New player on potash market

On June 17^th, 2016, Belarusbank and China Development Bank signed a loan agreement for USD 1.4 billion to finance the construction of Slavkali mine with capacity of 2 million tons based on Nijinsky potash deposit. The project’s total cost is estimated at USD 1.7 billion and Belarusbank has to raise the remaining funds. The project would increase imports of equipment and labour from China, as the general contractor is a Chinese company, as well, it will create additional jobs in construction in the Minsk region. After the plant is completed, up to 1500 new jobs may be created. A new player will emerge on the potash market, which will lead to some changes in shares among the largest market players. Slavkaly will not compete with Belaruskali as both companies are likely to coordinate their activities on the international market.