In the late 1800's, when Germany started mining for potassium salts and supply increased, a world fertiliser market was created.
Now the supply of potash is dominated by three countries who typically provide two thirds of the world’s supply of Muriate of Potash (MOP); Canada, Russia and Belarus. There are less than 12 other countries that produce a meaningful supply for global markets (those in excess of 500,000 tonnes per year of MOP production).
China is currently the largest Sulphate of Potash (SOP) producer, largely using the resource intensive Mannheim method. Western Australia is currently developing several SOP operations that will challenge China’s dominance in this premium market in years to come, most notably because of their use of the more environmentally friendly solar evaporation of brine and salt reaction methods.
Although the market is dominated by MOP, increasingly with the focus on organic certification and sustainable environmental impacts, the premium product SOP is gaining market share. World demand for food growth continues, along with population growth, with SOP being the only potash based fertiliser suitable for crops, such as vegetables and fruiting plants.
Globally, the 30-year outlook is that SOP demand will increase at a rate averaging 4-6% growth per year. SOP is a good, substantial, long term investment with prices seeing a steady upward trajectory. SOP is the premier potash investment - all of the world's SOP projects are selling 100% of their output.
In Australia, all potash types are currently imported. Australian farmers need access to economical and environmentally friendly Australian potash to replenish depleted Australian soils and to help them remain competitive in international markets.
Australian Potash Limited:
Suite 31, 22 Railway Road
Subiaco Western Australia 6008
PO Box 180
Subiaco Western Australia 6904
Tel: +61 8 9322 1003
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