India eyeing $6-7 billion stake in Belarus potash miner

India is looking to acquire a 20-25% stake in Belarus-based Belaruskali, one of the world's largest producers and suppliers of potash, in a deal that could be worth $6-7 billion, the Mint reported on Wednesday.

The proposal will be discussed at a meeting chaired by Prime Minister Manmohan Singh on Wednesday, the report said citing two officials of the federal ministry for chemicals and fertilisers.

The officials said the Belarus government valued Belaruskali, which jointly owns Belarusian Potash Co with Russia's Uralkali, at $30 billion.

India needs to ensure long-term supplies of potash to meet increasing demand, but could face competition for acquiring the stake from rivals based in Russia and China, it said.

Manoj Kumar Bharti, India's ambassador to Belarus, met Belarusian Prime Minister Mikhail Myasnikovich to discuss the proposal on Aug. 4.

The government was contemplating a strategic stake in a potash mining firm outside India but no concrete proposal has been finalised, a top official from the federal ministry for chemicals and fertilisers said

"If at all, a stake buy happens, it has to happen through a government-controlled company," the official siad.

India is fully dependent on imports for potash and meets its requirement from Belarusian Potash Co, Canada's Canpotex - jointly owned by Potash Corp, Mosaic Co and Agrium Inc, Arab Potash Co, ICL Israel Chemicals and K+S.