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Encanto to supply 2.0 million tonnes of potash annually under MOU with Indian firm

Encanto PotashCorp. said April 13 that its memorandumof understanding with India's state-owned MMTC Ltd. for the supply of potash now covers an annual supplyof at least 2.0 million tonnes.

At current prices, the offtake deal, to be sourced from the company'sMuskowekwan projectin Saskatchewan, is valued at US$600 million.

Encanto plans to create a joint trading company with the MuskowekwanFirst Nation to ensure the supply of potash to MMTC in the near future, while thecompany develops the Muskowekwan project.

Under the MOU, MMTC will also act as Encanto's worldwide distributorof potash on an exclusive basis.