"Why the EU’s potash sanctions are looming over supermarket prices" and what Sage Potash (SAGE.v) is doing to combat this in North America
Potash is a vital component in fertilizer and, consequently, in ensuring our food supply in the growing agricultural industry due to its ability to boost crop yields and balance crop productivity.
Recently, the potash market got hit with a huge shock following the EU's sanctions on Russia and Belarus, who together produce 40% of the worlds supply, significantly disrupting both production and supply.
This, alongside Russia's war with Ukraine disrupting grain exports, has resulted in sharp food and fertilizer price increases worldwide, straining the global food chain worldwide.
Canada is the worlds single biggest supplier of potash and the US currently relies on Canada for 94% of its potash requirements.
(Source: https://www.politico.eu/article/eu-sanctions-higher-food-prices-potash/)
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 on track 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.
For more information, check out Investor Intel's Deep Dive on SAGE: https://investorintel.com/critical-minerals-rare-earths/sage-potash-seeks-to-address-supply-chain-security-and-sustainability-with-domestic-us-production/
Posted on behalf of Sage Potash Corp.