Belarusian government proposes exchange of potassium fertilizer for consumer market

In order to improve the capacity of Belarus to develop state-owned potash fertilizers and develop new potash mines to replace depleted mines, the Belarusian government expects to obtain financing through the sale of shares. Belarusian First Deputy Prime Minister Xiemashko stated that the government hopes to raise 6 billion to 7 billion U.S. dollars from the sale of some Belarusian state shares of Belaruskali, and that the shares sold will account for about 25%.
According to reports by Belarusian media, if Belarus sells state-owned potash stocks, the most likely investors should be Chinese companies. The reason is that China is the largest potash importer for white potassium. If white potassium can be joined, long-term strategic alliances can be formed. White potassium company exports are stable. For the government to raise 6 billion to 7 billion U.S. dollars, some industry analysts believe that the offer is too high to meet the company's actual value. The White Russia government may be overly optimistic about the evaluation of the market value of white potassium because Potash Corp and Mosaic have a market value of US$250 billion and US$170 billion respectively, and the two companies far exceed their productivity and other fertilizer devices. White potassium company.
It is understood that in order to promote the transformation of Belarusian potash fertilizer as soon as possible, the government has been pursuing privatization reforms. On June 10, the Federal House of Representatives passed a bill, in which the second and last articles refer to the “removal of the mining of potassium from state monopolies”. The regulations on the scope of management have been passed, so that the Belarusian potash fertilizer company may in the future transition from a state-owned monopoly enterprise to a joint-stock company and a market-oriented company. In 1998, the Belarusian government enacted regulations that prohibited the privatization of state-owned enterprises.
It is understood that there were rumors in April that White Potassium and China National Chemicals had negotiated a plan to sell shares, but was later denied by white potassium. They stressed that at the time, they had contact but did not discuss the sale of shares. Shortly after this statement was issued, Deputy Prime Minister Zemashko disclosed the strategy of introducing partners into white potassium.
According to relevant sources, the content of white potassium and Chinese companies' negotiations is the possibility of holding 50% or less of the shares of white potassium, and whether the corresponding potash supply can be obtained each year after increasing the corresponding shares.
At present, Belarusian potash has 4 potash mines in the region of Soligorsk, with a total capacity of 9 million tons of potassium chloride. In 2008, it produced a total of 828 million tons of potassium chloride, but last year the output fell sharply to 4.16 million tons.
It is also known that with the depletion of the original potassium mines, White Potash hopes to raise funds as soon as possible to develop new mines to replace the original production capacity. At present, white potassium has been under construction in two underground mining mines, and each mine is expected to have a production capacity of 6 million tons of raw ore. The Krasnoslobodsky mine started production in May 2009 and the Berezovsky mine is scheduled to be completed in 2012. After the completion of the two potash mines, the total white potassium production capacity will not change substantially, and is mainly used to replace depleted mines.
Belarussian state-owned Potash Fertilizer Company owns 45% of Belarusian Potash Fertilizer, Ural Potash Corp owns 50% of BPC shares, and the remaining 5% is controlled by Belarusian Railway Company. BPC is the two companies' potash fertilizer export alliance companies.

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