"Why the world needs more potash" Potash is a vital component in fertilizer and in ensuring our food supply in the growing agricultural industry due to its ability to boost crop yields and balance crop productivity.
However, the potash market is largely exposed to disruptions to production and supply, including Russia's invasion of Ukraine as Russia and Belarus produce 40% of the world's total potash supply.
Both Russia and Belarus have seen a significant decline in production levels, plus, US sanctions have limited the amount of potash the US can import, forcing the US to rely on Canada for 94% of its potash requirements.
Similarly, Russia's war with Ukraine disrupted grain exports resulting in a sharp food and fertilizer price increase worldwide.
With this in mind, it's critical for the US to develop its own domestic supply of potash in order to ensure food security and Sage Potash (SAGE.v) is one company working to take advantage of this opportunity.
SAGE is focused on ensuring accessible, efficient and domestic US potash production to eliminate costly shipping fees, import charges and food security risks that come with outsourcing potash.
Consisting of over 88,000 acres of mineral leases and permit applications located in Utah's Paradox Basin (known to host extensive underdeveloped world-class potash resources), SAGE's Sage Plains Project represents the largest potash deposit in the US that is close to pilot production in 1-2 years.
Initial production is expected to be 50,000 tonnes per year followed by a scaling up to 150,000 tonnes per year for 20 years.
Notably, SAGE's use of solution mining, which involves the "circulation of a salt-saturated water solution through an injection and recovery well to access potash-rich reserves", requires lower upfront costs while allowing for extraction from far greater depths.
In delivering a secure line of supply with its large-scale, high-grade potash resource, SAGE is strongly positioned to satisfy a significant portion of US potash demands by establishing a local and reliable supply chain, protecting North America from unpredictable external factors.
Posted on behalf of Sage Potash Corp.