Potash
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Since 2021 the global muriate of potash (MOP) fertilizer market has endured a wave of change not seen since the collapse of the Russia/Belarus trading cartel in 2013. Sanctions imposed by Western nations on Belarus’ vast potash export industry and companies supporting Russia’s MOP mining firms has led to an extended period of unrest, all-time-high prices, and a dramatic shift in supply/demand dynamics.
ICIS’ global MOP report offers valuable insights into the “new normal” of global potash trading, as nations move to secure tonnage from new sources, producers attempt new trade routes, and upstart companies such as Anglo American and Brazil Potash angle in on a share of the 98m tonne/year trade.
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Potash news
MOVES: US Intrepid Potash announces Jornayvaz steps down as CEO
HOUSTON (ICIS)–US fertilizer producer Intrepid Potash announced that Bob Jornayvaz has stepped down as Chief Executive Officer and as a director of the board following his extended medical leave of absence. The Denver-based producer had previously announced Jornayvaz was injured in an accident while playing in the US Open Polo Championship in April and was on extended medical leave of absence. “We are thankful to Bob for his immeasurable contributions to the company over the last two decades,” said Barth Whitham, Chair of the Board. “Bob led numerous initiatives that strengthened our customer relationships, modernized our operations, and capitalized on our unique position as the only domestic producer of potash. He took great pride in the company and its contributions to the domestic and global agriculture industry. Bob and his family remain in our thoughts, and we continue to wish him well in his recovery.” Intrepid said their Chief Financial Officer Matt Preston will continue to serve as acting principal executive officer as the Board of Directors’ search to identify and select a new CEO. “The board’s search for a CEO is well underway. In the interim, we are pleased to continue to have Matt and the rest of the management team lead the execution of Intrepid’s strategic plan,” Whitham said. Intrepid is the only US producer of muriate of potash and also delivers volumes of magnesium, sulfur, salt and water products for use in not only agriculture and for animal feed, but also within the oil and gas industry.
04-Oct-2024
American Potash receives federal approval for Utah potash and lithium project plans
HOUSTON (ICIS)–Fertilizer developer American Potash announced the US Bureau of Land Management (BLM) has approved their plan of operations at the Green River project in Utah, including issuing 11 prospecting permits and authorizing four exploratory drill holes. The company now has federal potash exploration permits and has a total of 7 exploratory drill holes authorized and is positioned for confirmation drilling, with expectations that will validate a high-grade potash potential estimated to be between 600 million to 1 billion tonnes of sylvinite. Another outcome is American Potash intends to establish an initial resource for not only potash but also lithium and potential by-products. The project is located 20 miles northwest of Moab, Utah, within the state’s Paradox Basin, which is one of only eight designated potash Super Basins globally with a long history of potash production. The company said recent development work has also validated the location’s potential as one of the largest domestic sources of lithium in the US. “This is a huge step for the company and the culmination of a process lasting several years. It positions the company to be able to drive forward with its business plan to confirm and validate historic data and targets, and to leverage the benefit of nearby production and neighboring development work, through the drill-bit,” said Simon Clarke, American Potash president and CEO. “We now have complete coverage for potash and lithium exploration across our acreage at a time when global events are driving home the need for domestic sources of potash and lithium to secure food and energy independence. We are now positioned to fully validate the strategic potential of our Green River project.”
02-Oct-2024
Australia BCI Minerals has commenced operations at Mardie salt, potash project
HOUSTON (ICIS)–Australian BCI Minerals announced it has commenced operations at its Mardie salt and potash project after receiving all necessary Western Australian and Commonwealth government environmental approvals. It has begun filling evaporation ponds 1, 2, and 3 with BCI Minerals set to update and resubmit its groundwater monitoring and management plan (GMMP) for further approval before filling evaporations ponds 4 through 9. Construction of the salt-first component of the project is over halfway completed with it expected the company will achieve first salt on ship in Q2 2027. Located 80km south of Karratha, in the Pilbara region, Mardie is anticipated to produce 5.35 million tonnes/year of high-quality industrial salt for export and 140,000 tonnes/year of sulphate of potash (SOP). It has an operating life expected to exceed 60 years. “Australia hasn’t developed a salt project of this significance in 25 years, and the Mardie Project will be Australia’s largest solar salt project and the third largest globally,” said David Boshoff, BCI Minerals managing director. “With the projected growth in demand for high grade industrial salt in our target Asian markets, BCI Minerals is strongly positioned to supply global markets with Mardie salt for generations.”
