Sichuan Chemical Industry to Buy Potash Fertilizer from US
SHANGHAI, Oct 24, 2012 (Menafn - SinoCast Daily Business Beat via COMTEX) --Sichuan Chemical Industry Holding (Group) Co., Ltd. and Prospect Global Resources Inc. PGRX, a Denver-headquartered potash fertilizer producer, jointly announced that the two sides reached a USD 2 billion ten-year potash fertilizer purchase agreement.
Sichuan Chemical Industry will buy at least 500,000 tons of potash fertilizer, a quarter of output of Prospect Global Resources' potash fertilizer project in the west of the US. The US side considers the deal as the biggest potash fertilizer contract by both price and volume in history; it is a mutual guarantee partnership between the US mineral resources companies in development and in need of capital and buyers.
The potash fertilizer project is located in the Holbrook mine in Arizona; its potash fertilizer reserves are estimated to be the highest across the US and production life is nearly 40 years. The mine is predicted to come into operation at 2015 end or 2016 beginning.
Sichuan Chemical Industry is under administration of the State-owned Assets Supervision and Administration Commission of Sichuan Province; the company is majority shareholder of public companies like Sichuan Chemical Company (000155.SZ) and Sichuan Lutianhua Company (szse:000912). Chairman Chen Xiaojun showed that the agreement is much of long-term strategic importance for the company.
However, both sides decline to disclose how much each ton is sold at.
Source: www.nanfangdaily.com.cn (October 24, 2012)
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