Do we really want the Chinese to control
the company that has the largest capacity to produce fertilizer?
45 percent of Canada Potash Corporation's production
is sold to farmers in North America.
The big worry, in part, is that
the Chinese could seek to redirect that supply to China,
starving other countries of a much-needed commodity.
CHINA FOODFIGHT FOR CANADA POTASH
Are the Chinese coming?
A consortium of state-backed Chinese companies and financiers
may make a takeover offer for Potash Corporation,
the Canadian fertilizer company located in the prairie province of Saskatchewan.
If you care at all about the future of the world’s food supply,
you care — whether you know it or not — about Saskatchewan.
For the past couple of months the Canadian government has been contemplating allowing the sale of another natural resource - this time one of the most valuable minerals on the planet - potash - to the Communist Chinese:
Chinese deal for Potash would wreak havoc, Financial Post, Oct 5, 2010 (If the world's largest fertilizer company is to be taken over, the province of Saskatchewan could do far worse than [Australian] BHP Billiton Ltd, a new report says. While the government has expressed concern about the economic effects of BHP's offer for Potash Corp of Saskatchewan Inc, a possible Chinese-led consortium, which is said to be in the works, could be fiscally disastrous for the province. In a report examining the various scenarios in the fight for control of Potash, the Conference Board of Canada has given a stark warning about the possible result of a Chinese state-owned enterprise (SOE) like Sinochem acquiring the fertilizer giant. "It seems fairly certain that even if Sinochem puts together a financing consortium, the underlying motivation would be to secure access to a key commodity", the report said. Since China is the world's largest consumer of potash, Chinese ownership of the world's largest potash company would likely result in soaring levels of production, a plummeting price and billions in lost revenue for Saskatchewan, an outcome that could "wreak havoc" on Saskatchewan's finances, the Conference Board said....)
Here are some of the earlier headlines:
Red China eyes Canada Potash (anti-Chinese sentiment rising in potash province)
Canada allow sale if China pay top bid for potash (politicians on trade-trips soliciting communists)
Securing food a top priority for Red China (owns potash projects in Canada & Congo)
Chinese eating monkey brains in 1979 (now want Canada beef says Potash CEO)
China's Sinochem weighs Canada Potash bid (Communists also scooping up oil/gas/iron ore...)
Canada allow Red China takeover potash motherlode (most important crop fertilizer on planet)
Canada's potash feeds the world (gov't plans to sell national treasure to Red China)
China in foodfight for Canada potash (Saskatchewan is breadbasket of world)
Bloom/AFP/NP/Star, Aug 24-Sep 2, 2010
Four months ago, on June 22, 2010, Canada's spy chief - the head of the Canadian Security Intelligence Service (CSIS) - dropped a bombshell when he warned that Canadian politicians were being influenced by foreign governments - including China - and rubber-stamping deals for our natural resources. See CHINA IN CANADA SAY SPY CHIEF. In the interval, politicians at all levels, from all parties, have been junketing back and forth to China swinging deals with the Communists selling ownership of our wood, cattle, wheat, oil, gas, copper, iron ore, nickel - you name it... and now potash.
Finally, last week, the top politician of the province of Saskatchewan (where Canada's supply of potash is located) spoke out againt its "hostile takeover" by a foreign country. He's talking about the bid by an Australian company BHP and not the rumoured so-called "friendly" bid by a "white night" Chinese company Sinochem which is forming partnerships behind the scenes, including with Canadian Indians. But otherwise the premier's sentiments are right on (and I've substituted China for Australia where indicated):
Saskatchewan Premier Brad Wall wrapped himself in the flags of the province and the country Thursday in his bid to stop the largest takeover in Canadian history. In a move that could end up pitting the province against the federal government, Wall passionately opposed [China's] mining giant [Sinochem] hostile bid to acquire Saskatoon-based Potash Corporation. The small-c conservative premier who took office in 2007 extending an olive branch to Ottawa, decried the deal as anti-Saskatchewan and anti-Canadian. "We need to think about how another foreign takeover in our mining sector would be for the country, for Canada's influence over strategic resources," Wall told about 500 people at a Regina Chamber of Commerce luncheon. "Canadian-led mining companies are at risk of becoming an endangered species. This is the last and the biggest one some have said." Wall touted Potash Corp as a Saskatchewan stalwart. It was created by the provincial government in 1975 and privatized in 1989. Potash is a key nutrient used to make fertilizer and Potash Corp is the world's largest producer of potash.
