These 6 metals, minerals back to greenfield pricing by 2020

The Business Standard reports a senior official from India's state department of fertilizers says so far the country's effort to secure potash imports at a better price by aiding Indian companies to acquire assets abroad has not made any breakthrough. The global potash market is controlled by about 10 mainly Canadian companies and a couple of Russian producers. With no local producers, India imports more than 6 million tonnes of muriate of potash a year for its 50 million small-scale farmers. Current pricing is around the $500/tonne level and Scotiabank recently said demand is weakening and after two years of steady price hikes 2012 will see no growth.

Aecon Group, Canada largest construction firm, announced Monday it has signed a letter of intent with the Potash Corporation of Saskatchewan for a project valued at over $250 million to install the interior of a new process mill at the PotashCorp mine site near Rocanville, Saskatchewan. The project will create approximately 800 jobs at the construction site said Aecon in a press statement.  Site preparation is expected to begin in early 2012 and this portion of the project is scheduled for completion in the fall of 2013. Monday's deal brings the total value of projects announced by Aecon since September to over $850 million which has given its share price in Toronto an almost 30% boost over the period.

In an article published on BNWnews.ca focussing on potash industry developments in the wake of continuing high prices and record food demand, Western Potash, with arguably the world’s most advanced ‘independent’ potash project, is highlighted as a company getting a lot of attention from potential state-funded buyers.

Despite a pre-feasibility study packed with good news and an ever-louder drumbeat suggesting an imminent takeout, Western Potash sank 6.67% on Wednesday, a day the broader market managed to keep losses to less than 3%. Western Potash said on Monday it is upping the projected capacity of the Milestone project by 12% to 2.8 million tonnes per year and surprised by lowering its capex and opex cost projections. Scotia Capital commented that state-owned entities from Brazil, India and China could be interested in Western Potash to secure supply outside of Canpotex and Russian producers which together control around 57% of global supply.

The Ottawa Citizen reports that computer hackers went after potash documents in the Finance Department and Treasury Board networks. An email, pretending to come from an aboriginal group, was opened by department officials. A link in the email installed malware on the worker's computers, which facilitated the attacks. Industry officials believe the attack was launched from China.

After a more than 3% jump in the first half hour following stellar financial results, investors quickly tempered their optimism about the world's largest potash miner and by midday Potash Corp was back in the red. You don't have to look too hard to find reasons for the scepticism.

Potash Corporation of Saskatchewan Inc. (NYSE:POT) doubled its third quarter earnings, reporting 94 cents per share or $826 million compared to 38 cents per share or $343 million a year ago. The company's stock opened 2.3% higher at $50.65 a share. During the first the first nine-months of 2011, the company's earnings have doubled from $1.39 per share during the same period last year to $2.73 per share today. The company said demand was strong from both North American and international customers.

Potash royalties took centre stage yesterday night in a lively debate between Saskatchewan Premier Brad Wall and Dwain Lingenfelter, the leader of the province's NDP. Saskatchewan is in the midst of an election campaign with voters going to the polls on November 7. Lingenfelter went on the offensive, attacking the potash industry for what he says are unfair royalties. The NDP would tax an extra five cents of every dollar of potash sales, and use up to $700 million in extra potash revenues to fund their platform. "That's our strategy. To move (the royalty) from a nickel on the dollar, do the review and get at least 10 cents on the dollar. I don't think that's asking too much," " said Lingenfelter.

Toronto, ON – October 26, 2011: Aecon Group Inc. (TSX:ARE) announced today that its Mining Division has been awarded a contract valued at approximately $80 million for work at a new potash mine, located approximately 140 kilometres east of Saskatoon, Saskatchewan. Under the unit price contract, Aecon Mining will conduct site preparation and early works, including site grading, construction of temporary roads, preparation of sediment ponds, and layouts for the camp. Work at the site has begun and is scheduled for completion in the fall of 2012. “This contract represents an important step forward for Aecon Mining, expanding its client base and its reach in Western Canada’s resource sector,” said Teri McKibbon, Aecon’s Chief Operating Officer. “The potash industry in Saskatchewan is undergoing significant growth, and Aecon is strategically positioned to play a role in many aspects of that growth.”