The global potash monopoly has alarmed China

Source: xinhuanet      Date：2017-09-13

       The global potash monopoly has been a false alarm as BHP billiton, the mining giant, renounced its acquisition of potashcorp. Industry insiders believe that Chinese companies and governments need not overreact to a monopolistic overreaction as the self-sufficiency rate of potash and the number of imports dwindle.

       Since August, BHP billiton, the Australian mining giant, has attracted widespread attention at home and abroad for its $38.5bn acquisition of potashcorp. Many fear that BHP will take over half of the world's potash resources. This further centralised its pricing power for potash, endangering the food security of some countries.

       Since then, dozens of companies and financial institutions around the world have joined the bid. Sinochem has said it is highly concerned. BHP billiton ended up being "unable to meet the Canadian government's additional commitments".

       Shanghai engineering research center for potassium, potash branch President of the China inorganic salt industry association, director of the who, told reporters that "the possibility of potash monopoly exists, but it follows this will pose a threat to China's grain production safety some exaggerated. China has sped up the potassium salt mining, half the current consumption can be self-sufficient. While imports is decreasing year by year."

       China's potash production base is mainly concentrated in the salt lake of qinghai and luobubo salt lake in xinjiang. In addition, sichuan, guizhou, shaanxi, yunnan, gansu and other places also have distribution. A 12-year survey of land resources, released in early October, shows that China's potash forecast is at least two to three times the amount of resources it has identified.