|
SW Saskatchewan | Billiton doesn't want to build-too expensive and it would either have to run at half capacity or destroy the Canpotex Cartel.
The "shell game" with proposed mines is to give them leverage to do a buyout.
If Billiton could find a major (and cheap) Potash reserve somewhere else they would have a strong bargaining position.
If they were to develop a mine in a high cost production area(say Afghanistan), the Cartel would let them be- drop the price below their cost of production a few times and then watch the vultures start to gather around Billiton.
The Govt of Sask holds the strong hand here-Grant Devine was right(he had a PhD in Economics from Ohio) and knew that the govt could make as much or more money facilitating a Cartel as they could owning and operating )not very efficiently) PCS.
Now do Brad Wall and Bill Boyd( a tech school certificate in Farm Welding) have as good a grasp on the economics of the situation? Should have as its not exactly rocket science now that Grant and Bill Doyle have wrote the "How-to" manual on running a Cartel(Colonel Barley a.k.a Andy Schmidtz from Central Butte SK, Berkeley California and University of Florida wasn't able to make his idea of a wheat Cartel fly but he had more success selling this idea.)
They may screw up, being politicians, but this one is so simple I can't see stupidity botching this one! | |
|
WOW fertilizer stocks
