LOOKING
BACK AT
2020
A year in the
potash industry
By Steve Halabura P.Geo., Halabura Potash Consulting Ltd. “Potash” is a generic term describing
gains. While there were complications
potash is a “forward-facing” com-
various forms of potassium-bearing
caused by infrastructure and logistics
modity, whereby the trend toward
fertilizer products. The most com-
difficulties induced by the COVID-19
increasing awareness as to environ-
mon of these products is “Muriate of
pandemic, global demand remained
mental responsibility and engage-
Potash” or “MOP”, which is potassium
generally strong, although there were
ment with local communities and
chloride (KCl) in a high-grade form.
regional differences in potash sales.
stakeholders bolstered, rather than
MOP provides the potassium macro-
The effect upon potash caused by the
degraded the business.
nutrient in the formulation referred to
COVID-19 pandemic was the same as for other bulk commodities, as lock-
2020 was very much a year like 2019,
downs and reduced staffing created
with prices overall down slightly from
will be referred to in this article.
slowdowns
the start of Q1. The global price opened
distribution. As for positive develop-
with contracts in the USD$220 to
The potash business in 2020 was
ments, there were more recognition
USD$235 per tonne range, with Can-
largely stable, however lacklustre
by analysts and the investment com-
potex China contract prices currently
from the producers’ and investors’
munity that potash is indeed a unique
at USD$230 per tonne. For North
viewpoint of enjoying significant price
business. In the words of BHP Billiton,
American markets, potash opened
as N-P-K, or Nitrogen-PhosphorusPotassium. MOP is the product that
in
Mosaic’s new K3 Esterhazy mine is now in production, and while it will for the near-term replace production decreases from the older K2 and K1 mines, it does have the ability to increase production to meet any supply-demand imbalance, and by 2024 be ready to completely replace the older, high-cost mines. Photo by The Mosaic Company.
20 PotashWorks 2021
transportation
and
