Potash Miners Positioned for Takeover

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"Short-term pressure will remain."

Potash producers continue to struggle in today's economic climate. Analysts are confident in the long-term health of the sector, but in the short-term, pressure will remain. Global economic uncertainty continues to reign over the market, and this will continue to affect farmer's apprehensions in returning to market.

Low prices and low sales volumes are bound to leave some miners to struggle, and this leaves them ripe for acquisitions. Takeover activity in the potash market has heated up since the economy plunged into a recession.

According to Investment research specialist Fundamental Research Corp (FRC), the recent acquisitions have increased the focus on potash projects by a number of majors as well as state-backed Chinese groups. FRC also noted that most of China's potash imports come from Canada, and Chinese state-run mining companies are also showing an interest in projects.

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