In this article, we are going to discuss 15 largest potash producing countries in the world. You can skip our detailed analysis of key market players, global price trends, the effects of the Russia-Ukraine war on the global potash supply chain and the environmental impacts of potash mining and go directly to 5 Largest Potash Producing Countries in the World.
The term “potash” refers to a group of potassium bearing minerals and chemicals. Among its different varieties, the compound potassium chloride (Muriate of Potash) occupies the major share of the global potash market. According to research at the University of California, about 95% of the entire global potash supply is used in agriculture, while the rest is used to manufacture commercial and industrial products, such as detergents etc.
Potash plays an important role in the fertilizer industry because potassium is an essential and irreplaceable nutrient for plant growth. Where potassium is deficient in soil, potash fertilizers can be used to rectify the problem and boost crop yields and quality.
Some of the key players in the global potash market are the Canada-based Nutrien Ltd. (NYSE:NTR) and the Chile-based Sociedad Química y Minera de Chile S.A. (NYSE:SQM). Nutrien Ltd. (NYSE:NTR) has emerged as the global market leader in the industry, with the capacity to produce over 20 million tons of potash. Nutrien Ltd. (NYSE:NTR) has over 2000 retail locations in over 7 countries and a distribution network to efficiently supply potash to approximately 40 countries around the world.
The global potash prices peaked at above $1,000 per ton during the commodity boom in 2007-08. But since then, the average potash prices stood at around $350 per ton and are currently at around $645 per ton, according to a research at the University of Illinois. This current increase in prices could be attributed to the Russia-Ukraine war.
According to the United States Geological Survey, Russia and Belarus have together accounted for a third of the global potash supply over the years. Following the Russian aggression in Ukraine since last year, the EU, the US and other countries have placed economic sanctions over Russia. Fertilizer products, including potash, were exempt from the said sanctions, however, the EU placed import quotas on potash from Russia. Following these sanctions and restrictions, Russia responded by suspending fertilizer exports to countries that it deemed unfriendly. Russia continued its exports to China, India, Brazil and other countries but its potash exports in 2022 were still down 30% from 2021.
Similarly, Belarus produced over 7.6 million metric tons of potash in 2021. This declined significantly in 2022 because the country lost access to key shipping routes in Lithuania after U.S. sanctions on its state-owned company, JSC Belaruskali. The Lithuanian port of Klaipeda handled over 90% of Belarussian potash exports, however, after the said sanctions, the landlocked country has very few avenues to ship one of its key exports and sources of revenue.
As a result of reduction in the global potash supplies, producers in Canada have announced to increase production to fill this gap. Canadian production capacity is expected to increase by 3 million tons per year by 2025. According to Saskatoon StarPhoenix, Pam Schwann, president of the Saskatchewan Mining Association has said:
“With the invasion of Ukraine, we’ve seen a lot more countries and companies try to find secure, reliable and ethical producers of potash and many have turned their attention to Saskatchewan”
This led to a record revenue of $11.9 billion, by the end of August 2022, for Canadian potash producers, eclipsing the previous record of $7.6 billion in 2021.
However, potash mining can also have serious detrimental effects on the environment. It causes a decrease in species richness and alters the salinity gradient of freshwater ecosystems, as well as large-volume water consumption and contamination. The direct disposal of brine in rivers can affect aquatic fauna and cause biological degradation. Therefore, as invaluable as this resource is for the global food supply and economy, ethical and responsible practices should be adopted to mine it.
That said, here is a list of 15 Largest Potash Producing Countries in the World.
15 Largest Potash Producing Countries in the World
Methodology:
There are 15 countries in the world that produce over 99% of the world’s potash and have a virtual monopoly in the industry. With potash being an essential and irreplaceable component of various fertilizers, these countries have enjoyed some hefty profits over the years. Some countries are producing this compound through mining from underground ore deposits, while others are producing it from salt lakes or brine obtained from the sea. To rank these countries for this article, we have referred to the Mineral Commodities Summaries 2023 report by the United States Geological Survey.
15. Iran
Production of Potash in 2022: 37,000 metric tons
The production of potash in Iran has increased significantly from 10,500 metric tons back in 2016, revealing massive growth in the industry. The mining complex of Khur in the central Isfahan province in Iran is the first potash mine in the country and contains the largest reserves of the compound in West Asia.
There is even a “Potash Salt Village'' in the area, which has become a major tourist attraction over the years and even boasts a 25-meter high potash salt waterfall. There are also various lakes in the country with potash-bearing brine, such as the Rezayeh Lake. The salt is obtained from such lakes via the solar evaporation process.
