TORONTO (miningweekly.com) – Potash Corp, the biggest fertiliser-maker, on Wednesday said it is increasing its quarterly dividend by 100% to $0.14 a share, having also doubled the payout a year ago.

CEO Bill Doyle said the increase “reflects the confidence we have in the drivers of our business”, despite the fact that the company late last year resorted to idling some potash production capacity to keep prices higher.

The Saskatchewan-based company in October reported earnings for the quarter ended September 31 of $0.94 a share as it benefited from high food prices, which prompted farmers to apply more fertilisers to boost yields.

At the time, Potash Corp forecast full-year earnings of between $3.40 and $3.80 a share, ending the quarter with nearly $400-million in cash.

Since then the fertiliser sector took a knock as farmers held back on purchases in the midst of market uncertainty, prompting companies such as Potash Corp to extend shutdowns at some of its mines in a bid to support prices.

Bloomberg reported on Wednesday that Russia’s OAO Uralkali was also prepared to curb output to cling to the strong price gains of 2010 and 2011.

Customers in India fought hard against a price hike Canadian potash cartel Canpotex wanted to impose at the start of last year, eventually reaching a deal in August.

Potash Corp is set to announce its 2011 financial results on Thursday.
 

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