Potash is currently at the top of investor news as mining
companies are commencing projects that are demonstrating great potential in
terms of holding components that will reduce operation economics, as well as
property that has been secured that has been demonstrated to contain deposits.
Although certain regions possess potash reserves that
account for approximately 40% of the world trade, younger companies are
stepping to the forefront and taking exploration to foreign countries, where
the mining law is favorable and governments are very open to foreign investors.
Many of these countries have more favorable conditions for potash mining as
heat allows for solar evaporation after solution mining, which can
significantly reduce costs.
On account of world demand, the major mines have seen great
success in terms of investor interest and share prices. Potash shares are
running at up to $148 each.
With worldwide demand for potash increasing steadily, the
price is rising and potash warehouse stocks are lowering. Existing potash
mining companies are currently running at full or near to full capacity in
order to meet inclining demand. Yet due to the older equipment and operation
methods being used within existing companies, production time is both
time-consuming and costly. As such, investors are seeing the price of potash
Fortunately, junior potash mining companies are emerging
that are enabling investors the opportunity to get involved with potash on the
ground level. With junior mining companies, the investment public has access to
feasible shares and companies that are demonstrating excellent potential
through a variety of components that offer a competitive edge over their
Primarily, projects that have been outlined which are being
executed based on the premises of secured property that has proven to have
sufficient potash deposits offer a guarded financial venture. There are
companies emerging that have secured land adjacent to property that is
extremely abundant in potash reserves.
Furthermore, when a potash mining company has access to water
at a low cost, investors can remain confident that production economics will be
reduced significantly as access to water is one of the main components utilized
in the potash mining operation.
Investors can also remain assured that potash mining is a
branch of solution mining. Solution mining is scalable therefore all projects
can be scaled to coincide with existing financial climates.
While the success of a resource investment is dependent
directly upon supply and demand, investors remain confident that potash
companies will be working at full capacity for many years to come. Potash is a
resource that remains in constant demand. Being a vital component in
fertilizers, the agricultural industry depends heavily upon a continuous supply
of potash. The quality of food products is contingent upon efficient supplies of
corn, feed, and wheat. With the emergence of a higher number of people who are
apart of the middle class income bracket, there exists a wider demographic who
are demanding better quality foods and are willing to pay for them.
As such, potash companies are working at full capacity and
junior potash mining companies are planning projects that allow investors to
become involved with a thriving industry.