African Potash secure a $500/t price for fertiliser in Zambia

Aim-listed exploration company African Potash has reached an agreement to establish a sale price of $500/t for 50 000 t of fertiliser product.

African Potash executive chairperson Chris Cleverly said the deal would see NPK and urea fertilisers delivered in Zambia at a price that “supported the growth and development of the African farmer”.

The price agreement, announced on Friday, followed the conclusion of recent meetings in Lusaka, Zambia, between representatives of African Potash, the Common Market for Eastern and Southern Africa (Comesa), fertiliser suppliers and a Zambian distributor.

Cleverly noted that African Potash was confident that it remained on track to meet the 500 000 t delivery target within a year of agreeing its memorandum of understanding (MoU) with Comesa, which was signed in August.

African Potash added that the MoU with a Zambia-based fertiliser supplier remained subject to a legally binding agreement and updates would be provided “in due course”.

Having set this sale price, the company’s pre-tax profit margin on this transaction was expected to be 6%. Initial NPK and urea fertiliser deliveries had arrived in Africa and were awaiting customer approval, advised African Potash.

The adviser to this transaction was Butterfly Corporate Finance.

Additionally, a trade finance facility of up to $50-million was currently being arranged through African Potash’s exclusive banking adviser Loita Capital Partners International.

The facility would remain in place until the company’s fertiliser trading operations become self-funding. Further details on the facility would be announced once finalised.

Previous Vegetable Processing Plant
Next EU Approves Barloworld-BayWa JV For Zambian Agricultural Mechanization

About author

You might also like

Business 0 Comments

NCZ targets 100,000metric tonnes of D compound fertilizer

NITROGEN Chemicals of Zambia (NCZ) is targeting to produce 100,000 metric tonnes of D Compound fertiliser this year. Compound fertilizers are made using basic fertilizer materials, such as NH3, ammonium

Business 0 Comments

$600m set aside for Zambia by WB

$600 million has been set aside for Zambia by the World Bank to put resources into farming, vitality, rustic streets and spending support throughout the following three years. Clergyman of

International 0 Comments

High-speed Zambia-Mozambique rail on the cards

A US-based company, Railnet International, is proposing to Fund an $11 billion medium speed rail line between Zambia, Zimbabwe and Mozambique. Railnet CEO, Donald Kress, said the company was in