Close

Welcome back to Stockhouse
Member Sign In

Email or Username:
Password:
Close

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.

Enter your email address:
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.

Saskatchewan premier urges calm over developments in potash industry

Canadian Press, The Canadian Press
1 Comment| August 1, 2013


By The Canadian Press

REGINA - Saskatchewan Premier Brad Wall is urging people to remain calm about the situation facing the potash industry this week.

The stocks of potash producing companies around the world have been plummeting amid fears of a price war after a Russian company threatened to pull out of a marketing consortium and undercut prices on the world market.

Some financial analysts are postulating that it could have a ruinous impact on Saskatchewan's economy.

But Wall said Wednesday it's too soon to tell what impact the situation will have on the province.

"I think it's important we not overreact to the news, as significant or important as it is," Wall said.

He admitted that if potash prices drop the government's spending will be tighter. The budget for this fiscal year is expecting more than $500 million in potash royalty revenues but Wall reminds people that only amounts to five per cent of provincial revenues.

As for the impact it may have on new mining projects and expansions that companies have announced for Saskatchewan, he referred specifically to PotashCorp.

"Potash companies have been saying that expansions will actually continue, not withstanding the news yesterday."

The impact on BHP Biliton's Jansen mine project is still unclear as the company has yet to respond.

K+S, a German company which has begun work on a new mine in Saskatchewan, also did not return a request for comment.

Tags: AGRICULTURAL INPUTS

Rate this article
5 stars
v
Usefulness

Clarity

Credibility

Comments

sherbrooke1
Mr. Wall has a background in Government or Public Policy. Let's call it "Government studies" Investors say the Russian company is the worlds largest and lowest cost producer. They broke out of the Cartel partly because they want the "threat" of lower prices to convince BHP to NOT go forward with their potash mine plans in Sask. I think Wall and his party are partly to blame for this FIASCO. IF they had agreed to le the deal go thru think of all the mone...
2 stars
August 1, 2013
Rate this comment
0 stars
v
Usefulness

Clarity

Credibility

Leave a Message

You must be logged in to access this feature.