Exploration companies snapped up all the state trust lands in Arizona's Holbrook basin earlier this year in response to record prices of potash, but while one company sold their leases for a cool $1 million, there's been little news about what plans any have for further exploration. One factor is the drop in global grain prices and expectation there will be less fertilizer needed and thus less potash to make the fertilizer. [right, SW-NE cross section across Holbrook basin, showing potash layer in red. AZGS]
But Mineweb.com quotes Potash Corp of Saskatchewan, the world's biggest fertilizer company, as saying that global potash supply will be "short to balanced over the next few years, giving it an ideal opportunity for its expansions."
The company's CEO says "even if all announced projects are completed, global potash supply from other producers will not grow as quickly as consumption forecasts."
Whether that will translate into development of the 2.2 billion tons of potash in Arizona is unknown.