By Daniella D'Alimonte - Exclusive to Potash Investing News

Potash Corp. of Saskatchewan Inc. (TSX: POT) felt the effects of a downward commodities slide as it dropped another 1.9 per cent July 18 lowering its price to US$211.16 per share. However, analysts are very bullish about this venture.

The company announced plans to increase capacity by 2.7 million tonnes at three of its mines. It will attempt to eliminate bottlenecking at its Allen mine and increase originally announced projects at Cory and Rocanville, effective immediately. Potash Corp.'s debottlenecking and compaction expansion at its Lanigan mine has already been completed. This will raise annual operational capacity by 1.5M tonnes, Potash Corp. says on its website.

Canpotex, the export marketer for Potash Corp., has concluded “significant volumes” of potash for US$1000 per tonne to Asian spot markets in Q4. All new sales for shipment this year, as well as new customers in Brazil and Latin America, can expect to pay this higher price, Potash Corp. stated on its website.

Western Potash Corp. (TSX: WPX) will begin a potash exploration project on 555 sq kilometres in Manitoba. Located near Saskatchewan Potash Corp.'s Rocanville mine, Western plans to complete five potash exploration wells with an option of an additional 10 wells. Its licenses were granted by Maitoba Science, Technology, Energy and Mines.

Belarusian Potash Company announced July 16 that it had finalized a 40,000 tonne deal with Sri Lanka at a record cost. At US$1,050 per tonne, this exceeds the US$1,000 price tag Brazil and Southeast Asia paid only two months ago. Belarusian, which is the world's biggest exporter of mined fertilizer, also announced 30,000-tonne deals with both the United States and Bangladesh.

After potash nearly doubled in price in the beginning of 2008, Belarusian hadn't expected another price hike. In a more recent statement, it predicts current prices to be maintained over the next few years.

BHP Billiton has been granted 17,000 sq kilometre to mine potash in Ethiopia. The country, more commonly known for its coffee production, is looking to diversify its economy.

Grizzly Diamonds Ltd. (TSX: GZD) announced it will acquire land for potash in Southeast Alberta. After signing an option with Nordic Diamonds Ltd. (TSX: NDL), Grizzly will take over 20,000 hectares near Medicine Hat called the Teddybear-2 Property.

This property, previously explored in 1940-1950′s, has again become a hotbed for exploration with its expected potash deposits.

Grizzly has also recently acquired a number of metallic and industrial mineral permits, including right to sub-surface potash, on the Saskatchewan-Alberta border. This covers 2,120 sq kilometres of contiguous land and about 116,000 hectares of crown rights.

Vancouver's Atacama Minerals Corp. (TSX AAM) has acquired 142,800 hectares of land in the new potash region of Bahia, Brazil. Entitled the Salvador Potash Project, it is located along the Atlantic coast.

Ivany Mining Inc. (TSX: IVNM), a junior mineral exploration company in Canada, has recently formed Ivany Potash Inc., a Saskatchewan subsidiary. The company plans to explore potash potential in Saskatchewan and abroad.

MagIndustries Corp. (TSX: MAA) has announced that natural gas requirements will be met in order to complete its Phase I and II potash mining and processing operations in the Republic of Congo. This announcement is a result of a meeting convened by the ROC government in Milan, Italy last month regarding industrial development.

A vital Russian rail line at Silvinit, one of the world's largest potash mines, could soon be closed for several weeks. This is because of a growing sinkhole, an issue the company faced last year which led to rising global potash prices.  Reuters reported that Silvinit is responsible for 10 per cent of the potash supply word-wide.

Vancouver-based Raytec Metal Corp. (TSX: RAY) has received its first government permit to explore on its KP441 potash claim. Located in central Saskatchewan, the 22,174 hectares of land has estimates of high potash recovery. Raytec's website claims a net recoverable indicated resource of 12.49 million metric tonnes.

Eurochem, a Russian company that traditionally produced phosphate fertilizers, is now constructing its first potash field. Entitled Gremyachinsky, aspects of the project will be highly challenging due to wide bands of water and water bearing materials located 500 metres below the earth. Eurochem has hired two world leaders, Thyssen Schachtbau and Shaft Sinkers, to assist with freezing and cementing during shaft construction. Canada's Hatch will be building the actual plant.  Analysts estimate that the project could help the company secure 20 per cent of Russia's potash market.