Food control was used as a weapon by the Communists in setting up their brutal totalitarian tyrannies in China and Russia and it's conceivable that history could repeat itself here in America. See LENIN-MAO MAN-MADE STARVATION & MADE-IN-CHINA FOOD? & CHINESE GULLIVER IN AMERICA & WHERE'S THE BEEF GONNA GO? & WEATHER-FOOD-WATER-AIR CONTROL & TAKE NOT OUR DAILY BREAD
If Canada allows the world's greatest supply of crop fertilizer to fall directly, or indirectly, into the hands of China, or Russia, then we are doomed as a nation, and we'll be taking other free nations down with us. Our way of life - OUR VERY LIVES - depend on the Western World being food independent and in control of our own food and energy resources. ~ Jackie Jura
Russia planning Canada Potash takeover (tycoon/Putin/banks behind deal) & Russia considers bid for Canada's Potash, Bloomberg, Nov 3, 2010 (...Russia’s biggest fertilizer companies have been studying combining operations to expand output as shrinking arable land and rising world food demand spur consumption of their products. OAO Silvinit, Russia’s largest potash producer, and rival OAO Uralkali are both controlled by billionaire Suleiman Kerimov and his partners, who plan to merge the two companies. OAO PhosAgro, the largest maker of phosphate fertilizers in Russia, asked the state to help fund a purchase of Saskatoon, Saskatchewan-based Potash Corp., Vedomosti said today, citing an Oct. 20 letter from PhosAgro Chairman Vladimir Litvinenko to Russian Prime Minister Vladimir Putin. PhosAgro said by e-mail that it wouldn’t comment on the report until Canada rules later today on BHP Billiton’s unsolicited offer for Potash Corp....In his letter to Putin, Litvinenko said Canadian banks had agreed to provide half the funding for a takeover and Russian banks should provide the remainder, according to Vedomosti. While there has been reported interest from Chinese and Indian companies in making a counterbid for Potash Corp., nothing has materialized so far, Troika added....). See RICH RUSSIANS LIKE LENIN
Canada Indian chiefs join China potash bid
by Jason Warick, National Post, Oct 28, 2010
In what seems like an unlikely bid, a group of Saskatchewan First Nations is stepping into the takeover battle for Potash Corp of Saskatchewan with a planned offer of its own. The First Nations group said it is collaborating with merchant banks, pension funds and Chinese investors to prepare a multibillion-dollar competing bid for Potash Corp. -- currently the target of an almost $40-billion hostile takeover attempt by BHP Billiton. A flurry of meetings has taken place in the past week between provincial ministers, First Nations leaders, potential investors and Potash Corp officials, according to a spokesman for a group called the Indigenous Potash Group. "We cannot be left out. We are moving on this," said spokesman Rick Gamble, who is also chief of the Beardy's and Okemasis First Nation. "This is exciting stuff. We're ready to go". Mr. Gamble and the province's other chiefs were gathered Wednesday at the Whitecap Dakota First Nation, 40 kilometres south of Saskatoon for the Federation of Saskatchewan Indian Nations assembly. If even a partial bid was to emerge from the group it would be a bizarre twist in a heated battle that has been long on drama but short on counter offers. While there had been some rumblings of a bid emerging from a state owned Chinese player, most observers say there is no group with the size or track record to compete with the colossal BHP [Australia], the world's largest mining company. The province's First Nations are also demanding Ottawa halt the takeover of the world's biggest potash producer. A submission is being made by the Federation of Saskatchewan Indians to Investment Canada, the federal body that approves or rejects such takeover bids. Should Investment Canada approve the BHP takeover, First Nations officials have drafted an immediate application for a court injunction. Premier Brad Wall has also asked Ottawa to block the takeover bid, saying it is not in the strategic interest of the province or the country to sell the corporation. Potash Corp. spokesman Bill Johnson declined to comment, saying the company will not discuss any "potential transaction."
