UPDATE 1-Canpotex signs three-year MoU with China’s Sionofert

* Deal for at least 3.15 mln tonnes of potash

* Pricing to be negotiated every six months

Oct 20 (BestGrowthStock) – Potash marketing company Canpotex said
it signed a three-year deal with China’s largest fertilizer
maker Sinofert Holdings (0297.HK: ) for at least 3.15 million
tonnes of potash, with pricing to be negotiated every six
months.

The memorandum of understanding extends through Jan. 1,
2011 to Dec. 31, 2013, Canpotex, the overseas potash marketing
arm of Potash Corp (POT.TO: ) Mosaic (MOS.N: ) and Agrium (AGU.TO: ),
said.

The deal guarantees that over the three-year period,
Canpotex will maintain a market share equal to the greater of
the agreed tonnage or a third of the seaborne potash imports to
China in each year.

“The Government of Saskatchewan has been very supportive of
the negotiations of the new MoU,” Canpotex said in a statement.

BHP’s (BHP.AX: ) $39 billion bid for Potash highlights the
fever pitch of the growth of Asian fertiliser demand and the
risk of a further spike in prices amid prospects of long-term
supply shortages of key crop nutrients such as phosphate and
potash.

Potash Corp supplies Canpotex with 53.6 percent of its
potash product, Mosaic 37.1 percent and Agrium about 9.3
percent.
(Reporting by Adveith Nair in Bangalore; Editing by Vinu
Pilakkott)

UPDATE 1-Canpotex signs three-year MoU with China’s Sionofert