NIA has learned that earlier this month, Ms. Luo Yan the Chairman & President of China CAMCE Engineering Co traveled all the way to Saskatchewan to meet with Western Potash (TSX: WPX) and discuss the potential development of their Milestone Potash Project. If you want to see how influential Ms. Luo Yan is in the global economy, take a look at the picture below of her meeting with Philippines President Duterte this past October – who expressed full recognition of CAMCE’s performance in the Philippines where they have constructed several major infrastructure projects.
China CAMCE Engineering is publicly traded in China on the Shenzhen Exchange with a market cap of USD$3.05 billion! Apparently, China CAMCE Engineering after meeting with WPX has already begun aggressively accumulating a very large position in WPX! So far, they appear to have accumulated a 4.7% stake in WPX!
Here is a picture of China CAMCE Engineering’s recent visit to WPX, showing Ms. Luo Yan in the center standing with the rest of her management team and the leadership of WPX:
WPX just announced major news late last night that they held a technical review meeting last week in Beijing that China CAMCE Engineering attended along with representatives from several other multi-billion dollar Chinese companies that NIA believes could be getting ready to also accumulate major stakes in WPX! At the meeting, WPX discussed their innovative “horizontal drilling + selective solution mining + crystal pond” technique that will allow them to bring a pilot version of their Milestone Potash Project into production in the near-term with very low CAPEX.
Normally, it takes $2-$3 billion in capital costs to bring a major Potash project into production, but WPX by using the latest breakthrough technologies will be able to bring the Milestone Potash Project into production at a total capital cost of only $80.6 million – with an initial annual production capacity of 146,000 tonnes of Potash!
A picture of WPX’s technical review meeting last week in Beijing:
Yesterday, the three largest Potash producers in Saskatchewan: Potash Corp (POT), Agrium (AGU), and Mosaic (MOS) all gained 5%-6% to new 52-week highs! Unfortunately for China the world’s largest consumer of Potash, these three major Potash producers together with Uralkali in Russia – form a cartel that has complete control of the global Potash market!
This is a major threat to China’s food production/supply, which is why several multi-billion dollar Chinese companies with the backing of the $2 trillion China Development Bank are beginning to bet big on WPX and are focusing on bringing the Milestone Potash Project into production in the near-term! WPX is NIA’s #1 stock suggestion for 2017 and we believe it could easily finish 2017 up 1,000% or more from NIA’s December 12th suggestion price of $0.135!