GSFC signs agreement with Karnalyte Resources for the construction of potash project

Canada: Karnalyte Resources Inc., a Canada based manufacturer of potash and magnesium products has entered into an agreement in principle with India based agribusiness company, that is, Gujarat State Fertilizers and Chemicals (GSFC) for financing the construction of potash mine at Saskatchewan, Canada. In the first phase of the project, GSFC would invest USD700 million for annual production of 625,000 tons of potash. Post the completion of all the three phases of construction, the facility at Wynyard would have the capacity to produce 2,125,000 tons pf potash annually. In 2013, GSFC had acquired 19.98% ownership stake in Karnalyte Resources through an investment of USD 44.7 million. Furthermore, GSFC has signed an offtake agreement with Karnalyte Resources to procure 350,000 tons muriate of potash annually after the completion of Phase 1 of the project and procure additional 250,000 tons muriate of potash annually after the completion of Phase 2.

TechSci Research depicts that the partnership between Gujarat State Fertilizers and Chemicals and Karnalyte Resources Inc. would ensure abundant supply of potash for manufacturing potash fertilizers and address the growing demand for fertilizers in the country.

According to TechSci Research report,  “Iran Fertilizers Market Forecast and Opportunities, 2020”, the fertilizer market in Iran is projected to grow at a CAGR of over 3.5% during 2015 – 2020. Increasing need to provide food security to the growing population of the country is anticipated to steer demand for fertilizers in Iran. In addition, expanding exports of horticulture products produced in the country is forecast to generate higher demand for fertilizers in the country over the next five years.