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Belarusian Potash Company Inks Five-Year Supply Deal with China
May. 11, 2015 10:00AM PST
Potash InvestingReuters reported that China and Belarusian Potash Company have signed a deal that will see BPC supply 4 million tonnes of the fertilizer over five years at a price tag of approximately $1.3 billion based on current industry prices, as well as extended a loan totaling $1 billion to Belarusian banks.
Reuters reported that China and Belarusian Potash Company have signed a deal that will see BPC supply 4 million tonnes of the fertilizer over five years at a price tag of approximately $1.3 billion based on current industry prices, as well as extended a loan totaling $1 billion to Belarusian banks.
As quoted in the market news:
A potash supply memorandum, also signed after the bilateral meetings, agreed shipments of 4 million tonnes over five years and was worth around $1.3 billion based on current prices, Belarussian Potash Company said in a statement.
“The concrete price level will be the subject of further negotiation,” it said.
Cash-strapped Belarus reached an unexpected agreement with China in March over 2015 prices for the crop nutrient potash, undercutting Russian and North American rivals, who were negotiating for higher rates.
One loan, worth $700 million over 15 years, is to Belarus’s state-controlled Development Bank with an effective interest rate of no more than 4.7 percent. The second loan went to state-owned Belarusbank.