PotashCorp Announces Significant Potash Price Increase in 2008 Canpotex, Sinofert Agreement

Listed: TSX, NYSE Symbol: POT 


SASKATOON, SK, April 16  /PRNewswire-FirstCall/ -- Potash Corporation of Saskatchewan Inc. (PotashCorp) announced today that Canpotex Limited (Canpotex), the offshore marketing company for Saskatchewan potash producers, and Sinofert Holdings Limited (Sinofert), a leading fertilizer enterprise in the People's Republic of China (PRC), have reached agreement on 2008 potash pricing at US $400 per tonne higher than in 2007. As previously reported, Canpotex has prorated China's 2008 volumes and, as a result of the timing of this settlement and unprecedented demand in other markets, has only 1 million tonnes that it can commit to Sinofert through the remainder of this year.

The Canpotex/Sinofert agreement is pursuant to the 2007-2009 Memorandum of Understanding that exists between the two companies. Canpotex ships primarily red standard grade potash to China, but also supplies certain amounts of white standard grade and granular product.

"Significantly higher potash prices and extraordinarily tight supply have become much more firmly entrenched since China's previous contract was signed 14 months ago," said PotashCorp President and Chief Executive Officer Bill Doyle. "With the intense pressure on global food production and continued growth in potash demand, this is the reality for our industry for the foreseeable future. This settlement highlights the importance of securing supply in an increasingly tight market. As the world's largest potash company, we are committed to raising our capability to meet long-term growth in demand and we intend to capture the benefits for our shareholders as we do so."

Canpotex is the offshore marketing company jointly owned by three Saskatchewan potash producers: PotashCorp, Agrium and Mosaic. PotashCorp, under a pro rata agreement based on capacity, is currently entitled to supply approximately 54 percent of Canpotex's potash requirements. PotashCorp also owns 20 percent of Sinofert, the largest distributor of fertilizer products in the PRC. Sinofert is also a major producer of phosphate-based fertilizer products and holds an 18 percent interest in the country's primary potash producer, Qinghai Salt Lake Potash Co., Ltd.

Potash Corporation of Saskatchewan Inc. is the world's largest fertilizer enterprise producing the three primary plant nutrients and a leading supplier to three distinct market categories: agriculture, with the largest capacity in the world in potash, second largest in nitrogen and third largest in phosphate; animal nutrition, with the world's largest capacity in phosphate feed ingredients; and industrial chemicals, as the largest global producer of industrial nitrogen products and the world's largest capacity for production of purified industrial phosphoric acid.

This release contains forward-looking statements. These statements are based on certain factors and assumptions including foreign exchange rates, expected growth, results of operations, performance, business prospects and opportunities and effective income tax rates. While the company considers these factors and assumptions to be reasonable based on information currently available, they may prove to be incorrect. A number of factors could cause actual results to differ materially from those in the forward-looking statements, including, but not limited to: fluctuations in supply and demand in fertilizer, sulfur, transportation and petrochemical markets; changes in competitive pressures, including pricing pressures; the results of negotiations with China and India; timing and amount of capital expenditures; risks associated with natural gas and other hedging activities; changes in capital markets and corresponding effects on the company's investments; changes in currency and exchange rates; unexpected geological or environmental conditions, including water inflow; strikes and other forms of work stoppage or slowdowns; changes in and the effects of, government policy and regulations; and earnings, exchange rates and the decisions of taxing authorities, all of which could affect our effective tax rates. Additional risks and uncertainties can be found in our Form 10-K for the fiscal year ended December 31, 2007 under captions "Forward-Looking Statements" and "Item 1A - Risk Factors" and in our filings with the US Securities and Exchange Commission and Canadian provincial securities commissions. Forward-looking statements are given only as at the date of this presentation and the company disclaims any obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. 

DATASOURCE: Potash Corporation of Saskatchewan Inc.



CONTACT: Investors: Denita Stann, Director, Investor Relations, Phone:

[phone], Fax: [phone], Email: ; Media: Rhonda

Speiss, Manager, Public Relations, Phone: [phone], Fax: [phone],

, Web Site: http://www.potashcorp.com/

Copyright