There is a Chinese proverb that says; “The best time to plant a tree was 20 years ago. The second best time is now”. The same can be said with your mining project. Especially when looking at the current potash market.
As we are all aware, permitting and planning for a mine even in the most friendly of jurisdictions takes many years, as such one must plan ahead for the development of a mine. Looking at the current potash market we are seeing that the balance between production and sales is relatively stable. This is largely as the Canadian producers are acting as the “swing producers” to balance the market. This market discipline is nothing new with Campotex and anticipation would be that this is to continue to be expected. The preservation of revenues and margins by shutting down the higher cost mines will likely prevail.
Couple this with continued water inflow issues at Uralkali’s Solikamsk 2 mine, and the potential reduction of +1 million tonnes of potash from the market and price of potash is likely to continue to rise in the near term. This increase in pricing makes potential potash projects look promising.
If you would like to discuss your potential project, please contact Schlumpberger Inc and we would be happy to assist you with your project.