14. United Kingdom
Production of Potash in 2022: 99,200 metric tons
The Boulby-mine, located in north-east England, was one of the world’s largest potash producers for many years and is the only source of potash in the UK. According to the British Geological Survey, production from the mine started commercially in 1976 and output increased steadily until it peaked at 943,000 metric tons in 2003, but since then, it has been in constant decline. The production of potash in the UK stood at 482,800 metric tons in 2016 and so the UK has emerged as a large importer of potash over the years, with 90% of it consumed in the production of fertilizers.
13. Uzbekistan
Production of Potash in 2022: 210,000 metric tons
The total production of potash in Uzbekistan stood at 83,000 metric tons in 2016 and has constantly grown over the years. The Tubegatan potash deposit, located in the south of the country, is a very important source of the compound. However, there have been reports of environmental degradation and pollution in the area, with more than 6 million tons of potash waste reportedly accumulated, since production began in 2010.
12. Brazil
Production of Potash in 2022: 270,000 metric tons
Brazil is the second-largest producer of potash in South America. However, being the breadbasket of the world, the country is also the second-largest consumer, as well as the fastest-growing market of the compound in the world and so it imports 96% of its required amount. The Toronto-based Brazil Potash Corp. is an important player in the industry, which is working on extracting potash in the Amazon. Its Autazes project is a key step towards self-reliance for the country but it has been faced by delays, due to litigation with the indigenous communities.
11. United States of America
Production of Potash in 2022: 440,000 metric tons
According to the United States Geological Survey, the majority of the US production was from southeastern New Mexico, where two companies operated two underground mines and one deep-well solution mine. There were also two companies that operated three facilities in Utah. The country is also the third-largest consumer of potash in the world, with consumption estimated to have increased by 3% since 2021. One of the largest potash companies globally, The Mosaic Company (NYSE:MOS) is based in Florida. With a workforce of around 1300, The Mosaic Company (NYSE:MOS) currently has a market cap of $11.85 billion. The Mosaic Company (NYSE:MOS) also owns the Colonsay mine in neighboring Canada.
10. Spain
Production of Potash in 2022: 450,000 metric tons
Spain is the second-largest producer of potash in the EU, right after Germany. Potash is extracted from underground mines in the form of Sylvanite, a mixture of potash and salt found in different concentrations. ICL Iberia, a subsidiary of the ICL Group Ltd (NYSE:ICL) is a key player in the potash mining industry in Spain.
Currently being the sole producer of potash in the country, the ICL Group Ltd (NYSE:ICL) exports 80% of its production to countries in the EU, Asia and the Americas. Another player entering the Spanish potash market is Highfield Resources, which is working to develop the Muga potash project in the country, thus potentially ending the absolute monopoly enjoyed by the ICL Group Ltd (NYSE:ICL).
9. Laos
Production of Potash in 2022: 600,000 metric tons
According to a report, the existence of potash salts in the country was proven during the potash exploration campaign in the 1970s, by one single drill hole in the Vientiane basin, with the assistance of the USAID. Exploration and development of potash deposits has developed well over the years.
The production of potash in Laos in 2016 was around 198,000 metric tons, revealing massive growth in the industry. A key player in the country’s industry is Asia Potash International Investment Co., Ltd., which has also been working on building a “Smart Potash Mine”, with the help of the Huawei Media Group.
8. Chile
Production of Potash in 2022: 850,000 metric tons
Chile, with its substantial mineral wealth, is the largest producer of potash in South America. One of its companies, based in Santiago, Sociedad Química y Minera de Chile S.A. (NYSE:SQM) is not only the largest producer of potash in the country but is also the biggest supplier of lithium in the world. The Sociedad Química y Minera de Chile S.A. (NYSE:SQM) produces its potash with reserves from Salar de Atacema, in the northern part of Chile and currently has a market cap of over $19.7 billion. Another big company operating in the country is Inspiration Mining.
7. Jordan
Production of Potash in 2022: 1,700,000 metric tons
Jordan produces its potash with brine from the Dead Sea, which has around 2 billion tons of potassium chloride. The potash production in the country in 2016 was around 1.2 million metric tons, revealing a 39% increase over the years. One of the largest producers of potash in Jordan is the Arab Potash Company, with a market cap of around $4 billion. The APC has the capacity to produce a total of 2.5 million tons per year of potash through its three production plants in Jordan. Another key player operating in the country is Jordan Phosphate Mines Company Ltd.
6. Israel
Production of Potash in 2022: 2,500,000 metric tons
Israel, along with Jordan, also recovers its potash from the Dead Sea, one of the saltiest bodies of water on the planet. The production in Israel in 2016 was around 2.1 million metric tons, revealing a growth of 19% in the industry. A key player in the market is ICL Dead Sea, a subsidiary of ICL Group Ltd (NYSE:ICL), which through the Dead Sea Works Project, conducts its operations at the southern basin of the Dead Sea and produces potash, along with bromine. These products are then transported to customers in Israel and around the world.
