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Prospect Global signs potash supply agreement with Sichuan Chemical

8:37 AM MDT | October 22, 2012 | Lindsay Frost

Sichuan Chemical Industry Holding (Chengdu, China) has signed an agreement with Prospect Global Resources (Denver) to purchase at least 500,000 mt/year of potash, or 25% of the projected output, from Prospect Global’s planned American West Potash field at Holbrook, AZ. The $2-billion deal is over a 10-year period, and is a take-or-pay contract—backed by a letter of credit—and also gives an option for the American West field to sell and Sichuan Chemical to purchase an additional amount of potash, the companies say. The American West site is...

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