Pro-democracy protests in Eastern Europe are helping to boost the outlook for Saskatchewan’s potash miners. Investors who fled the bad-news sector in recent years may want to take a fresh look at the situation.
Shares of Nutrien Ltd., Mosaic Co. and other companies with potash mines in Canada have bounced higher over the past month. The jump reflects improving fundamentals in the fertilizer industry.
It also reflects geopolitical turmoil – in particular, the decision of many Belarussians to walk off their jobs as part of mass demonstrations aimed at toppling the country’s long-time dictator, Alexander Lukashenko.
The protests matter to Canada’s potash miners because Belarus produces a fifth of global potash exports. Continued chaos in Belarus could disrupt the country’s potash production in the short-term and lead to higher potash prices over the long-term if the country’s state-controlled mines are restructured.