BELARUS NEWS AND ANALYSIS

DATE:

28/07/2006

BKK and Uralkaliy to increase a potassium price for Chinese companies.

The Belarussian Potassium Company (BKK, Soligorsk, Belarus) and Uralkaliy OJSC (Berezniki, Russia) have signed an agreement covering potassium chloride supplies, with Chinese companies Sinochem and CNAMPGC, as BKK reports.

Under the agreement, the price of a ton of potash fertilizers delivered by BKK to the Chinese companies, is increased by $25 against last year price.

The contracts will be valid till December 31, 2006.

BKK considers it to be important positive news for the global potassium market, because the agreement will considerably facilitate the pricing for other potassium consumers in China and for other foreign partners of BKK.

BKK was founded in 2005 by Belaruskaliy and Uralkaliy on a par basis, for the purpose of exports of potassium fertilizers.

Uralkaliy develops the Verkhnekamskoye field of potassium-magnesium salts, the second by the world's reserves. The Company produces some 10% of the world's potassium fertilizers. The main consumers of its products are China, India, Brazil, and Malaysia. In 2005, the Company's earnings totaled RUB 20.721 bn, its net income was RUB 7.639 bn.

Source:

http://www.akm.ru/eng/news/2006/july/28/ns1750914.htm