Chinese investors are keenly interested in acquiring potash production in Saskatchewan and are looking specifically at two Vancouver-based junior companies with potash properties in the Regina area.

Western Potash Corp. and Potash One, both of which have extensive holdings in the Regina area, have been in discussions with several Chinese companies with regard to possible investments or acquisition, according to a Vancouver-based business journalist.

Marc Davis, managing editor of BNW News Wire, an online business news service, says several delegations of Chinese investors have met with Western Potash and Potash One officials in recent weeks.

"Western Potash have been made offers already by the Chinese,'' said Davis, a former Vancouver Stock Exchange floor trader who also worked for Dow Jones and the CBC.

Davis said it's no secret that the Chinese government wants to expand its own potash production and Saskatchewan is the best place to do that.

"There's quite a bit of competition between the Chinese themselves to lock in future potash supplies,'' said Davis in an interview Monday. "There's been at least a couple of Chinese mining companies, as well what's known as state-owned enterprises.''

In fact, the recent impasse between the Chinese and Canpotex, the offshore marketing agency for Saskatchewan's three big potash producers -- PotashCorp of Saskatchewan, Mosaic Company and Agrium -- has accelerated Chinese interest in acquiring Saskatchewan potash production.

"The Chinese are pretty frustrated,'' Davis said. "The Chinese took over a year before they finally signed a long-term contract with Canpotex ... So it's implicit that they're trying to lock in their own Canadian supplies.''