India's "Fertilizer Association Gets It"Very interesting article on India and what the Fertilizer Industry has asked for and why?
the line I like is:
"Today, there is a possibility of buying a stake in several mines that are in initial stages of operations..."
Hope the Indian Government finally get the real message and long term costs....$20 b in subsides or $20 b in investments, joint ventures, and offtake agreements? Lets hope they get organized within the next year so they can actually take part in mines "in initial stages"...If not, China will continue to invest and dominate with fertilizers as well.
Is Farhad off to China +/or Asia (India) next week.....hmmmm our man is on a mission...I still want to buy a pound of the first ton of KCL mined from Allana...from the "Liberty Belle Mine"....we can hope.
India: Fertiliser industry wants $20 billion for overseas assets
By Asher Berube December 7, 2011 (Source: Economic Times) -- To control the high cost of importing potash and phosphates for the domestic fertiliser industry, manufacturers have asked for creation ofa $20 billion sovereign fund to buy overseas assets of the minerals.
"Although there was a talk of $1 billion allocated for sovereign wealth fund for public sector companies, we have discussed with the government for a sovereign fund of about $20 billion for potash and phosphates," said A. Vellayan, chairman of Fertiliser Association of India (FAI) and group chairman of the Chennai-based Murugappa group. According to Vellayan, India has to follow the Chinese example of securing long-term supplies for the fertiliser sector. "China has done it and India have to go the same way. Or else we end up paying the $20 billion in subsidies, so it's better to secure resources," he told reporters on the sidelines of an event Tuesday evening. The request by the fertiliser sector comes in the backdrop of increasing raw material prices and the depreciating value of the rupee. The rupee has depreciated by nearly 16 percent against the US dollar in 2011. Vellayan proposed that the sovereign fund should also be opened for private sector, even through the public-private-partnership (PPP) model.
"Today, there is a possibility of buying a stake in several mines that are in initial stages of operations and are located in three-to four countries spanning Africa, Canada and South America. This will have an impact on prices."
Currently, India imports 90 percent of raw material for phosphoric and potassium based fertilisers, as domestic production is only able to support 10 percent of the production.
Indian fertiliser companies have entered into joint venture (JV) agreements with countries like Morocco, Tunisia,Jordan and South Africa for securing raw material resources.
In the same backdrop of pushing for reforms in the sector, the FIA is organising its annual seminar with the theme of 'Fertiliser Reforms: Challenges and Opportunities' from Dec 7-9 being held here.