Potash is a mineral salt high in potassium, mined for use in agricultural fertilizers. It dramatically increases crop yields and is particularly important to China as its massive population gains a taste for meat. First Nations have not been consulted on this potentially massive transaction, Mr. Gamble said. Recent Supreme Court of Canada rulings have dictated that First Nations be consulted and accommodated on resource issues that affect them. "It's time that we take a stand. This is a crucial time," said federation vice-chief Lyle Whitefish. Assembly of First Nations Chief Shawn Atleo addressed the assembly yesterday, and stressed the importance of the potash debate. In an interview following his speech, he said it will be a "benchmark for the whole country." Mr. Atleo said the AFN [Assembly of First Nations] will support Saskatchewan First Nations in their fight to be "at the table" in any potash decisions. Still, at least one First Nation's group has made peace with BHP. The chief of the George Gordon First Nation said he signed a deal at BHP's Saskatoon office yesterday. The agreement covers employment and business opportunities related to the development of the company's proposed Jansen potash mine. That group's chief, Glen Pratt, said he hopes the agreement ushers in a "new standard" of potash participation for the province's aboriginal communities. "When you think of the amounts of money -- potash revenues -- that have been made by the other potash mines, there is literally no legacy in First Nations communities," he said. "So we're hoping BHP will create a new standard, a standard that involves aboriginal communities, a standard that involves First Nations and the development of their mine and the operation of their mine.". Go to INDIAN LAND CLAIMS DISBELIEVED & TAKING CANDY FROM INDIAN BABY
Beef demand has room to grow, National Post, Oct 2, 2010
A beef cow waits to be auctioned. Rising demand for meat in emerging markets such as China will mean increased need for potash. It's a simple delicious fact to people like Bill Doyle, chief executive of Potash Corp of Saskatchewan: Consumers in China and other emerging markets will use rising incomes to buy more beef, stoking demand for the fertilizers needed to grow animal feed....Potash Corp, subject to an almost US$40-billion takeover bid from [Australian] mining giant BHP Billiton Ltd is the world's largest producer of the mineral, and has generated an increasing share of its revenue in the past three years from emerging markets.
Canada-China warm ties might not aid Potash bid
by David Ljunggren, Reuters, Oct 15, 2010
Canada has toned down its criticism of China's human rights record and stressed the need for trade, but the political risk of approving a Chinese-led bid for Potash Corp could be a step too far. Potash, the world's biggest fertilizer producer, is fighting off a hostile takeover bid from Anglo-Australian mining giant BHP Billiton and there are reports of a possible white knight approach from a consortium led by Chinese state firm Sinochem. This would pose tricky challenges for the minority Conservative government, which includes legislators who have expressed sharp anti-Chinese sentiments in the past. "There are some in the party who still believe firmly that China is a godless totalitarian country with nuclear weapons and state-owned enterprises aimed at us," Professor Paul Evans, director of the University of British Columbia's Institute of Asian Research, said of the Conservatives. And opposition parties could also use a Chinese bid as an issue in an election expected next year. China has a mixed public image in Canada, where an outcry over human rights helped scupper a 2005 bid by China's state-owned Minmetals for mining firm Noranda. Prime Minister Stephen Harper came to power in early 2006 as a firm critic of China, especially over human rights. In the last two years, convinced of the need to engage the Asian superpower, he has boosted contacts and pushed for more trade. "This change in their (Ottawa's) attitude and approach is not one that is shared by all, or even maybe the majority, of caucus members," Evans told Reuters on the margins of a two-day symposium on Canada-China relations.
Sources say Sinochem -- perhaps mindful of what happened to Minmetals -- wants a guarantee from Canada that any bid it might make for Potash Corp would have a fair chance. The Conservative government has refused to discuss the idea publicly. There are 1.3 million people of Chinese descent in Canada, a country of 34 million, but, although strong, the relationship is not always smooth. Canadian intelligence agents regularly complain about Chinese espionage and this July Canada's spy chief suggested ministers in two provinces were under Chinese influence, prompting a storm of protest. The governing Saskatchewan Party in the province of Saskatchewan, where Potash Corp is based, has also expressed concern over a possible Chinese bid. David McGrane, professor of politics at the University of Saskatchewan, said some Saskatchewan Party members were highly suspicious of the Chinese. The party comprises many members of the right-wing Reform movement, one of two parties that merged to form the Conservative Party. "The Conservatives remain of two ideas when it comes to the Chinese and I don't think they've fully resolved it themselves. How that plays out in terms of Potash is going to be interesting," he told Reuters.
