2019 A YEAR IN
The potash business showed in 2019 that despite unique fundamentals, progress and growth in the sector is very much tied to global market demand, commodity price, availability of capital, and increasing awareness as to environmental responsibility and engagement with local communities and stakeholders.
REVIEW
image used under license from nutrien ltd.
A year in the
potash industry “Potash” is a generic term describing various forms of potassium-bearing fertilizer products. The most common of these products is “Muriate of Potash” or “MOP” which is potassium chloride (KCl) in a high-grade form. MOP provides the potassium macronutrient in the formulation referred to as N-P-K, or Nitrogen-Phosphorus-Potassium. MOP is the product that will be referred to in this article. The potash business showed in 2019 that despite unique fundamentals, progress and growth in the sector is very much tied to global market demand, commodity price, availability of capital, and increasing awareness as to environmental responsibility and engagement with local communities and stakeholders. This is no different from other commodity mining and processing industries. After a strong start in Q1, the potash environment proved to be challenging for the re-
By Steve Halabura P.Geo., Halabura Potash Consulting Ltd.
mainder of 2019 as slides in price reflected several fundamental factors. First, demand for potash weakened in Q2 and Q3 due to wet weather in the American Midwest that limited the ability of farmers to apply fertilizer. Demand weakness was exacerbated by China’s announcement in September that it was suspending potash imports. Decreased demand led to an oversupply situation among producers which was reflected by Mosaic shutting down “for an indefinite period” it’s Colonsay, Sask. mine and Nutrien suspending for an eight-week period production at its Allan, Lanigan and Vanscoy mines. Even the recent start-up K+S Bethune mine was forced to curtail production by some 300,000 tpy. In May, BHP Billiton Canada Inc. (BHP) announced that its Jansen Saskatchewan mine and production site “remains an attractive option, however, five years and an additional USD $5.3 to $5.7 billion in addition to its current investment of $2.7 billion is required to complete Phase 1 production. Overall, the Jansen Project is forecast to produce some 16 million tpy at full expansion.”
According to BHP Billiton Canada Inc., the Jansen Project is forecast to produce some 16 million tpy at full expansion. SOURCE: BHP.
22 PotashWorks 2020
