German potash mine draws second bid

01 October 2008 18:48  [Source: ICIS news]

TORONTO (ICIS news)--A second bidder has put forward a proposal to restart an idled potash mine in eastern Germany, a government agency said on Wednesday but did not identify the bidder.

 

German media reported that the second bid for the Rossleben potash mine in Thuringia came from K-UTEC AG Salt Technologies, a potash research and technology firm, on behalf of a project group that included an international fertilizer producer and a German construction company.

 

K-UTEC AG was not immediately available for comment.

 

German potash producer K+S said on Tuesday it submitted a proposal to restart Rossleben, involving a potential investment of over €600m ($840m) and the creation of 700 permanent jobs.

  

Rossleben was idled in 1991 following Germany’s reunification.

 

It is administered by Gesellschaft zur Verwahrung und Verwertung von stillgelegten Bergwerksbetrieben mbH (GVV), a government agency charged with selling off idled mines in eastern Germany.

 

GVV confirmed it received two proposals for Rossleben in time for the 30 September deadline.

 

GVV was assessing the proposals and would later begin negotiations to sell the mine, it said. The process would take some time, it said, but added it expected to provide an update in early 2009.

 

Rossleben is estimated to have enough reserves to sustain an annual capacity of 1m tonnes for about 30 to 40 years, based on preliminary findings, according to K+S.

 

($1 = €0.71)

 

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Author: Stefan Baumgarten
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