Migao Corp. Secures Long-Term Potash Supply for China
Migao Corporation, a Toronto- and Beijing-based producer of specialty potash fertilizers for the Chinese market, announced an agreement with Potash Export Company of Russia for the supply of up to 500,000 tonnes of potash per year for ten years at preferential pricing. The potash supplied to Migao by Potash Export Company is meant for import into China exclusively. As part of the terms of the agreement, Migao will prepay US$100 million, with further payments to be negotiated and advanced prior to the initial potash delivery in January 2013. Migao Corporation, through its wholly-owned subsidiaries, owns and operates fertilizer production plants in various locations across China for the production and sale of potassium nitrate, potassium sulphate and specialty compound fertilizers to China’s agricultural market.