BPC, Sinochem sign memorandum for 4 mln tonnes of potash worth $1.3 bln
MINSK. May 12 (Interfax) - Belarusian Potash Company (BPC) has signed a cooperation agreement with China's Sinochem for supplies of Belarusian potash, BPC's press service told Interfax.
"The memorandum was signed for the five-year period between 2015 and 2019. BPC and the Sinochem Group intend to continue our consolidated efforts in the future in resolving relevant issues with potash exports and imports, in light of which obligations are being undertaken to sell and buy 4 million tonnes of Belarusian potash over the five years," the press service said.
BPC said that this amount includes both hard and optional volumes. "The overall cost of fertilizer planned to be shipped to China is around $1.3 billion at current prices. The exact level of prices will be the subject of additional discussions," the company added.
The Sinochem group is China's largest petrochemicals and chemicals trader. The company refines and produces oil, manufactures and processes rubbers and produces various chemical products.
BPC was formed in August 2013 after Russian Uralkali ended joint sales of potash via its predecessor, the BPC joint venture, which had been formed by Uralkali and Belaruskali in December 2005. Prior to Uralkali's withdrawal, BPC accounted for 43% of global potash exports.