SUPPLY SECURITY
The potash industry has had a healthy year, heading back to pre-crisis levels. According to the International Fertilizer Industry Association (IFA), world potash production in 2011 is expected to have increased by 5-7% over 2010, “on the back of resilient demand consolidating the strong recovery seen in 2010”.
During the same time, global potash capacity rose 6% to 44.6m tonnes K2O and is expected to further expand in 2012 by 5% to 46.8m tonnes K2O. It could even reach 54.7m in 2014, according to the US Geological Survey (USGS), but this figure is likely to increase as new projects are expected to come on stream meanwhile.
About 85% of potash production is dedicated to the fertiliser industry, the remainder used in the chemical industry. About 60% of potash is produced in the form of muriate of potash (MOP) but it can also be...