26-Sep-2024
Karnalyte Resources to evaluate increasing magnesium chloride production at Canada project
HOUSTON (ICIS)–Canadian fertilizer developer Karnalyte Resources announced it will begin a review of its development strategy to evaluate the economic potential of increasing magnesium chloride production at their Wynyard project in Saskatchewan. This effort will be undertaken by developing the magnesium assets at the same time as the development of the potash project. The company said the carnallite, also known as hydrated potassium magnesium chloride, is abundant within their mineral deposit so they need to determine the economic balance of developing carnallite for the co-production of magnesium chloride and potassium chloride. The aim is to significantly increase magnesium chloride production through the application of advanced solution mining technologies. The Government of Canada lists magnesium as one of the nation’s 34 critical minerals and it also appears on the lists in other countries including the US, the EU and Australia. Magnesium is a key mineral in the clean technologies and advanced manufacturing value chain while magnesium chloride serves as a key raw material in the production of various chemicals used in high-tech applications such as semiconductor manufacturing and in industries including agriculture and pharmaceuticals. “In light of the increasing importance of magnesium as one of the building blocks for the green and digital economy, we are reevaluating our strategy and we believe we should review the inclusion of concurrent and optimized magnesium and potash deposit development in our plans for the benefit of all stakeholders,” said Danielle Favreau, Karnalyte Resources CEO. The company said it plans to make progress on its technical report through the remainder of the year, which is a key precursor to any mine construction. It expects to complete the study on the review of its development strategy by the first quarter of 2025. Wynyard is one of two projects Karnalyte Resources is advancing with planned phase 1 production calculated at 625,000 tonnes/year of high-grade granular potash with two subsequent phases of 750,000 tonnes/year from each phase. The company noted that all environmental permits remain valid with preliminary detailed engineering complete and that the existing offtake agreement with Gujarat State Fertilizers & Chemicals Limited remains in effect.
25-Sep-2024
Highfield Resources to receive Muga project funds and transform into global potash company
HOUSTON (ICIS)–Highfield Resources announced it has entered into binding agreements with several parties which would provide the remaining funding needed for the Muga potash project in Spain and transform the firm into a globally diversified potash company. The Spanish fertilizer firm said it has made a pact with Yankuang Energy Group and several strategic investors including Beijing Energy and Singapore Taizhong Global Development, with the transaction raising $220 million in equity capital and providing for the acquisition of the Southey potash project in Saskatchewan, Canada. The company said this provides an opportunity to unlock significant value with the support from a strong shareholder base and the establishment of a partnership with Yankuang Energy, which it said is committed to supporting their growth and development. Under the terms Highfield Resources will issue new shares to Yankuang Energy, Beijing Energy and Taizhong for a total of $170 million. In addition, the company has entered a non-binding letter of intent with another strategic investor in relation to the subscription for $20 million of new shares and is negotiating with other strategic investors for a further $50 million of new shares. Highfield and Yankuang have also entered an agreement for the company to directly acquire all the issued capital of Yancoal Canada, which owns the Southey asset located approximately 60 km north of Regina. It is being designed as a solution mining operation with environmental approval in place and a feasibility study completed. Highfield previously said there is a high confidence reserve estimate at the project with significant resource potential. Forecasted to have a mine life of more than 65 years, the planned annual production is estimated at 2.8m tonnes/year of muriate of potash (MOP). Completion of this transaction is subject to the satisfaction of certain conditions including receipt of required regulatory approvals and Highfield Resources shareholder approval, but the company anticipates it will be completed by early 2025. “This is an outstanding outcome which is expected to result in the commencement of Muga construction and puts Highfield on a very strong platform of growth for the future,” said Ignacio Salazar, Highfield Resources CEO and managing director. “On completion of this deal, we believe we will have the assets, the team and the capital to unlock and create significant value for Highfield.”
