Stocks in potash are becoming increasingly valuable due to
the increase in worldwide demand for fertilizer. Potash is a vital component in
this agricultural necessity and, as such, it has become more widely used. The
increasing number of people who have joined the income bracket of the middle
classes in countries such as Brazil and India has created a larger world demand
for high quality food products. This rise has resulted in a larger amount of
the population who are willing to pay more for food that is healthier and of
Growing more grains, feed and corn creates food products
that are better in quality and offer more value in terms of nutrition. In turn,
more fertilizer is being produced to meet consumer needs, increasing the
necessity of potash. The major consumers of potash in the world are China,
Brazil, India and the United States.
There are many potash mining companies, including both those
that are junior and major world players in the industry. The companies and
mines that have been around longer are now running at full capacity in order to
meet demand. In turn, potash warehouse stocks are down and the price is up.
Investing in larger potash companies is a high-cost investment, running up to
$148 a share.
There are currently several junior potash companies that are
commencing projects that have attracted the interest of investors. Those who
are interested in getting involved with potash stock are able to join a company
at ground level and become involved with a significant project.
There are a variety of factors to look for when considering
investing in a potash company, in order to ensure that the investment is wise.
Primarily, companies that have secured property that has been proven to have
deposits of potash in substantial quantities will render successful and
economically beneficial results.
There are a variety of competitive advantages to investing
with certain potash companies over others. Companies that have property
adjacent to areas that are rich in potash are often viable selections. In
addition, those that have drill holes that have confirmed the existence of
potash offer exciting investment opportunities.
Projects that are characterized by a high minimum of
formation temperatures of approximately 65.5 degrees C. will improve the potash
dissolution process and reduce the heat input that is required. In turn,
production costs are reduced significantly. Furthermore, the accessibility of a
higher formation temperature means that more potassium chloride in solution
will be produced.
Solution mining is scalable. Regardless of the existing
financial environment, production can be scaled accordingly.
The demand for potash is increasing steadily and it has been
estimated that certain regions have reserves that are sufficient enough to
supply the entire world with potash at the current levels of demand for several
hundred years. However, newer companies are breaking ground in hotter regions
of the earth, where there is favorable mining law and governments are open to
foreign investors. Investing with a junior company that has access to
deposit-rich property, access to water and can produce at a high minimum
formation temperatures are proving to be wise financial ventures for those
looking to get into potash.