An interview with Dundee Capital Markets Vice President and Senior Financial Analyst Richard Kelertas quotes him as saying the most favorable regions for potash companies right now are Saskatchewan, Utah, Arizona, and Ethiopia. As I read the interview, the shallow depth of the Holbrook basin deposit would seem to be one of the more important factors, along with proximity to U.S. markets.
He expects an average price in 2012 $505/t, rising to $520/t average price in 2013. The peak price in 2013 was revised downward from $700-725 to around $625-$650/t.
Concerns were raised about potential flooding of existing deep shaft mines (ie, around 2,200 meters) such as in Saskatchewan and Russia, saying it may only be a matter of time for some of them. Shut downs of existing mines could crimp global supplies, despite slower than expected global recovery from the recession.
Passport Potash A Mine in the making...
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