24-Sep-2024
Australian Potash Limited acquires land agreement for exploration at Nexus project
HOUSTON (ICIS)–Australian Potash Limited (APC) announced it has reached a land access agreement for exploration with Tjamu Tjamu for the Nexus project located in West Arunta. Tjamu Tjamu has agreed, subject to APC complying with the terms, to allow access to their native lands and for the conducting of exploration activities. The Nexus project is comprised of three exploration licenses and is described by the company as an early-stage exploration opportunity surrounded by globally significant and emerging rare earth and critical mineral element deposits. APC said the agreement recognizes the existence of native title rights and interests in the whole of the determination area, which covers large areas of the West Arunta region of Western Australia including the Nexus site. Officials said the West Arunta area has drawn increased interest in undertaking high value exploration over the past couple of years, and it expressed gratitude to the traditional owners for generously giving their time to review the exploration proposal. APC said the next step involves proposing work programs for heritage clearance assessment. “We have been working with our geophysics consultants to plan air-borne magnetic and ground-based gravity surveys, and with our geological consultants to plan our initial on-ground, non-intrusive mapping and rock chipping program,” said Matt Shackleton Australian Potash Limited managing director and CEO. “We look forward to updating our shareholders as we progress through the heritage clearance assessment and move into unlocking the potential of our tenements in the highly sought after West Arunta region.”
18-Sep-2024
Australia BCI Minerals granted environmental approval for Mardie salt and potash project
HOUSTON (ICIS)–Australian BCI Minerals announced the government has granted environmental approval for the Mardie salt and potash project in Western Australia. With this approval secured, BCI Minerals said it will commence operations by filling three evaporation ponds starting 10 September. Once filled, BCI Minerals will update its groundwater monitoring and management plan using data from extensive monitoring bores and additional studies. It will then resubmit the plan to the local and federal environmental regulators for approval prior to filling the remaining evaporation ponds. The company said construction at Mardie of the salt-first component is progressing at 48% completed, with further section work set to commence on 10 September. BCI added it remains on track to achieve first salt on ship in Q2 2027. Located 80km south of Karratha, in the Pilbara region, Mardie is anticipated to produce 5.35 million tonnes/year of high-quality industrial salt for export and 140,000 tonnes/year of sulphate of potash (SOP). It has an operating life expected to exceed 60 years with the export jetty finished and the crystallizer construction now at more than 19% completed. “This is an important and pivotal moment for BCI Minerals as we move into the next phase of becoming Australia’s newest, high-quality industrial salt producer. Australia hasn’t developed a salt project of this significance in 25 years, and the Mardie project will be Australia’s largest solar salt project and the third largest globally,” said David Boshoff, BCI Minerals managing director. “With the projected growth in demand for high grade industrial salt in our target Asian markets, BCI Minerals is strongly positioned to supply global markets with Mardie salt for generations.”
