Potash producers receiving rebates from Sask.

Regina-The Province of Saskatchewan reports that refunds to potash producers this year will exceed revenues collected this year by C$203.9 million. At the end of March 2009, the potash industry made installment payments equal to 25 percent of their full calendar year profit estimates. These estimates were too optimistic, and as a result, the payments have to be refunded. “Saskatchewan’s financial picture is improving after we experienced a significant revenue decline at the mid-way mark last November,” Finance Minister Rod Gantefoer said. “This is the first time we have seen potash drop to a negative figure, but I’m pleased our diverse economy has managed to lessen the impact.” The Third-Quarter Financial Report shows revenue is up since mid-year due to higher oil revenue, Crown Land sales, and additional taxes generated from stronger-than-anticipated income growth. This increase has more than offset further declines in potash revenue, which saw an unprecedented decline in sales volumes in 2009. According to PotashCorp’s annual report, provincial mining and other tax receivables for 2009 were $234.6 million, the amount refunded earlier this year (2010), based on taxes overpaid in 2009. The bulk of this number would have been related to Saskatchewan. The Mosaic Co. did not respond to inquiries, and Agrium Inc.’s information was not immediately available.