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Encanto incorporates trading company to market Muskowekwan crop nutrients

31st March 2017

By: Henry Lazenby

Creamer Media Deputy Editor: North America

     

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VANCOUVER (miningweekly.com) – Potash project developer Encanto Potash has incorporated a new subsidiary, Encanto Potash Trading Company, through which it will trade potash sourced from producing properties that are currently underutilised, alongside the concurrent development of the reserves located on the Muskowekwan First Nation (MFN) property.

"In addition to providing India with potash pre-mine construction, this sole-purpose vehicle enables Encanto to structure everything from short- to long-term supply agreements with existing producers, to envisioned merger and acquisition type transactions that would allow it to increase its supply capacity beyond the company’s flagship MFN property,” Encanto president Stavros Daskos stated.

“Recent discussions with suppliers for immediate supply of potash to India indicate that the price of potash is on the rise,” Daskos added.” There is middle ground to mutually benefit from, given Encanto's market access through its export opportunity agreements and the currently underutilised assets of others."

The TSX-V-listed project developer turned the global potash market on its head in January, when it announced that it had struck a definitive 20-year offtake agreement with an India-based farmers’ co-op for a minimum of five-million tonnes a year, cutting out the middle man and selling directly to farmers. Encanto’s latest agreement adds to the existing two-million-tonne-a-year, 20-year agreement with India’s largest trading company, Minerals and Metals Trading Company.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

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