OREANDA-NEWS. April 02, 2012. The state-owned Belarusian company OJSC Belaruskali is set to sustain potash fertilizer transshipment via the port of Klaipeda at 6 million tonnes in 2012, Belaruskali told reporters.

For the time being, the cost of shipping a tonne of Belarusian potash fertilizer through Lithuania’s Klaipeda is approximately USD 10 less expensive than it would be via Latvia, Belaruskali said.

Belaruskali is all for diversifying fertilizing shipping channels, however Ventspils is not an option at the moment because of high logistic expenditures.

Back in late 2009 Belaruskali signed a three-year contract with Latvia’s Kalia Parks mineral fertilizers terminal in the Ventspils free port, however the contract does not specify the annual volume of Belarusian potash fertilizer to be shipped via Ventspils.

As previously reported, Belaruskali reported a 15% decline in potash fertilizer export in Jan-Feb 2011 to 1.5 million tonnes.

The world’s leading producers reported a decline in potash exports, so it is a global trend, Belaruskali said.

As soon the situation improves, Belaruskali is ready to accelerate exports. In the meantime, the reduced demand for potash fertilizer prompted Belaruskali an idea to close one of its mining sectors for capital repairs. In January they put in hold mining sector #3 and sector #2 was closed down in February. The plan is intended to optimize potash inventories. Starting March 5, 2012, all four mining department of Belaruskali will be operating at full capacity.

Through Lithuania’s Klaipeda and Ukraine’s Nikotera ports, Belaruskali exported around 7.7 million tonnes of potash fertilizer in 2011, worth USD 3.2 billion, to compare with 6.8 million tonnes and USD 2.06 billion in 2010, respectively.

The state-owned Belarusian company OJSC Belaruskali is one of the world’s largest manufacturers of potash fertilizers, employing about 18,440 personnel. It operates the Starobinskoye potash salts deposit and comprises four mine groups, auxiliary shops and support units.

Belaruskali controls 16% of the world’s potash fertilizer market.

The government of Belarus assessed the 100% stake in state-owned OJSCBelaruskali at USD 30 billion.