Australia’s first potash miner wants to break Canadian grip on market

Encouraged by test work that revealed extraction potential using its own technology at one of the world’s largest known glauconite deposits, Perth-based Potash West on Wednesday expanded it exploration tenure by almost 40% to 2,905km² in Australia’s wheatbelt.

The company raised $6 million on the Sydney bourse in May this year hoping to become the first Australian firm to break into the lucrative potash market dominated by about 10 mainly Canadian companies. Global potash prices currently average $500 a tonne, up more than 40% from 2008-recession lows.

SMH reports assuming its project is viable, Potash West will in the short term target the Australian market, which consumes about 500,000 tonnes of potash a year, 80% of which is used in WA and Queensland. The most lucrative market is India which has to import some 6 million tonnes a year for its 55 million small farmers.

Potash West MD, Patrick McManus said on Tuesday: “It is encouraging that we have been able to confirm the work carried out by previous researchers, showing that glauconite can be broken down readily, releasing the potassium. Identifying new process options is a significant part of our strategy and will increase the intellectual property of the company.”