Court Ruling Backs Potash Corp.
Mosaic Co. must continue to supply Potash Corp. with potash from one of its Saskatchewan mines, a Saskatoon Court of Queen's Bench judge has ruled.
July 6, 2011
Justice Neil Gabrielson made the order, which will see Mosaic continue to supply its competitor with the valuable mineral until the two parties go to trial over a supply dispute next year. For years, Potash Corp. and Mosaic have disagreed over the end date of a contract signed between the firms' predecessors in the 1970s.
At stake is hundreds of millions of dollars worth of potash, to which both parties lay claim.
Since 1971, Mosaic has been sending up to 1.24 million tonnes of processed potash annually to Potash Corp. from its Esterházy mine, where Potash owns 15,000 acres of raw potash reserves. Mosaic believes it will satisfy the terms of the supply contract this summer, while Potash says it is owed more potash under the deal. In May, Mosaic informed its competitor it would stop shipping potash from Esterházy on Friday. However, the court order forces Mosaic to reverse its decision.
Gabrielson ordered Mosaic to take no steps to terminate the agreement with Potash Corp., interrupt or terminate the supply of potash to its competitor and to continue to supply potash to PCS.
(Source: Edmonton Journal)