There has been a lot of market activity in the last two days in the potash sector, in light of this week's announcement from Uralkali that they are exiting from the sales organization Belarusian Potash Co. ("BPC"). Potash Ridge believes the downward pressure on stocks is a reaction to uncertainties in the future supply and pricing for muriate of potash ("MOP"). The Corporation believes that the overall positive long term outlook for potash has not changed with growing global population, decreasing arable lands and changing diets in developing countries.
Potash Ridge is planning to produce sulphate of potash ("SOP"), a premium priced potash distinct from MOP. SOP is used on high value crops such as fruits, nuts and vegetables compared with MOP, which is usually applied to row crops. To the best of the Corporation's knowledge, Uralkali does not produce SOP. Demand for SOP continues to be robust with healthy pricing premiums over MOP, with the SOP pricing experiencing an upward trend as reported by the industry operators.