Potash deposits are abundant in Canada, accounting for
approximately 40% of the world's entire trade, an impressive number when
considering that the element is produced at a rate of more than 30 million tons
worldwide each year.
While potash is the seventh most abundant element in the
Earth's crust, the demand for this resource is inclining steadily and it is one
of the vital components used to comprise effective fertilizers used in the
agricultural industry. Therefore, major mining companies are currently running
at full or near to full capacity and are undergoing a certain degree of
pressure to satisfy need. The last potash mine to be implemented in Canada was
nearly forty years ago.
The result of this is that potash mining operations and
projects conducted by older companies are becoming increasingly expensive as
equipment and processes are older. The investment world has seen this in share
costs which are currently selling at up to $148 each.
As the population's concern for quality food consumption is
growing and the income levels of the middle classes are increasing, there is
now a larger demand than ever before for quality food items that are higher in
protein and greater in nutritional value. There is also a larger portion of the
population who are able and willing to pay for superior food products.
In turn, the agricultural industry has seen a significant need for fertilizers
and potash is a necessity as it offers improvement in the following ways:
With this, it is possible for potential investors to
ascertain that the demand for potash is only increasing. Yet high share costs
with existing companies leave fewer opportunities open to the investment
Canadian junior mining companies are currently demonstrating
high degrees of potential by securing property that has been proven to contain
potash deposits in warmer countries where mining law is favorable and
governments are open to foreign investment. By outlining intended projects for
potential investors, junior mining companies are garnering interest in their
Canadian potash companies have few peers in North America,
and therefore offer an immediate competitive advantage. Junior Canadian
companies are able to offer the investment public an opportunity to get in on
the ground level of an industry that is currently thriving and predicted to
continue to do so.
Investors should also look for Canadian companies that have
access to higher formation temperatures. Higher formation temperatures improve
the distillation process and will reduce heat input that is required for
selected bines. In turn, production costs will be reduced.
Solution mining is also a viable investment option as it is
scalable, meaning that projects can be scaled to the current financial
climates. In addition, mining in warmer climates allows for solar evaporation
which is cost-effective.
The above are all indications that point to secure
investment opportunities. Canadian potash mining is currently undergoing a
significant and lucrative change in productivity.