Canpotex Enters Agreement with Sinofert

Canpotex Ltd. announced that it has signed a memorandum of understanding (MOU) with Sinochem Fertilizer Macao Commercial Offshore Ltd. (Sinofert) under which it will supply a minimum of 1.9 million metric tons of red standard-grade potash over the course of three years.

As quoted in the press release:

The MOU covers the period January 1, 2015 to December 31, 2017 and is designed to encourage future growth in new Canpotex product grades and new market regions in China as it provides exclusivity to Sinofert for Canpotex red standard grade potash only, provided Sinofert exercises the annual minimum purchase requirements.

Steve Dechka, Canpotex’s president and CEO, stated:

Canpotex is proud of its long-term trusting relationship with Sinofert, and this agreement demonstrates the confidence we continue to have in that partnership.  We have been supplying Saskatchewan potash to China since 1972, and with this agreement we will continue to be a leading supplier to this growing market. Canpotex is committed to making an important contribution to global food security and meeting China’s growing potash needs.

Click here for the full Canpotex Ltd. press release