Global search for potash gathering steam Global search for potash gathering steam
By
Babs McHugh
Updated
Fri 29 Nov 2013, 1:29pm AEDT
Potash, a key ingredient in fertiliser, is fast becoming one of the most sought after minerals worldwide.
BHP Billiton, which owns the massive Jansen Project in Canada, has recently called potash the fifth pillar of its business, after coal, petroleum, copper and iron ore.
The company has committed to spending $800 million a year on the project which, if it finally goes ahead, will be a multi-billion-dollar one.
Potash demand is expected to grow along with the need to produce more crops and animal feed as the world population increases.
Matthew Trivett, of Patersons Securities, says despite a recent dip in price, companies, especially from China, are on the global hunt for potash.
"We're definitely seeing some movement, especially from the Chinese, not just BHP Billiton.
"A German company, K+S, is another group and it's actually developing a project in China, but only about two million tonnes.
"You've also got the China Development bank backing the funding of an Australian-listed company's, Elemental Minerals, privatisation, and another development in the Congo from Mag Industries.
"The Chinese are throwing some money at this industry. You've also got Yanzhou, which is the majority shareholder of Yancoal in Australia, it's also got its foot on some large tenements in Canada.
"So outside of BHP, you can definitely see the Chinese definitely making some moves to securing future supply.
https://www.abc.net.au/news/2013-11-29/potash-sought-around-the-world-for-fetiliser/5124878