TSXV:EPO.H - Post by User
Comment by
InvestThison May 04, 2018 1:05am
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Post# 27980867
RE:New Production and Markets
RE:New Production and Marketsoldsalt73 wrote: There is no future in adding to potash capacity without finding new markets. If we simply build a new mine, in the hope of having an existing mine shut down, we will have initiated a price war and there will be losers.
If we can initiate new ultra low cost production, the very news of this will challenge the planned convnetional projects, funded by state funding or by the oligarchs, that are essentially laudering surplus funds.This can be a service to the existing industry.
The big question is how to develop new markets. Africa uses less than 500,000 tonnes of potash a year. Canpotex don't even list Africa (or any countries in Africa) on their web page. The fertilizer deficit is huge, maybe 20 to 40 million tonnes. Infrastruture is being put in place.
Low production cost does provide an advantage.Could this "new low cost industry" couple market development activity to sales, to supply this market without disrupting the existing industry? If so we need to work together to build this industry.
Any ideas/
Nice to see someone that actually knows what they are talking about. Unlike useless MJBrown