April 3, 2012
Russia''s Acron may sell potash extraction permits in Canada
Through its subsidiary North Atlantic Potash Inc., Russia''s Acron may sell some permits to extract potash in Canada, Acron''s chairman Alexander Popov told reporters at a media briefing.
"We have two projects (in Canada) where we would like to stay... and there are several other areas which are up for sale," Popov said in the Russian town of Velikiy Novgorod in remarks cleared for publication on Monday (Apr 2).
North Atlantic sold eight potash licences to the Yankuang Group Corporation Limited of China for US$110 million last October.
It still holds 18 permits in the Prairie Evaporite potash deposit in Saskatchewan province in Canada, of which nine permits are included into a joint venture agreement with mining giant Rio Tinto.
Popov did not specify whether Acron wants to sell permits, which are a part of the agreement with Rio Tinto.
Popov added that Acron may boost its output in the first quarter despite production cuts at rivals'' assets as it expects the demand for mineral fertilisers to revive in the second half of 2012.
The market had been braced for a gloomy outlook after larger rivals Uralkali of Russia and Potash Corp <P OT.TO> of Canada warned of weak demand.
Popov expects the demand for nitrogen fertilisers to rise by 1.5% per year during the next several years and believes that high prices for food products will support global fertiliser prices in the second half of this year.
Acron holds 2.7% shares of Russian potash miner Uralkali with current market value of about US$634 million and can sell these shares as a single package if it needs money, Popov added.
Earlier Acron promised to sell these shares by parts during three years.