Global Potash Production Decreased by 6.6% in 2012

Potash

Potash is commonly mined using two main techniques, namely, solution and undergoing mining; however open pit or solar evaporation may occasionally be used. There are three common methods for processing potash: flotation, thermal dissolution-crystallisation (hot leaching) and electrostatic separation.

At present, nearly 95% of the world’s potassium output is utilized for the production of fertilizers. Potash fertilizers are mainly used for feeding such crops as fruits and vegetables, coffee, corn, grain, rice and soybeans. Potash also finds application in the production of feed supplements, glass and soap. Moreover, the product can be used as water softener and de-icer.

Potassium occurs in nature in large quantities. In 2012, the global potassium reserves ranged between 9 and 20 billion tonnes K2O.

In 2012, world potash production decreased by nearly 6.6% y-o-y and totaled around 34 million tonnes. Canada is the leading world potash producer, accounting for over 26% of the global production. It is followed by Russia, Belarus and China.

Potash: world production structure, by country, 2012

Potash: world production structure, by country, 2012

The economic extraction of potash is currently limited to only 12 countries; thus, most countries have to rely on imports to meet the demand. The product is imported by over 100 countries worldwide as more than 80% of global potash production is exported. China, India and Brazil are the leading importers of potash.

New potash mines are expected to be opened by 2025 in Brazil, China, Argentina, Australia, Kazakhstan, the United States, Turkmenistan, the United Kingdom, Uzbekistan and some other countries. Eastern Europe, Central Asia and North America are the most promising regional markets for potash. Canada is forecast to maintain its leadership in terms of potash production in the years ahead. In 2015, global potash production is likely to surpass the 37 million tonnes mark.

More information on the potash market can be found in the report Potash Market Review.