The USGS has released the 2014 minerals commodity study for potash, which describes the global disruption of the market and price last year due to the breakup of the Russia-Belarus marketing company. We're following developments because the Holbrook basin [right, thickness map of potash. source AZGS] holds a significant potash resource at shallow depths and located on a major rail line and interstate. The US imports about 85% of the potash used in the country, mostly for fertilizer. The one mine in Michigan shut down, while a new mine opened in New Mexico.
The USGS reported:
A Canadian company continued development of a new underground potash mine in southeastern New Mexico. Initial production was expected to begin in 2016, with annual production of 568,000 tons of SOP and 275,000 tons of SOPM.The Holbrook basin proposed developments seem to be on hold while the market sorts itself out.
In 2013, progress continued in the development of new mines and expansion of existing facilities in more than 15 countries worldwide. Projects in Canada, Laos, and Russia were expected to be completed by 2017. Other important projects in Belarus, Brazil, Congo (Brazzaville), Eritrea, Ethiopia, Russia, Turkmenistan, United Kingdom, and Uzbekistan were not expected to be operational until after 2018.
World consumption of potash, for all applications, was expected to increase by about 3% per year over the next several years.
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