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SW Saskatchewan | With natural resources being under the control of the provinces, and Saskatchewan being very aware of what makes potash royalties pay our bills, it is unlikely that they will allow Billiton a free hand in the Potash Market.
Virtually all of the Potash reserves are owned by the Province, BHP, PCS or anyone has to get a production license as well as an exploration permit-the province can be and probably is in the drivers seat here.
As with any good cartel, profits are made by limiting production. BHP is setting as a lure increased Potash production-which would drive down the Province's profits from the industry.
If BHP wants into potash, any new mine is a pipedream that would only begin production a generation down the road. They will have to buy out PCS or another major. Otherwise they get to sit on the sidelines and chatter as does any penny stock mining promoter.
And if the want to buy PCS, go ahead, but the price will not be in $220/share range-more likely a bottom of $250 and up to $300-325. | |
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BHP takeover of Potash Corp?
