Sunday, July 8, 2012

Sask. potash producers facing U.S. anti-trust lawsuit

Global Saskatoon
Friday, June 29, 2012

A U.S. court has revived a lawsuit against some of the world’s largest potash mining companies.

The lawsuit names Saskatchewan producers: PotashCorp, Mosaic and Agrium, as well as four other international companies, accusing them of forming a “global cartel.”

U.S. purchasers of potash claim that the companies inflated prices of the crop-nutrient by internationally decreasing their output.

The plaintiffs say that prices rose 600 per cent from 2003 to 2008, even though American consumption of fertilizer remained steady.

"PotashCorp has both the policy and practice of adhering to any competition laws anywhere we do business, and that's certainly the case here as well, and these are claims that we will defend ourselves against vigorously when they do go before trial," said PotashCorp Senior Director Bill Johnson.

The lawsuit was resurrected by the seventh U.S. Circuit Court of Appeals, reversing the decision from last September.

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