10/27/2011 03:17 EDT | Updated 12/27/2011 05:12 EST

PotashCorp profits prompt political spin in Saskatchewan election

SASKATOON - Record profits in the third quarter from Potash Corp. of Saskatchewan (TSX:POT) have started an intense round of political spin in the Saskatchewan election.

The world's largest fertilizer producer, which is based in Saskatoon, says its net income jumped to US$826 million.

The Saskatchewan Party says PotashCorp reinvested $590 million in capital expansions and says that shows the province's potash royalty structure is working.

The royalty structure is the way the province collects money from companies who develop resources and the Saskatchewan Party says the current system encourages new investment.

But New Democrats argue the province should get more royalties from a company that is on track to collect a gross margin of $3 billion this year.

The NDP's election platform hinges on collecting more potash revenue to cover new spending promises.