All Posts from March 19, 2015

PotashCorp expects impact from tax change – Alert

Potash Corp. of Saskatchewan Inc. said March 18 that changes to potash taxation in conjunction with the Government of Saskatchewan’s 2015-16 provincial budget are expected to decrease the company’s 2015 pre-tax earnings by C$75-$100 million. PotashCorp said the impact reflects a significant change in the timing of the annual allowable deduction for expansion and maintenance capital expenditures and is most pronounced in 2015 – and to a lesser extent 2016 – as the company winds down capital expansion projects and incurs higher maintenance capital spending as a result of these expansions.

A potash taxation review was also announced as part of the budget release.

 “PotashCorp is disappointed in the announcement today,” said President and CEO Jochen Tilk. “While we understand the difficult revenue situation facing the government, we are nearing completion of a $6 billion investment in Saskatchewan which was based on the existing tax structure remaining in place. Changing the rules midstream impacts the ability of our shareholders to earn a fair return on their capital and undermines Saskatchewan’s relative competitiveness.”

“A stable, predictable and fair potash taxation system is important for both the province and the industry. Under the current regime, PotashCorp’s operations and investments have created thousands of jobs and continue to support numerous suppliers throughout the province,” Tilk said. “We are focused on ensuring that any changes to the existing system continue providing benefits to the people of Saskatchewan, while also protecting the competitiveness of the industry and the long-term interests of our investors, employees and customers. A constructive and consultative review process is an important part of ensuring such an outcome, and it is our hope that the government will pursue this avenue.”

SQM conducts investigation – Alert

Sociedad Química y Minera de Chile SA on March 18 the following statement: “The board of directors promptly initiated internal investigations and created a special committee to complete an extensive and independent report, and instructed the committee to utilize all resources it deems appropriate. The committee has contracted independent consultants from both Chile and the United States of America, and will continue to provide information to the regulatory authorities as necessary.”

The board also agreed to terminate the employment contract of Patricio Contesse G. and voluntarily provided the Chilean Internal Revenue Service with all of the information that was requested by the Public Prosecutor and will continue to do the activities necessary to reach a prompt conclusion.

SQM also comments that despite the current situation, in particular the public exposure, the company continues to focus on its core businesses.

Pinnacle opens new Kansas retail location – Alert

Pinnacle Agriculture Holdings LLC announced on March 17 that it has opened a new retail location in Edson, Kan., that will offer fertilizer, seed, crop protection chemicals, and precision agriculture services to area growers of corn, soybeans, grain sorghum, and wheat.

The facility at 2704 County Road 64 will operate as part of Pinnacle’s Performance Agriculture™ brand. The start-up team includes Justin Foss, location manager; Stuart Schmidt, sales and operations manager; and Darrick Zerr, sales representative. Foss has worked in agriculture retail for 17 years, Schmidt brings 23 years of agriculture experience in a variety of sales roles, and Zerr has 20 years of experience in agriculture machinery sales.

“Our team is excited to expand the Performance Agriculture footprint into northwest Kansas,” said Foss. “We realize that strong agronomic recommendations and a high level of service are key factors in making our customers successful, and we look forward to helping area farmers be as profitable as possible.”

Pinnacle now serves growers in 27 states through its Sanders®, Performance Agriculture, Providence Agriculture™, AgOne Application Services™, OptiGro®, Innvictis™, Meridian™, and Altitude™ brands. The company has launched five new locations since December 2014.

“We are happy to have such an experienced management team to offer high-quality products and superior service,” said Keith Karnes, regional business director for Performance Agriculture. “We feel confident that the farmers of northwest Kansas will benefit from our offerings and that our team will add value to their business.”

BPC says China contract at $315/mt

Belarusian Potash Co. said today that it has reached an accord with the Consortium of the Chinese buyers regarding a price increase to $315/mt CFR for shipments to China in 2015.