RE: Is there too much potash?needtosave, there is just not going to be enough potash to go around. We all know that existing mines can not respond quickly to any higher demand from the growing economies..India and China....
Allana will be one of the first greenfield mines to come on line in the world...and remember we are planning to produce 50% of our KCL as SOP...this is for a unique market where MOP does not work...If we produce 3 million tonnes of potash per year...and half is SOP, then AAA will produce 25% of the worlds production of SOP++ and it fetches a 40% premium to MOP...Finite suppy, growing demand, higher prices for crops and the market is set to reward a junior that can get it done and get to production...thats where AAA comes in and will derisk the financing of the Capex over the next 6 months during the Bankable Feasibility Study...
And if BHP wants to be in "big" in 2 of the world potash basins...then it will have to think long and hard on how it wants to buy out the basin we are in...makes you think.
A picture is worth a 1000 words...this is the Total World Potash available....
This is a very tight market and will take many years to expand production to meet demand.
Governments are not responding to the pending global food crisis and population explosion with any organized plan...
The private sector will try to respond...but we are being told that will be challenging at best to keep up with demand.
I guess the crisis will have to get worse....before governments take steps to increase food production in a meaningful way.
These 4 basins are it folks...
