PotashCorp Announces Strategic Partnership with Sinochem Corporation's Fertilizer Business (Sinofert)

PotashCorp Announces Strategic Partnership with Sinochem
Corporation's Fertilizer Business (Sinofert)
Listed: TSX, NYSE Symbol: POT 


SASKATOON, SK, June 6  /PRNewswire-FirstCall/ -- Potash Corporation of
Saskatchewan Inc. (PotashCorp) today announced that it has reached agreement
with a subsidiary of Sinochem Corporation (Sinochem) to purchase a 9.99 percent
interest in Sinochem's fertilizer business (Sinofert). Sinochem had previously
announced in January 2005 that it would reorganize and place its fertilizer
business, with certain exceptions, into a publicly traded company which is
currently listed on the Hong Kong Stock Exchange.

PotashCorp's investment is subject to the fulfillment of various conditions,
including the completion of the reorganization and a securities offering, which
is expected to occur in July 2005. Under the terms of the agreement, PotashCorp
will also hold an option to purchase an additional 10.01 percent interest
within the next three years. The cost of the initial investment is not yet
determinable, as it is based on the institutional bookbuild price in the
forthcoming private placing, subject to a cap. The price for the shares subject
to the option will be determined by the prevailing market price at the time of
exercise. The investment is subject to customary conditions to completion.

Sinofert, a key Canpotex customer, is the largest importer of fertilizer
products in the People's Republic of China (PRC) in terms of import volume and
the largest integrated distributor of fertilizer products in terms of sales
volume in the PRC. In serving China's rapidly expanding market, Sinofert relies
heavily on potash imports from Canpotex due to limited indigenous resources. A
substantial portion of its sales volumes, revenues and gross margin are from
potash sales.

"This is part of our 'potash-first' strategy and extends our delivery pipeline
directly into the world's largest fertilizer market," said Bill Doyle,
PotashCorp's President and CEO. "Sinofert accounts for 60 percent of all the
fertilizer imported into China through a state-of-the-art distribution system.
We have great confidence in CEO Mr. Du Keping and his management team and
believe PotashCorp and Sinofert will be a very strong business combination.
This allows us to make our first substantial footprint in China, and we are
proud to partner with a company as rich in history and success as Sinofert."

Sinochem Corporation, one of the oldest and largest state-owned conglomerates
in China, will be the indirect controlling shareholder of the new public
company. PotashCorp will be entitled to appoint one board member with its
initial investment, and a second if the option is fully exercised.

Additional details relating to the reorganization of Sinofert and securities
offering can be found in its shareholder circular, which will subsequently be
released.

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, third largest in phosphate and fourth largest in nitrogen;
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 one of only three North American suppliers of
industrial phosphates.

This release contains forward-looking statements, which involve risks and
uncertainties, including those referred to in the company's annual report to
shareholders for 2004 and in filings with the U.S. Securities and Exchange
Commission and Canadian provincial securities commissions. A number of factors
could cause actual results to differ materially from those in the forward-
looking statements, including, but not limited to: fluctuation in supply and
demand in fertilizer, sulfur, transportation and petrochemical markets; changes
in competitive pressures, including pricing pressures; risks associated with
natural gas and other hedging activities; changes in capital markets; changes
in currency and exchange rates; unexpected geological or environmental
conditions; and government policy changes. 

DATASOURCE: Potash Corporation of Saskatchewan Inc.



CONTACT: Betty-Ann Heggie, Senior Vice President, Corporate Relations,

Phone: [phone], Fax: [phone], E-mail:

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

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