Canpotex and Sinofert Sign New Contract

SASKATOON, SK, Jan. 20 /PRNewswire/ - Canpotex Limited (Canpotex) today signed a contract with Sinofert Holdings Limited (Sinofert) to supply 600,000 tonnes of potash during the first six months of calendar 2011 at price levels similar to those recently established for new seaborne imports of potash to China, and reflects an approximate $50 per tonne increase over the 2010 China price level. 

The contract is the first concluded under the new three-year Memorandum of Understanding (MOU) signed with Sinofert in October, 2010. The contract volumes are at the low end of the MOU range reflecting Canpotex's tight potash supply position. Canpotex is now fully committed for sales in the first calendar quarter of 2011, and has significant volumes confirmed for the second calendar quarter.

"China has been a key market for Canpotex for almost 40 years, and this contract is indicative of our ongoing commitment to this important and growing market," stated Mr. Steve Dechka, Canpotex's President and Chief Executive Officer.

Sinofert is China's largest integrated agricultural company. As a long-term business partner, Sinofert collaborates with Canpotex in delivering market development programs that provide farmer education to improve yields through balanced fertilizer applications and other best farming practices.

Operating continuously since 1972, Canpotex is the exclusive offshore marketing company owned by the three Saskatchewan potash producing companies: Agrium Inc. (TSX andNYSE: AGU), Mosaic Canada Crop Nutrition, LP, a subsidiary of The Mosaic Company (NYSE: MOS), and Potash Corporation of Saskatchewan Inc. (TSX andNYSE: POT).

Agrium supplies Canpotex with 9.28% of its potash product, Mosaic 37.11%, and PotashCorp 53.61%.

SOURCE Canpotex Limited