Potash mining is a complex process and at the moment the
majority of it is occurring in aged mines that are working at full or near to
full capacity in order to meet the increasing world demand. There are abundant
potash reserves in Canada, yet the last time a potash mine was put into
production in the region was nearly forty years ago. Potash mining is costly,
and production in mines that are aging is becoming even more expensive.
Pressure to supply is increasing while there exists a need
for new streams of potash. While several aged potash mines are sinking new
shafts in order to get access to the potash deposits, the reality is that these
mines are incapable of producing sufficient quantities and production in aged
mines is considerably more expensive than production in mines that have access
to newer equipment and innovative processes.
The demand for potash is steadily increasing due to economic
growth in places such as Latin America and Asia. More households are
financially able to purchase better quality food products, including those that
are higher in nutrient value and protein. More meat and cheese products are
being consumed on a daily basis and in order to meet this demand, larger
quantities of grain and corn need to be produced.
Further to this, the quality of food products are a rising
concern amongst the masses and fertilizers containing potash help to improve
the taste, texture and color of produce. More people are willing and able to
pay for food that is beyond merely passable in quality.
The above factors are driving the prices of potash up and
the investment public is seemingly closed off to the industry as currently
shares in major corporations are being sold for $60 to $148 each.
Many junior potash companies are emerging with objectives to
develop low-cost world-class potash resources with solution mining projects in
areas of around the world. Such companies are offering the investment public
opportunities to become involved in a thriving industry from the ground level. Some
are choosing to mine in foreign countries that are only just emerging in the
mining industry. In these places, most of the governments are very supportive
of foreign investors and are implementing very favorable mining laws. More and
more companies are selecting regions of the earth that are known to be
incredibly hot as this assists in solar evaporation after solution mining,
resulting in significant cost savings.
Various mines are sitting on vast reserves of potash and
investors can remain confident that they are entering an industry that offers
scalable projects. Each project can be scaled accordingly to the existent
financial climate of the time. It is possible to commence mining at 100,000
Potash mining is generating much interest from the
investment world and currently offering opportunities to get involved with
junior mining companies that are showing excellent potential and that are
starting new and exciting projects from around the world.