The press release is quoted as saying:

During the three-month period ended June 30, 2010, Amazon incurred a net loss of $1,094,372 compared to a net loss of $1,035,230 for the three-month period ended June 30, 2009. The larger loss in the second quarter of 2010 was due to exploration expenditure write-offs related to the decision not to continue the Caximbo and Mimoso projects. Amazon currently has a working capital position of approximately $5.4MM. The Company maintains a strong cash position and continues advancing the Cerrado Verde Potash project (“Cerrado Verde project”).

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Click here to access Amazon Mining Holding Plc Corporate Site

China, a country keen on ensuring it has the raw materials necessary to sustain its voracious appetite for growth, has cried foul play over BHP Billiton’s (NYSE: BHP) bid for Potash Corporation of Saskatchewan (NYSE:POT). China is concerned that if a bid by BHP for Potash Corp were to go through, its future supplies of potash, which is has a great need- will be affected by a so called “potash monopoly.”

These concerns have led the country to investigate into BHP Billiton’s $39 billion bid for Canada’s Potash Corp., and also review the merger of two Russian potash firms, Uralkali and Silvinit, given the major impact the two deals would have on China.

China buys around 7 percent of the output of Potash Corp. Potash demand in the country has been consistently growing by around 5-8 percent a year, China’s largest fertilizer distributor, Sinofert Holdings Ltd said last week it was worried about the impact that a BHP deal would have on China’s potash purchase. However, the firm refused to respond when asked if they would go as far as making a counter offer to Potash Corp, in order to stop a potential acquisition.  Government departments and state-owned Sinochem Group have held meetings recently to review the possible impact the two high profile acquisitions could have on China

According to Chinese law, its regulators have jurisdiction over a foreign merger if two of the parties each have over 400 million Yuan ($58.7 million) in sales in China in the last fiscal year and if their worldwide sales exceed 10 billion Yuan. The BHP Billiton bid for Potash Corp appears to meet that criterion. However, Chinese regulators when evaluating the deal could take into account future production from deposits that BHP owns, including the Jansen mine, in projecting future market dominance. China’s ability to enforce rulings in cases where neither party to the merger has operations or assets in China is so far untested. A Chinese fertilizer expert said there is concern about BHP getting control of Potash Corp adding to its own large potash reserves. “So in terms of buying this resource, or negotiating, the Chinese government and people don’t want to see this kind of concentration,” Chen Li, a fertilizer expert at China National Chemical Information Center, claims. But, is this a case of the pot calling the kettle black?  China itself in the past has been accused of taking advantage of its monopoly over the tungsten market.

BHP fired back to China’s move- stating that the deal only needs approvals from regulators in Canada and the United States, where Potash Corp sells around half its production. BHP Billiton could also argue that since it currently does not produce potash, a takeover of Potash Corp would represent a change in ownership hands but no increase in market share.

Russian potash suppliers believe that the market will soon bear a price increase for the crop nutrient.  According to the Belarusian Potash Company (BPC) – the marketing arm of Russian producers Uralkali and Belaruskali, Russian suppliers will seek price rises from customers in Asia and Brazil.  BPC is convinced that potash prices will rise from US $375 a tonne- to as much as US $420 per tonne.  BPC tried a roughly similar move earlier this year but the price rises did not persist. Prices for potash have started to bottom out and demand by China, the world’s biggest user of the crop nutrient, will rebound in the second half after bad weather conditions led farmers to idle fields, Citi Securities Co. said last week.

Meanwhile, the contract figures that China and Canpotex are settling on paint a different picture.  Sinofert Holdings Ltd., China’s largest fertilizer distributor, is rumoured to have settled third-quarter potash prices with Canadian marketer Canpotex at about $350 a metric tonne, including freight. This is the same price that the two firms agreed upon earlier in the year.  Sinofert has yet to settle contracts with Belarusian Potash Co. Earlier in the year, BPC’s willingness to settle low contract prices with China and India angered North American producers. BPC’s analysis that potash prices will rebound lends support to Potash Corp’s rejection of the $US40 billion hostile bid from BHP on the basis that it is grossly inadequate. Potash Corp is the single biggest producer of potash and its earnings have extreme leverage to any price increases, or price falls.

With help from Assistant Editor Vivien Diniz

During the three-month period ended June 30, 2010, Amazon incurred a net loss of $1,094,372 compared to a net loss of $1,035,230 for the three-month period ended June 30, 2009.

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For Amazon’s company profile, click here.

The press release is quoted as saying:

Canasia has a well diversified portfolio of prospects. Canasia’s current prospects include the following: (a) The Clone Gold prospect in Stewart, BC, that has returned grades as high as 44.75 g/t Au over 12.80 metres (announced October 22, 2009); (b) The Debut Gold prospect in NE Nevada; (c) 55,300 contiguous acres at Reed Lake, Manitoba; (d) 450,000 contiguous acres of Potash claims, bordering Alberta and Saskatchewan; (e) 130,500 acres prospective for Coal in SE Saskatchewan; (f) 180,000 acres prospective for Lithium in Alberta; (g) and mineral claims covering an area of approximately 9,200 hectares, located north and northwest of the El Oro — Tlalpujahua Gold/Silver belt in the states of Guanajuato and Michoacan, Mexico.

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Click here to access Canasia Industries Corporate Site

The past week has been an eventful one for the potash sector following BHP Billiton’s (NYSE:BHP) unsolicited bid to takeover Potash Corporation of Saskatchewan (NYSE:POT). This bid was immediately rejected by Potash Corp. Since then, a great deal of business maneuvering has taken place. First, BHP went hostile in its attempt to takeover Potash, and secondly Potash Corp planned their strategy to safeguard against BHP’s takeover.