Harper's opponents are already gearing up to fight a potential Sinochem bid. "We've called on the prime minister to stop rubber-stamping foreign takeovers," said a spokesman for the left-leaning New Democrats, calling for public hearings on any decision the government might take. The prospect of a divisive fight on the eve of an election could persuade the Conservatives against giving Sinochem any kind of favorable treatment. "They are facing a tough decision and they have not prepared Canadian opinion on this one. So it makes me think they're looking for a compromise," Evans said. Lan Lijun, China's ambassador to Canada, told reporters on Thursday that "certainly we are concerned about this hostile (BHP takeover bid) and we'll follow it very closely." At a reception on Canada-China relations on Wednesday, Harper focused on what he said was the promising outlook for trade with China. He made just one mention of human rights, which he said was not an obstacle to economic cooperation.
Canada warms to Chinese investment
by Peter Koven, Financial Post, Oct 14, 2010
Stephen Harper, the Prime Minister, spoke out in favour of foreign investment from China yesterday as speculation continues to mount about a China-led offer for Potash Corp. of Saskatchewan Inc. Speaking at a reception in Ottawa celebrating 40 years of Canada-China diplomatic relations and attended by Chinese ambassador Lan Lijun, Prime Minister Harper stressed that the two countries are in a position in which they can co-operate for their "mutual benefit." "Chinese companies look for the best places to do business; Canada has low and falling tax rates, a low debt-to-GDP ratio, and an environment welcoming to foreign investment," he said in the speech hosted by the University of Alberta. That was a long way from saying he would endorse a potential offer of $50-billion or more for the world's largest fertilizer company, but it was a sign that he welcomes ongoing Chinese investment in Canada's resource sector, which has increased since the financial crisis in late 2008.
[Canada's] PotashCorp is trying to solicit a friendly takeover bid [from China] to top the $40-billion hostile offer from BHP BillitonLtd [from Australia] Ltd. From the start, the board has focused on state-owned Asian entities. They are eager to invest in foreign resources and can access huge amounts of capital through their domestic banks. Any China-led bid, which would likely come through the chemical giant Sinochem, would be extremely controversial and would require approval from the Prime Minister's Office.
Yesterday, PotashCorp appeared to try and downplay concerns about a friendly takeover from a foreign entity [Communist Chia] when it released its "Pledge to Saskatchewan" proposal. The statement made a number of commitments to the province, and implied that any friendly bidder for the company would endorse them as well. "We intend to ensure the purpose and spirit of this company are maintained in every circumstance as we move forward," chairman Dallas Howe said. The "Pledge" included a commitment to the Canpotex marketing group (which BHP hopes to leave), continuing the company's strategy of matching potash supply to demand, and commitments to community programs and a stronger Aboriginal workforce. The most notable part of the statement was a promise that all senior officers will be based in Saskatchewan, and that other corporate functions would relocate to the province as well. Chief executive Bill Doyle currently works out of Chicago, which has drawn criticism from within Saskatchewan. BHP retorted that the statement is "clearly a response" to BHP's own commitments to the province. The company has promised to keep the head office of its potash business there, and also to increase spending on community programs over Potash Corp.'s current levels if it buys the company. "BHP Billiton is committed to Saskatchewan and Canada. That's why we have proposed returning control of the potash business to Saskatoon and transferring the relevant management jobs currently based in Chicago back to the city," it said. BHP's offer is set to expire on November 18, though it could be easily extended. Investment Canada is expected to rule on it next month, though that deadline could also be extended. In a letter to employees this week, Mr. Doyle said PotashCorp is still "evaluating several alternatives for our company." He also said that the board is urging the Canadian government "to remain open and to provide a level playing field as it reviews the impact of any potential transaction."
China to play big role in Canadian energy, minerals
China People'Daily, Oct 13, 2010
China's investment in Canada's energy and minerals sectors is to double in the next five years as the world's second-largest economy hunts globally for resources to sustain its rapid economic growth, said Peter Harder, president of the Canada China Business Council. "Canada has a rich reserve of natural resources and it needs overseas investments to explore them. That matches China's growing investment appetite in the area," Harder told China Daily on Tuesday. China's investment appetite in Canada's energy and minerals sectors has surged in recent years, the latest example being Sinochem's potential bid for the Canadian fertilizer giant Potash Corp. The State-owned company is reported to be planning a bidding consortium for Potash, which controls about a quarter of the world's potash production capacity, after the producer rejected a $39 billion bid by BHP Billiton as "inadequate"... Though some fear that the Canadian government may block Sinochem's bid for Potash, the president of the Canada China Business Council [Peter Harder] said the government harbors no hostility toward Chinese investments. "As many high-level Canadian officials have said on many different occasions, Chinese investments in Canada's energy and minerals sectors are welcomed," said Harder. "As long as takeovers or mergers have a net benefit for Canada, it doesn't matter if it is (South) Korea, Brazil or China that made them.".
