ICL Fertilizers has completed a new potash supply agreement with its primary customer in India.
Under the terms of the agreement, ICL Fertilizers will supply the customer with one million tons of potash for an 8-month period from August 2011 to the end of March 2012 at an average price of $490 per ton. This is $120 per ton higher, on average, than the price established in the agreement that was in effect during 2010-2011. ICL Fertilizers also has the option to supply an additional 100,000 tons under the same terms.
ICL Fertilizers has also signed additional agreements with other Indian customers to supply an additional 415,000 tons of potash (including an optional quantity of 25,000 tons), bringing the total potash to be supplied to Indian customers to approximately 1.5 million tons.
These agreements emphasize the importance of India as one of ICL Fertilizers’ primary target markets and underscores the logistical advantage of the Company’s location in Israel.