Canpotex signs potash supply deals with Indonesia

Wed Sep 19, 2012 1:50pm EDT
 
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WINNIPEG, Manitoba (Reuters) - Canpotex, the offshore selling agency for potash mined in the Western Canadian province of Saskatchewan, has signed contracts to supply the growing Indonesian market with the crop nutrient for five years, Saskatchewan Premier Brad Wall said on Wednesday.

Wall said Canpotex, owned by miners Potash Corp of Saskatchewan, Agrium Inc and Mosaic Co, signed four contracts with an Indonesian consortium of buyers during Wall's trade mission to Asia.

Terms of the contracts were not released.

The Saskatchewan government said Indonesia's potash imports from the province have risen 85 percent during the past five years, as farmers fertilizer crops of palm, rice, and maize.

Saskatchewan holds an estimated 40 percent of the world's potash reserves.

"Indonesia is one of the most exciting, rapidly growing potash markets in the world and Canpotex is the largest supplier of potash to this important market," said Canpotex Chief Executive Steven Dechka, in a statement.

Canpotex, one of two major potash sales consortiums in the world along with Belarusian Potash Co, is widely expected to sign new contracts with Chinese and Indian buyers in the next couple of months.

(Reporting by Rod Nickel in Winnipeg, Manitoba; Editing by Peter Galloway)