The Potash Mine Takeover

Let's get one thing straight right from the start, this is not a Canadian mine. It is an American mine situated in Canada.

I do not think that the political reasons for the refusal to allow the takeover which are being touted by 'the experts' on the CBC, are the real ones. Of course people wil say that the decision was made based on the fact that there is a minority government that does not want to get into trouble with the opposition for selling Canadian resources down the road; but I am sure the real reason has more to do with the vast investments made by the Americans in the Oil Sands than anything else.

Think about it. With the price of Potash at around $340 a ton, and the American owners making a tidy profit at the moment, why would they want to see their profitable asset taken over before the mine becomes un profitable again in a few years. Why unprofitable? Because the Chinese have an equally large mine coming on stream in 2015 and the Argentinians have another one coming on stream even sooner, and when these two are up and working, the rarity value of the product is bound to come down and hence the price.

As we do nothing but bow to the American's every whim as we live under the Harper (US) dictatorship, this seems to make a lot more sense than most of the arguments I have heard or read so far.

What should have been done is to allow the takeover on the condition that the shares are traded on the TSE, and that way we can all enjoy the profitable ride for the moment and let's see if the Americans try and block it, instead of instructing the Canadians to do it.

In closing, let me say that I was involved with both the Oil Sands and the Potash mine when I was a Management Consultant, a few years ago.