Belarus may revive potash cooperation with Uralkali

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MINSK/MUMBAI, June 23 (Reuters) - Belarus is considering cooperating with Russian potash producer Uralkali, it said on Thursday, the first sign the two sides might work together again since Uralkali broke off a potash alliance in 2013, triggering a fall in global prices.

Uralkali is the world's biggest producer of potash, a widely used nutrient for crops, while state-controlled Belaruskali is the second largest.

"New Uralkali shareholders are coming to me every month saying: 'accept us'. We are not against it - let's unite, on our conditions," Belarus President Alexander Lukashenko said at an event in Minsk.

"Let's resume work and agree how much we will produce."

Lukashenko did not disclose his conditions. The previous joint venture was based in Minsk, that time a crucial condition for Belarus and the main concern for Uralkali.

Uralkali declined to comment. Its major shareholder, Uralchem, was not available for comment.

The collapse of Uralkali's joint venture with Belaruskali triggered a fall in global prices as competition between producers intensified. Prices have not yet fully recovered.

Lukashenko also said Minsk signed a new potash supply contract with India on Wednesday, although Belarussian Potash Company (BPC), a trading arm of Belaruskali, later said it was still finalising the deal.

"I think it's a wonderful contract, taking into account the current prices," Lukashenko said, without disclosing the price or volume to be supplied.

BPC said in its statement it expected to sign the contract in June.

A major Indian customer, who asked not to be named, told Reuters both sides were close to signing the deal.

In 2015, Uralkali was the first major producer to sign a one-year contract with India to supply 800,000 tonnes of potash at $332 per tonne.

Apart from Belaruskali and Uralkali, Canada's Potash Corp of Saskatchewan and Agrium Inc, U.S.-based Mosaic Co and Germany's K+S AG supply the crop nutrient to India.

India and China, the world's biggest fertiliser consumers, usually sign contracts for potash earlier in the year. This year, deals were delayed by high stocks built up by farmers.

India's deal, if signed, will be a rare instance of that country signing a potash supply contract with a major producer before China. Contracts with China usually set a price floor and benchmark for other markets.

(Reporting by Andrei Makhovsky in Minsk, Rajendra Jadhav in Mumbai and Polina Devitt in Moscow; Writing by Polina Devitt; Editing by Mark Potter)