The story so far; Multi-Billion dollar organisation Canpotex plans to build a new export terminal in Prince Rupert to ship their product to the Asian markets. Then the recession turns up and everything gets put on the back burner as international demand for potash collapses. Then, The largest member of Canpotex, The Potash Corporation of Saskatchewan became the target of a hostile takeover bid from Australian mining company BHP Billiton.
This week saw three announcements that can only be viewed as positive.
Firstly, the Canadian government, after a huge amount of pressure from every Province, blocked the potential sale to the Australian company. Secondly, Canpotex announced a $2.2 Billion sale to Sinofert of China. Thirdly, Canpotex announced a three year contract with Tata Chemicals of India at an undisclosed price but obviously worth a large sum of money.
So, the threats to the future of Canpotex have been removed and they are once again seeing demand rise for their product and are writing new business with the Asian market.
Given this hat-trick of glad tidings the question remains; will Canpotex announce that they will begin construction in Prince Rupert? I don't know for certain but the conditions to do so have never looked as favourable as they do right now.
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