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John Tumazos wrote a quick overview
of BHP Billiton's bid for Potash Corp., which had long been rumored,
even though John visited Newmont Mining today in Nevada and is visiting
five smaller Nevada mining firms this week. John also went underground
on August 6th at Vale's Aracaju regional potash mine in Brazil, and has
been working on this sector.
We are concerned that major
fertilizer producers follow United Nations forecasts of near 2%
long-term growth in food and fertilizer demand, which include such
optimistic components as an end to world malnutrition, a shift to meat
away from grains in third world diets and increased biofuels uses in
addition to population growth. BHP Billiton and Vale are new
entrants greatly expanding in potash markets, a variety of
junior companies with to start up and the traditional producers seek to
expand as well.
We long for simple things like
dividends and share repurchases, and are concerned the "grass is not
greener" in the fertilizer sector.
Faithfully,
Joseph Reagor
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Copyright © 2008 John Tumazos Very Independent Research,
LLC
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