Saskatoon-PotashCorp says it is entitled to potash from The Mosaic Co.’s Esterhazy potash mine in Saskatchewan at least until 2012, according to recent filings with the U.S. Securities and Exchange Commission. The matter is currently before the Saskatchewan Court of Queen’s Bench. Mosaic argues that the tolling agreement ends by Aug. 30, 2010 (GM July 27, p. 12) and also that the delivery rate tops out at 1.24 million mt/y. PotashCorp says its annual take under the agreement is between 453,600 mt and 1,313,000 mt. In the meantime, PotashCorp said it gave Mosaic a force majeure notice on Esterhazy on April 9, 2009, as a result of the impact of the global financial crisis on potash demand, sales, and inventory. However, PotashCorp now says that as product begins to move it is proportionately beginning to take tons again. In the meantime, Mosaic has filed a counterclaim against PotashCorp asserting that it breached the mining and processing agreement due to its refusal to take delivery of the potash.
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