Exchange Database

China inks potash deal with US miner

A State-owned Chinese fertilizer company has signed a 10-year potash supply agreement with Prospect Global Resources Inc, a Denver-based company, guaranteeing China a steady flow of the crucial fertilizer. The deal with Sichuan Chemical Industry Holding Co, worth more than $2 billion, is part of a Chinese trend to partner with small mining companies hungry for capital to develop their land. Potash is one of the most-important fertilizers for farmers to apply, after nitrogen and phosphate.
Outcomes: 
Prospect's mine in Holbrook, Arizona, is estimated to have the largest potash reserves in the United States with nearly 40 years of supply, but the company has yet to obtain financing or regulatory permits to develop it. The mine is not expected to open until at least 2015.
Source: 

http://usa.chinadaily.com.cn/business/2012-10/22/content_15836896.htm

Government?: 
No
Type of Exchange: 
business
Partners: 
Prospect Global Resources Inc
Sichuan Chemical Industry Holding Co
Participants (Types): 
business people
Exchange Date: 
Monday, October 22, 2012
Continuing: 
No
Location: 
Holbrook, Arizona
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