31 January 2008
Belarusian Potash Company is still interested in Russia’s Silvinit becoming a stockholder, director general says
The Belarusian Potash Company (BPC) is still interested in Russia’s Silvinit becoming a stockholder, BPC Director General Uladzimir Nikalayenka said at a news conference held in Minsk on January 31.
The BPC is currently controlled by Belarus' Salihorsk-based Belaruskaly and Russia's Uralkaly, with both holding 50 percent.
“We would not like to compete with Russian companies in the potash market, that is why we offered Silvinit to join the BPC on equal terms with everyone,” Mr. Nikalayenka said. However, he noted, Silvinit began demanding that the chair of the Supervisory Board should change “on a rotational basis every year.”
Under the BPC charter, this position may only be occupied by a representative of Uralkaly. The position of director general has been reserved for a representative of Belaruskaly, whereas the company’s financial flows are to be managed by the chief accountants, finance directors and economy directors of all stockholders.
“The door is open to Silvinit today,” Mr. Nikalayenka said, adding that there had been no response from Silvinit for a year. The BPC last made the above-mentioned offer eight or nine months ago, he noted.
While meeting with visiting Silvinit Director General Pyotr Kondrashov two years ago, Alyaksandr Lukashenka invited Silvinit to get involved in the Belarusian Potash Company to jointly sell potash fertilizers on the world market. “We will be the strongest and most powerful company that will set to a great degree the rules of the game in the world's potash fertilizer market, which means billions of dollars,” the Belarusian leader said.
If Silvinit joins the alliance of Belaruskaly and Uralkaly, the BPC's share in the world's exports would exceed 50 percent.
Silvinit is one of the largest potash fertilizer producers in Russia. The world’s second-largest Verkhnekamsk deposit of potassium and magnesium salts that Silvinit mines contains an estimated 3,800,000 tons of ore.
The Belarusian Potash Company is said to control more than 30 percent of the world’s potash fertilizer market. It supplies fertilizers to Africa, Europe, India, China, the United States, the Pacific region, and Central and South America. The BPC has offices in Beijing, New Delhi, Singapore, San Paolo and Chicago. //BelaPAN
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