Uralkali trumpeted the reviving world demand for potash as the Russian fertilizer group revealed a supply deal it deemed one of the biggest ever, with Yara International.
Belarusian Potash Company, an export joint venture between Uralkali and its Belarus-based peer Belaruskali, has agreed to supply Yara with more than 1m tonnes of potash every year from 2011 to 2015.
The price of the supplies will be set by a "combination of market indicators".
The extent of the contract, "one of the largest in the potash industry's history... demonstrates that the global potash market is recovering and that the demand for potash continues to grow", Uralkali said.
Spate of agreements
The deal is the latest in a series of high-profile supply agreements, although most of the headlines have been cornered by Canpotex, the North American export consortium, which in an October-November spree unveiled three potash deals in a week.
The agreements, with China's Sinofert, India-based Tata Chemicals and South Korea's Unid, totalled up to 6.7m tonnes.
Norway's Yara, while the top manufacturer of nitrogen, is one of the world's biggest importers of potash, which it requires for mixing into blended fertilizers, such as NPK products.
A Yara spokesman told Agrimoney.com that the pricing of the BPC deal was "market based" but declined to reveal further details of the terms.
BPC has previously been a major supplier to Yara, which also sources some potash from elsewhere, the spokesman added.