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Fortis Mining buys potash rights in Kazakhstan

An Australian company has purchased the rights to two Kazakh potash minesThursday, February 24, 2011 - Australian mining company Fortis Mining purchased the rights to two Kazakh potash mines this week, the Proactive Investor business news agency reported on Thursday.

The purchase price for the potash assets have yet to be determined and will be clarified once Fortis completes its due diligence at the end of May. Fortis Mining put down a deposit of $1 million through Hong Kong-based holding company Ji�an Resources Limited.

Potash is the common term for manufactured and mined salts that contain potassium in a water-soluble form.

Potash is often used to make fertilizers which help increase water retention, nutrient value and help crops fight disease. The mix is particularly beneficial to wheat and other grains, fruit, vegetables, sugar and cotton.

Potash has also been used in the production of soap and glass.

The mines sit in the western part of Kazakhstan, with one mine located eight miles from a national rail link with China.

Once the mines have been inspected, Fortis Mining will allow the companies currently holding the mines, Panamanian enterprise Wiyot SA and Bates Potash Co. Limited, to have 40 million shares.

The deal must be approved by the relevant governments and Fortis Mining shareholders before being completed.