India's state-run Rashtriya Chemicals and Fertilizers Ltd is considering a possible $1 billion investment in Canadian potash mines to secure long-term supply of the soil nutrient, the company's chairman said.
India is the world's No.2 buyer of potash, and its major suppliers including Potash Corp, Mosaic Co, and Agrium Inc. The country meets its entire potash requirement through imports.
"We would appoint a consultant who will identify potash mines in Canada where we can invest, maybe as a joint venture partner," R. G. Rajan told Reuters late on Friday. The potential investment would be supported by the Indian government, he said.
India imported about 2.7 million tonnes of muriate of potash, or MoP, at an average price of $500 per tonne during the fiscal year ended March, government data showed.
Separately, Rashtriya Chemicals, also India's No.3 urea maker, expects the government to start a share sale in the company during the quarter ending March 2013, Rajan said.
The sale would reduce the government's holding in the company to 80 percent from its current 92.5 percent, he said.