10-Sep-2024
Sage Potash to receive processing equipment under agreement with International Process Plants
HOUSTON (ICIS)–Canadian potash developer Sage Potash Corporation announced it has entered into an agreement with a subsidiary of International Process Plants (IPP) for the purchase of processing equipment for Canadian dollars (C$) 12.6 million ($9.29 million). The company, which is advancing the Sage Plain Potash project located in Utah’s Paradox Basin, said this equipment is capable of processing up to 300,000 tonnes per year of potash. The majority of the equipment, which has not been assembled or used and is in storage in Europe, was fabricated in 2012 at a then cost of approximately €36 million. Sage Potash said the rest of the equipment will come from IPP’s inventory of second-hand machinery. Under the terms the company will satisfy the purchase price by paying C$6.3 million in cash and issuing 12,600,000 common shares to IPP at a price of C$0.20 per share. It will also issue IPP a secured convertible debenture with a principal of C$3.78 million, with the purchase and transactions subject to acceptance by the TSX Venture Exchange. Sage Potash said it is getting an exceptional opportunity considering stainless steel and titanium costs have more than doubled since 2012. In addition to the cost benefits the company estimates it is going to save between four to five years’ worth of fabrication time. “By buying this existing equipment now, Sage is mitigating project risk and cost, as well as providing added clarity to the project’s timeline, which is what project funders require. We believe this ultimately enhances shareholder value as we seek to reduce the United States’ nearly 100% reliance on imports for potash supply,” said Peter Hogendoorn, Sage Potash CEO. $1 = C$1.36
09-Sep-2024
BHP said global potash segment heading towards renewed balance
HOUSTON (ICIS)–Mining major BHP said after a rough stretch for the global potash segment, it appears it is heading now towards finding renewed balance with improvements in both demand and supply. The company said it has also continued to advance its construction efforts at the Jansen potash project in Saskatchewan, Canada, with stage one currently ahead of schedule. In its economic and commodity outlook, BHP said potash prices have been on a downward trend over the last 18 months as the industry has been resetting after dealing with stark price movement and severe supply disruptions of recent years. The producer said one indicator that the market was returning to normal pace was that the magnitude of price movements in the first half of 2024 was less pronounced compared to a year ago. Looking at regional demand performance, it said a broad recovery has continued from the lows of 2022 with total muriate of potash (MOP) deliveries expected to reach, or exceed, the pre-Ukraine conflict levels during this year. Supply also increased further with export volumes from Russia and Belarus edging closer to their 2021 peak with Laos adding 2-3 million tonnes of capacity over the last few years. BHP said Canadian volumes this year point to an improved production level. “Balanced though does not mean that the market is at rest. The industry remains in the midst of a significant disequilibrium, slowly adjusting from the major shocks of recent years,” said BHP. “The compelling demand picture, rising geopolitical uncertainty and the maturity of the existing asset base collectively provide an attractive, accelerated entry opportunity in a lower–risk supply jurisdiction such as Saskatchewan, Canada.” It was also revealed that construction at the Saskatchewan potash project is ahead of the original schedule with Jansen stage 1 now 52% completed. The first production is targeted for late 2026 with this phasing having an annual output projected around 4.15 million tonnes. Jansen stage 2 is 2% complete with first production from this segment anticipated in 2029. Back in July the company had said Jansen had reached a pivotal milestone with construction having surpassed the 50% completion mark for stage 1 and stage 2 underway.
27-Aug-2024
Slower period for US fertilizers has industry not overly concern that railroad dispute continues
HOUSTON (ICIS)–Although the Canadian railroad labor strife is poised to carry on further, US fertilizer participants are not growing overly concern as this action comes at a slower time of the year for domestic applications and fresh buying. With it being late August most of the attention of domestic growers are either on advancing harvesting campaigns or commencing those efforts soon, with some locations still tending to mature crops. There were also strong summer refilling efforts, which together is overall keeping the pull for nutrients light for most products although volume of nitrogen, phosphate and potash have continued to move over August on barges and terminals. As a source said they had zero concerns so far and not hearing that the situation is concerning customers either, “I assume if it persists there will be. It’s just happening at a time of year that it isn’t impactful enough to our industry.” The railroad strike appeared to have been resolved on 22 August when the government directed the matter to the Canada Industrial Relations Board (CIRB) for binding arbitration, with Canadian National (CN) and Canadian Pacific Kansas City (CPKC) having said they were preparing to begin running. Then on Friday labor union Teamsters Canada Rail Conference (TCRC) issued a strike notice for 26 August, against railroad Canadian National (CN) with approximately 6,500 unionized employees set to withdraw their service starting Monday. As there was prior to the start of this strike activity, there is also optimism from some that this will not be a protracted dispute. The US is about to enter a period of what has been anticipated to be good post-harvest demand, with a source saying a work stoppage “could be an issue then but generally these things resolve quickly.” Earlier this week industry group Fertilizer Canada said disruptions to rail services across the country will cost the fertilizer industry millions per day in lost sales revenue, with an average of 69,000 tonnes of fertilizer product transported per day. 75% of all fertilizer produced and used in Canada is moved by rail, with minimal transportation alternatives, with 90% of those volumes which are destined for the US market delivered by rail.
23-Aug-2024
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