UPDATE 2-Belarus may revive potash cooperation with Uralkali

Thu Jun 23, 2016 11:03am EDT
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(Adds stock reaction by rival producers, analyst's comment)

MINSK/MUMBAI, June 23 (Reuters) - The Republic of Belarus said it might cooperate with Uralkali, the first sign the two sides might work together since the Russian potash producer broke off an alliance in 2013 and triggered a drop in global prices.

Belarus President Alexander Lukashenko's comments on Thursday sent shares of rival potash companies higher as previous co-operation between the world's two biggest miners of the crop nutrient helped manage supplies and underpin prices.

Potash Corp of Saskatchewan and Mosaic Co gained 6 percent in New York, while Germany's K&S AG added 5 percent in Frankfurt.

Uralkali is the world's biggest potash producer, while state-controlled Belaruskali ranks second.

"New Uralkali shareholders are coming to me every month saying: 'Accept us,'" Lukashenko said at an event in Minsk, Belarus' capital. "We are not against it. Let's unite, on our conditions.

"Let's resume work and agree how much we will produce."

Lukashenko did not disclose his conditions. The previous joint venture was based in Minsk, which was then a crucial condition for Belarus and the main concern for Uralkali.

Uralkali declined to comment. Its major shareholder, Uralchem, was not available for comment.   Continued...