Tuesday, August 26, 2008

Shaky stock market doesn't deter Canpotex from its Rupert plans

We continue on with catching up on the events of early August, from the August 13 edition of the Daily News a look at the front page story about the evolving plans of Canpotex for a potash terminal at Ridley Island.

Harsh day on the TSX doesn’t take bloom off Canpotex project
By George T. Baker
The Daily News
Wednesday, August 13, 2008
Page one

Even after a difficult Monday on the commodities heavy Toronto Stock Exchange (S&P/TSX) where natural resource prices dropped, potash is a good sell in Asia, which is good news for Prince Rupert.

The fertilizer is being thrown on ships in record numbers. And for Prince Rupert that could mean good returns once Canpotex’s potash terminal on Ridley Island opens.

“What we are seeing is a ramp up of potash exports access and Canpotex’s decision to open up a terminal reflects that,” said Shaun Stevenson, vice president of Marketing and Business Development for the Prince Rupert Port Authority (PRPA). “Right now Canpotex has a bullish outlook on Prince Rupert.”

Stevenson said he expected the potash terminal to take three years to build but he expected it to create at least 200-300 jobs with construction projects and then 80-100 jobs when the terminal is up and running.

Numbers released by the Port Metro Vancouver, shows that potash exports sailing out of Vancouver increased by 10 per cent in the first half of 2008 than it did in the first half of 2007. Most of those shipments are off to China where potash is in great demand.

Global demand for potash boosted the port’s shipments to 3.4 million tones in the first six months of 2008 up from 3.1 million tones in the first six months in 2007.

“These statistics reflect, and the economic depth and diversity they echo, demonstrate the vital role that Canada’s largest port plays in the country’s economic well-being,” said Gordon Houston, president and CEO for Port Metro Vancouver.

However, due to a drop in natural resource prices, Saskatchewan potash supplier, Potash Corp. (TSX:POT) announced a major decline in stock value Monday, losing more than $11 in value, dropping stock value to $171.55.

The company is one of three owners of Canpotex, an international marketing and distribution company for potash.

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