JERUSALEM--Shares of leading potash supplier Israel Chemicals
Ltd. (ICL.TV) were slightly higher Thursday after the company said
it had signed a three-year deal to provide 3.3 million metric tons
of potash to a group of Chinese companies, including Zhejiang AMP
International, Guangdong Tihane Agriculture Materials Ltd., and
Asia Mineral Processing Co.
The price of the potash to be supplied in the contract will be
based on current market prices for similar deals, ICL said.
Earlier this week Russian potash producer Uralkali (URKA.RS)
said it had agreed to sell a million metric tons of potash to
Chinese companies for $400 a ton.
ICL said it will begin supplying the Chinese companies
immediately, and has agreed to sell them 660,000 tons of potash
during the first half of this year, which would amount to about
$264 million, based on the price of the Uralkali deal.
Potash, a potassium-derived compound used in agricultural
fertilizer, is produced in large quantities from the minerals in
the Dead Sea, which borders Israel, Jordan and the West Bank.
In October, Israel Corp., ICL's biggest shareholder, said it was
in talks with Potash Corp. of Saskatchewan Inc. (POT.T), the
world's largest fertilizer producer, to increase the Canadian
company's 15% stake in ICL, or merge with the Israeli potash maker.
The government, which owns special shares in ICL, would have to
approve such a deal because it could involve giving a foreign
company control over Israel's natural resources. It has said it
would consider an official offer.
At 1108 GMT, shares of ICL were up 0.06 shekels, or 0.13%, at
ILS47.41 ($12.81), in a lower Tel Aviv market.
Write to Sara Toth Stub at saratoth@gmail.com
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