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Arab Potash Co. and Yara enter potassium nitrate MoU

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World Fertilizer,

Arab Potash Co. has announced that it has entered a memorandum of understanding (MoU) with Yara to explore possible collaboration on potassium nitrate.

Both parties will reportedly explore and evaluate the possibility of doubling the production capacity of Kemapco – Arab Potash Co.’s potassium nitrate producing subsidiary – and, accordingly, Yara is targeting a minority position (30%) in Kemapco, with a 100% product offtake (except some local and regional markets). Potassium nitrate is a key product for fertigation, which is a fast-growing segment that both Yara and Kemapco are aiming to develop further through this collaboration.

Kemapco operates a single potassium nitrate plant in Aqaba, Jordan. Last year, production amounted to 130 kt of potassium nitrate, with sales amounting to approximately US$105 million.

Terje Knutsen, EVP Crop Nutrition, Yara, said: “With this MOU we are pleased to establish a collaboration of strategic value. Our farmer centric approach means that we offer a full range of nutrients and solutions to meet farmers needs in all climates and for all soils. Fertigation is the combined application of water and nutrients to a crop, a mix of fertilizer and irrigation in the same application. The collaboration with Kemapco will facilitate exchange of technology and know-how, and secure access to potassium nitrate that will strengthen our fertigation offering.”

Jamal Al-Sarayrah, Chairman of the Board of Directors, Arab Potash Co., added: “The signing represents an important step in the plan to grow our business, we believe that our high quality product will be a great fit for the growing potassium nitrate demand. We are pleased to have the opportunity to grow our business with Yara’s extensive sales network.”

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