Worrying Over China and Food
by Andrew Sorkin, NewYorkTimes, Oct 12, 2010
... Even for free marketers who say they believe that transactions should be able to cross borders without political constraints, the questions being raised in Saskatchewan and elsewhere are the ones that need to be asked. Indeed, concern that politics may drive Chinese deal-making has grown amid recent reports that China has banned exports of rare earth minerals to Japan. Prime Minister Wen Jiabao of China has denied that the country has issued such a prohibition, but he acknowledged that the owners of rare earth metals may have halted shipments because of their own feelings toward Japan. (At the same time, however, another Chinese deal announced on Monday — Cnooc’s $1.08 billion investment for a third of Chesapeake Energy’s oil and natural gas shale assets in Texas — is not expected to meet political resistance because the stake is passive.)
In the case of Potash, the Sinochem Group, China’s largest fertilizer company, has been exploring a possible bid, according to several media reports, and may win backing from funds like the China Investment Corporation. “It seems fairly certain that even if Sinochem puts together a financing consortium, the underlying motivation would be to secure access to a key commodity,” the Conference Board of Canada wrote in a report about possible Chinese interest in Potash. “Food security is an overriding concern in China, arguably even more important than access to industrial materials.”
It is that kind of talk that has many analysts betting that the Chinese do not ultimately move ahead with an offer. “We believe that any bid from a Chinese state-owned entity would likely face significant Canadian regulatory scrutiny,” Glyn Lawcock, an analyst with UBS, wrote in a note to investors. Under Canadian law the deal would have to pass muster with the government through Investment Canada, which would need to rule that the deal was a “net benefit” to the country....
China to play big role in Canadian energy, minerals
China People'Daily, Oct 13, 2010
...Though some fear that the Canadian government may block Sinochem's bid for Potash, the president of the Canada China Business Council [Peter Harder] said the government harbors no hostility toward Chinese investments. "As many high-level Canadian officials have said on many different occasions, Chinese investments in Canada's energy and minerals sectors are welcomed," said Harder. "As long as takeovers or mergers have a net benefit for Canada, it doesn't matter if it is (South) Korea, Brazil or China that made them.".
What is potash? (...Potassium fulfills numerous vital functions in various processes in plants, animals and humans. For adequate nutrient supply of potassium, soil reserves are essentially required, which commonly contain more potassium than any other nutrient, including nitrogen. For an adult human being, approximately 2 grams of potassium (K) is required per day, even though a typical person will take in 2.8-4.5 grams/day. The rich sources of this nutrient in human diet are milk, fruit juice, root vegetables and bananas. Nitrogen, phosphorus, and potassium are three of the most essential nutrients that a plant needs to grow. Potash plays an important role in helping plants to absorb potassium required to thrive. There are no known substitutes for potash. Potash has three main uses: fertilizer, livestock feed supplements and industrial processes. 95% of world's potash is used in fertilizers, while the rest is used for feed supplements and industrial production. Potash is a key ingredient in fertilizers that enhances water retention of plants, increases crop yields and plants' disease resistance. In feed supplements, the key function of potash is to contribute to animal growth and milk production. Potash is also used to produce glass, ceramics, soaps etc.)
Chinese deal for Potash would wreak havoc (Disaster Warning), by Tim Shufelt, Financial Post, Oct 5, 2010
Red China eyes Canada Potash (anti-Chinese sentiment rising in potash province) & Canada allow sale if China pay top bid for potash (politicians on trade-trips soliciting communists) & Securing food a top priority for Red China (owns potash projects in Canada & Congo) & Chinese eating monkey brains in 1979 (now want Canada beef says Potash CEO) & China's Sinochem weighs Canada Potash bid (Communists also scooping up oil/gas/iron ore...) & Canada allow Red China takeover potash motherlode (most important crop fertilizer on planet) & Canada's potash feeds the world (gov't plans to sell national treasure to Red China) & China hungers for Canada's breadbasket (China in foodfight for Canada's potash). Bloom/AFP/NP/Star, Aug 24-Sep 2, 2010
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