Potash Corporation began fighting back once it appeared that BHP would go hostile.  Their first move was to adopt a shareholder rights plan, their second move was to open talks with other possible suitors.

Currently, a consortium of investors is conducting feasibility studies into a bid for the Potash giant. The leader of this effort is a Chinese private equity firm known as Hopu Investment Management Co, at least according to one anonymous source. The source added that the consortium has yet decided whether or not it will make an offer to the Canadian company. Separately, Sinochem, the largest chemical products supplier in China, is keeping a close eye on BHP Billiton Ltd.’s potential hostile takeover of Potash, according to a Sinochem executive.

It is no surprise that these alternative suitors are coming from China. China definitely needs to secure a long -term, stable supply of potash, and a purchase of Potash Corporation of Saskatchewan, the world’s largest producer, would easily achieve this goal.

China currently needs to feed about 20 percent of the globe’s population on only 7 percent of the world’s arable land, according to Informa Economics, the US-based agribusiness consultancy. Food security is a prime concern of China, and potash is needed to fertilize crops and maximize yields.  China has adequate domestic supplies of nitrogen and phosphate fertilizers; however, the country does not have nearly enough domestic potash production to meet demand. The urgency inherent in the country’s shortage of potash supplies was recently summed up by The Chinese Academy of Sciences, a think-tank that advises the government.  In a recent report, the the Academy commented that China’s reliance on potash imports “may become a major threat to its fast developing national economy and long-term strategic needs.”

In addition to China’s intense need for potash, its reliance on imports subjects the country to uncertainty in prices.  Because Canada and Belarus control the majority of the potash sector, the market has been subject to rapidly steep price fluctuations. If China were to acquire Potash Corp, the country would have a more stable supply of the necessary crop nutrient at an affordable price.

China has the world’s sixth-largest reserves of potash and the country has been aggressively expanding domestic potash production, however, domestic deposits will never be able to meet the countries growing appetite for potash. China imported about half of its potash last year, with most of it coming from Canada. Domestic production is 3 million tonnes to 4 million tonnes annually, with potash demand last year at 7.9 million tonnes.  Hence, China is working to invest in companies to develop international reserves.

BHP will keep pushing for the acquisition to go through. Marius Kloppers, the chief executive of BHP Billiton, will fly to America next week for face-to-face talks with investors controlling at least 20 percent of Potash Corp of Saskatchewan. The trip is part of a planned two-week investor roadshow where BHP will showcase the company’s annual results to shareholders. At the same time, BHP will take advantage of the fact that half of the mining company’s North American shareholders are also investors in the Canadian potash producer. Among the common shareholders in the two companies are Capital World Investors, which owns 7.07 percent of Potash Corp, Blackrock (3.89 percent), RBC Asset Management (2.85 percent), Harris Investment Management (1.66 percent), Marsico Capital Management (1.21 percent) and Caisse de Dépôt et Placement de Québec (1.18 percent). There are many more BHP investors with stakes of just less than 1 percent in the target company.

BHP also announced this week that if their bid for Potash goes through, they seek to exit the jointly-owned marketing arm Canpotex. BHP added that at the same time, it will honor “existing commitments and contractual arrangements,” in one of a series of filings to the U.S. Securities and Exchange Commission.

The press release is quoted as saying:

Agrium Inc. is a major retail supplier of agricultural products and services in both North and South America and a leading global producer and marketer of agricultural nutrients and industrial products. Agrium produces and markets three primary groups of nutrients: nitrogen, phosphate and potash as well as controlled release fertilizers and micronutrients.

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Click here to access Agrium Inc. and AWB Limited Corporate Site

The press release is quoted as saying:

During the last quarter Boyd PetroSearch (“Boyd”) has been conducting a full interpretation of existing
seismic and petroleum drilling data for the permit land on behalf of the Company. This work was conducted in two phases and has now been completed. Phase 1 involved the interpretation of publicly available 2D seismic data; phase II involved digitising the available raster data of seismic lines within the project area and integrating these with the initial interpretation to produce a new robust interpretation of the Boree Salt Member.

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This hole was targeting potash mineralization intersected by Parsons holes 5 and 7 at a depth of 680 metres vertical.

President and CEO of Allana Potash, Farhad Abasov says:

“Allana is very pleased to have completed hole DK-10-04 in the centre of the potash basin and we are encouraged at the potential in this part of the property. The core samples are being prepared for shipment for chemical assay analysis. The arrival of the second drill rig will expedite our Phase II program of 10,000 metres of drilling and accelerate the exploration program going forward. In addition to the arrival of the second drill rig, Allana is proceeding with its 2D seismic survey of the southern part of the property. Tesla-IMC is mobilizing equipment in Dire Dawa and preparing for transport to the project site. Camp expansion to accommodate the seismic crew is also underway and is expected to increase camp capacity to about 60 people.”

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For Allana Potash’s company profile, click here.

The press release is quoted as saying:

AWB was formed in 1939 as the Australian Wheat Board and was Australia’s statutory grain marketing authority for over 60 years. Operations are conducted through two main divisions: Landmark and Commodity Management.

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Click here to access Agrium Inc. Corporate Site

The press release is quoted as saying:

U.S. industrial production grew month-over-month 1% in July – surpassing market expectations for a 0.5% increase and up 7.7% from the same-year ago month. This should allay fears the U.S. manufacturing sector is headed back into recession, said Paul Ashworth of Capital Economics.

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