been on sales drive since breakup of Uralkali JV

MINSK, Oct 25 (Reuters) - Belarus, trying to build up trading momentum after the collapse of a joint venture with Russia, plans to increase potash supplies to China, the world's biggest consumer of the crop nutrient, Belarus said on Friday.

Belarus' sales alliance with Russian potash giant Uralkali broke up in July, threatening to push down prices and causing an economic headache for Belarus, where potash exports account for 12 percent of state revenue.

The trading arm of state potash producer Belaruskali - Belarusian Potash Company (BPC) - said it had signed a three-year draft supply contract with China's Sinofert Holdings .

Sinofert, which is China's largest fertiliser supplier and distributor, confirmed the framework deal to Reuters.

The breakup of the alliance between Uralkali and Belaruskali has left North America's Canpotex Ltd, owned by Potash Corp , Mosaic Co and Agrium Inc, as the last global potash-trading partnership. Potash Corp expects Canpotex to sign a new contract with the Chinese firm in early 2014.

Attempts by Belaruskali and other producers to place additional volumes following the breakup could put further pressure on prices, Uralkali has said.   Continued...