Yara invests $40 million in IC Potash

Yara invests $40 million in IC Potash

9:27 AM, 2nd April 2012
Yara invests $40 million in IC Potash
Jorgen Ole Haslestad, President and CEO, Yara.

OSLO, NORWAY: Yara has made a strategic investment of approximately $40 million in IC Potash Corp (ICP) and has entered into an off-take arrangement for 30 per cent of all products produced by ICP’s Ochoa project in New Mexico for a period of 15 years. ICP and Yara have also agreed to discuss the possibility of establishing a jointly held entity for the purpose of marketing products produced by the Ochoa project.

ICP’s objective is to start commercial production in fourth quarter of 2015, with an estimated annual production of 700,000 metric tonne of SOP (potash sulphate) and SOPM (potash magnesium sulphate). Yara has no current intention to acquire additional securities of ICP, except in connection with the exercise of its pre-emptive right, or to dispose of any of its ICP securities.

“This investment fits well with our strategy. Through the ownership in ICP, Yara gets an upstream exposure on potash which reduces and mitigates the financial impact of being structurally short on the nutrient. Furthermore, the partnership with ICP aligns our respective strategies to develop and distribute premium fertilizer products, where Yara already has a leading position globally with its nitrates and nitrate-based NPK portfolio,” said Jorgen Ole Haslestad, President and CEO, Yara.

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