Belarusian govt, Belkneftekhim fail to agree potash export volume
MINSK. Feb 28 (Interfax) - The government of Belarus and the enterprise Belneftekhim have so far been unable to reach agreement on strategy for exporting Belarusian potash this year, with the company feeling exports should be reduced to stabilize world prices while the government insists on increased exports.
"The concern's position relative to the plan for the work of Belarusian potassium chloride producer OJSC Belaruskali was put together by Belneftekhim chief Igor Zhilin at the beginning of February, during his meeting with [Prime Minister] Mikhail Myasnikovich when the concern's business plan for 2012 was being supported. Since then, Belneftekhim has not changed its view of the development of the republic's potassium sector," a source at the agency told Interfax.
During that meeting, Zhilin pointed out that on the world market now "is an absence of market demand for potash fertilizers." Compared with last year, he said, demand for the product has plunged 30%, but "this gap will be eliminated and we will fulfill the program."
Belarus plans expand and overhaul Belaruskali's production base this year in order to increase potash fertilizer output to 10.3 million tonnes from last year's 8.8 million tonnes. Exports are targeted to rise roughly 24% (7.7 million tonnes exported in 2011).