Resumen de SUPPLY SITUATION REPORT: Potash: things can only get better
The vast majority of potash is found in Canada and Russia, which hold potash reserves of 4.4bn and 3.3bn tonnes respectively, of the world's 9.5bn tonnes total, according to the US Geological Survey (USGS). Figures from Russian potash producer, Uralkali, indicate that the oldest reserves in Russia were formed between 275m and 290m years ago, while Canadian deposits formed around 370m years ago under the earth's surface. Deposits in the UK, Germany and Brazil formed underground between 250m and 120m years ago.
In its 2013 full year financial results, released in February 2014, PotashCorp. said that "challenging fertiliser market conditions impacted our performance". In November 2013, Mosaic's CEO, Jim Prokopanko referred to the company's weak results caused by "challenges in the environment in which we operate", while Uralkali's head of sales and marketing, Oleg Petrov, described potash demand as being in "a prolonged, steady decline" following the demand highs of 2011. Whichever way one looks at it, 2013 was a difficult year for the potash industry as demand dropped, buyers held off from purchases and investors lost confidence.
Several potash juniors though, such as ASX-listed Elemental Minerals developing the Sintoukola potash project in ROC, West Africa, have chosen to invest in the region. However, where Elemental plans to target South America with its potash, saying that the African market "isn't there yet", other companies like Allana Potash anticipate that Africa will become a major power house with investment from the Middle East, China and Russia.
