Canada is the world’s main potash producer by far, with annual output topping 14 million metric tons. Russia takes the second spot by way of complete potash manufacturing at 7.6 million metric tons, adopted by Belarus in third place at 7.3 million metric tons.
For traders within the international potash fertilizers market, it’s necessary to grasp the distinction between SOP and MOP. Learn on for an evidence of their frequent makes use of, in addition to a have a look at strategies of manufacturing them and which mining firms are doing so at the moment.
Potash fertilizers: Muriate of potash
MOP, or potassium chloride, is essentially the most generally employed potash fertilizer and can be utilized to farm quite a lot of meals, significantly chloride-loving greens resembling sugar beets, corn, celery and Swiss chard. It may be useful for soil that’s low in chloride, constructing the crops’ illness resistance.
There are some drawbacks to this sort of potash fertilizer. For instance, if excessive ranges of chloride are current within the soil or if irrigation water is getting used to develop crops, including MOP can create a poisonous imbalance in plant vitamins. Meaning ranges of the fertilizer must be rigorously managed, and MOP should solely be used for choose crops.
Nonetheless, MOP stays one of the crucial business fertilizers within the potash household, with over 55 million tonnes being bought and used yearly. Though the recognition of MOP in recent times has led potash manufacturing to outpace demand, leading to lower-than-desired costs for the fertilizer product, the outlook for the potash fertilizer market remains to be constructive.
Nutrien (TSX:NTR,NYSE:NTR), an organization shaped by the merger of Potash Company of Saskatchewan and Agrium, is a serious producer of MOP. Nevertheless, attributable to anticipated future demand for fertilizers that promote crop manufacturing and plant development, many smaller firms have started exploring and growing their very own potash mines and manufacturing tasks.
For instance, Highfield Assets (ASX:HFR) is a MOP explorer that’s working to convey its Spain-based Muga potash challenge into manufacturing. Muga is anticipated to supply greater than 1 million tonnes of MOP per yr with earnings earlier than curiosity, tax, depreciation and amortization coming to round 310 million euros yearly as soon as it reaches full manufacturing. The corporate is within the last stage of mine approval.
Saskatchewan-based Western Potash, a subsidiary of Western Assets (TSX:WRX), started sizzling mining in mid-2020 as a part of Section 1 mine development at its Milestone MOP challenge. Development completion has since been delayed as the corporate seeks extra financing to complete the mine.
Gensource Potash (TSXV:GSP), which can be primarily based in Saskatchewan and centered on MOP, introduced in early 2020 that agriculture chemical firm HELM can be the offtaker for the corporate’s Tugaske challenge within the province. Firms resembling Verde AgriTech (TSX:NPK,OTCQB:AMHPF) and Karnalyte Assets (TSX:KRN) are all additionally concerned in exploration for MOP.
Potash fertilizers: Sulfate of potash
SOP is taken into account a premium-quality potash. It comprises two key vitamins for rising crops: potassium and sulfur. Utilizing SOP each improves high quality and crop yields and makes crops extra resilient to drought, frost, bugs and even illness. SOP has been identified to enhance the look and style of meals and may enhance a plant’s capability to soak up important vitamins like phosphorus and iron.
Most frequently SOP is used on high-value crops like fruits, greens, nuts, tea, espresso and tobacco. It really works higher on crops which are delicate to chloride, which might be poisonous to some fruit and vegetable crops.
SOP isn’t a naturally occurring mineral, and often should be produced by chemical strategies. Due to the resource-intensive processes used to create it, SOP is priced increased than MOP.
The commonest technique used to supply the fertilizer SOP is known as the Mannheim course of. It includes pouring potassium and different uncooked minerals right into a muffle furnace that’s heated above 600 levels Celsius, making a response between potassium chloride and sulfuric acid. It accounts for roughly 50 to 60 % of world SOP provide.
The following most typical approach of constructing SOP, accounting for about 25 to 30 % of provide, is by reacting potassium chloride with varied sulfate salts to kind what is known as a double salt.
“The commonest uncooked materials employed for this objective is sodium sulfate. Sodium sulfate, both within the type of mirabilite (also referred to as Glauber’s Salt) or sulfate brine, is handled with brine saturated with MOP to supply glaserite,” explains Kalium Lakes (ASX:KLL) on its web site. “The glaserite is separated and handled with recent MOP brine, decomposing into potassium sulfate and sodium chloride.”
There are additionally operations that produce such a potash fertilizer by utilizing salt mixtures from pure brines. This requires brine with excessive sulfate ranges which are usually present in salt lakes. Firms in a position to make use of naturally occurring brines embrace Compass Minerals Worldwide (NYSE:CMP), which operates out of Overland Park in Kansas, and Chile’s SQM (NYSE:SQM), which has operations within the Salar de Atacama.
There are additionally smaller potash fertilizer firms that finally plan to supply SOP, together with Agrimin (ASX:AMN), Danakali (ASX:DNK,OTC Pink:SBMSF) and Reward Minerals (ASX:RWD). Reward Minerals’ Lake Disappointment challenge is the most important brine-hosted SOP deposit on this planet. Salt Lake Potash in Western Australia (ASX:SO4,OTC Pink:WHELF) is ready to start SOP manufacturing in 2021.
Understanding the distinction between muriate of potash and sulfate of potash is likely one of the key issues potential traders ought to know earlier than contemplating investing within the sector. Analyzing prime performers, working areas and the professionals and cons of investing within the potash business are strategies to assist proactive traders select properly and mitigate danger.
All firms listed on this article had market caps of over $5 million as of June 16, 2021. In the event you assume we missed an organization that ought to be included, please tell us within the feedback. And don’t neglect to comply with us @INN_Resource for real-time updates!
That is an up to date model of an article initially printed by the Investing Information Community in 2015.
Securities Disclosure: I, Melissa Pistilli, maintain no direct funding curiosity in any firm talked about on this article.
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