Belaruskali announced yesterday it has signed a new framework agreement with Qatar urea exporter, Muntajat. The agreement will grant Muntajat access to 3 million marketable tonnes of Belorussian potash annually.
Commenting on the framework agreement, Abdulrahman Ali Al-Abdulla, Chief Executive Officer of Muntajat, said, "The agreement to sell potash from Belarus marks a strategic evolution of Muntajat's business. In addition to acting as the gateway to the chemicals, Polymers and Fertilisers produced in the state of Qatar, we are expanding to complementary products as part of our global operations. This agreement is of benefit to our growing customer base, as well as to Belaruskali and Muntajat."
Industry watchers have been ringing bells and promoting the idea that potash joint ventures are a thing of the past since Uralkali fragmented the FSU duopoly that had provided nearly half of the world's potash exports annually. But the new deal between Qatar and Belaruskali looks very much like Canpotex which comprises three companies, and exports each of the three major crop nutrients.
Yousef Jeham Al-Kuwari, Executive Director of Marketing and Sales, Muntajat, said, "Potash is a fertiliser in high demand in established and emerging world markets. Adding this product to the nitrogen fertiliser portfolio distributed by Muntajat strengthens our position in this sector and offers customers more convenience as they will be able to source urea and potash from one distributor."
Belaruskali CEO said, "We are pleased to sign this potash marketing agreement with Muntajat, an established global supplier of nitrogen fertilisers. This framework will result in an expansion of the reach of Belorussian potash to new markets."
With a new partner on board, Belaruskali is positioned to move product to key markets via a world scale nitrogen producer. The two companies believe the convenience of one-stop export shopping will add up to profits for each and broaden their global reach. One wonders if the two will now turn their attention to phosphate acquisition and look to capture a complete nutrient profile available for export.
Photo credit: instapinch / Foter / CC BY