APC to cut K production, inks deal with China

Amman–Jordan’s Arab Potash Co. has reduced potash production due to uncertainties in the global market. The company informed the Amman Stock Exchange that operations will be approximately 20 percent of capacity. APC Acting General Manager William Flahr said the company will return to producing at full capacity “when potash markets can support such a decision.” APC added that it will continue to fulfill its commitments from inventories. APC had reported higher production levels in the first half of the year but this was more than offset by sharply lower prices. APC potash production totaled 976,000 mt in the first half of 2013 compared to 972,000 mt during the corresponding period last year. Production volume was 91 percent of the target of 1.069 million mt. Meanwhile, APC and Sinochem Group signed a three year potash supply agreement. Under the terms of the agreement Sinochem Macao was appointed the exclusive channel for all APC sales of MOP to China for the years 2014-2016. The volumes agreed to were around 600,000 mt/y. The agreement was signed in Beijing Sept. 18 during a visit to China by Jordan’s King Abdullah.