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Bloomberg reported that North American potash producers saw a sharp increase in value of their shares after one of Uralkali OAO’s (MCX:URKA) mines ceased production due to hazardous conditions.
Bloomberg reported that North American potash producers saw a sharp increase in value of their shares after one of Uralkali OAO’s (MCX:URKA) mines ceased production due to hazardous conditions.
As quoted in the release:
Shares of North American potash companies jumped after the world’s largest producer of the crop nutrient halted one of its mines, a move that may lead to reduced global supplies and higher prices.
Potash Corp. of Saskatchewan Inc. rose as much as 6 percent in New York, the most intraday in two years. Mosaic Co. gained 4.4 percent and Agrium Inc. (AGU) 4.1 percent.
Russia’s OAO Uralkali said today it evacuated the Solikamsk-2 mine and initiated an emergency plan after detecting an increased flow of brine. Such a situation can be hazardous in the potash industry because water can dissolve potassium-bearing salts and weaken a mine’s structure. Flooding has opened up sinkholes at other Uralkali properties in recent years, curbing production.
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