Mining

Gold– Past and future of Investing in gold for profit

August 15, 2012 by Sheldon Leave a Comment

Gold as an investment

Gold is the most popular form of investment of all precious metals. It is the preferred investment medium used as a hedge against political, economic or man-made currency crises which include declines in investment markets, inflation, escalating national debt, currency failure, social unrest and war. Like other markets, the gold market is subject to speculation especially because of futures derivatives and contracts.

Various historical factors and current events suggest that gold is more akin to a currency rather than a commodity and analysts says the bullion gold investment might be profitable in the short term due to the global economic outlook

Gold through the ages

Until recently, gold has traditionally been used as money, and has also been the relative standard for currency comparisons relative to countries or economic regions. Gold standards were implemented by many European countries in the latter half of the 19^th century. During the financial crises in the wake of World War I these were temporarily held in abeyance. The Bretton Woods system post World War II pegged gold to the United States $ at the rate of US$35 per troy ounce. This practice continued till 1971 when the United State suspended unilaterally direct convertibility of the $ to gold and transitioned to a flat currency system. The Swiss Franc was the last currency to be divorced from gold.

Current factors that impact gold prices

Like most other commodities, bullion gold investment price is determined by supply, demand and speculation. However with gold, unlike other commodities, savings and disposal rather than consumption have a significant role to play in driving the price of gold. Much of the gold mined since inception still exists in bullion or bulk produced jewellery form, and can potentially return to the market when the price is right. The current weak global outlook has also made people invest in gold as a safe bet which has been driving the price of gold

Considering the enormous quantity of gold above-ground in comparison with annual production, price is driven more by sentiment or demand instead of fluctuations in annual production or supply. According to World Gold Council figures, about 2,500 tonnes are mined annually, of which roughly 2,000 tonnes go into jewellery or industrial production/dentistry and only the remainder to exchange traded gold funds and retail investors.

Guest post Written by Ktkoh

Guar – The mining gold from India Coveted by US Miners

July 17, 2012 by Reporter Leave a Comment

The people of rajasthan India often live in poverty, specially a lot of the farmers in the desert land of Rajasthan India. But suddenly a small little bean grown in rajasthan India is changing many lives for the better , creating a flutter in the Indian commodity market and also worrying a lot of us miners who use this bean for a mining method called fracturing

Guar the Indian Bean and Mining by Fracturing

A recent discovery that guar could stiffen water so much that a mixture is able to carry sand sideways into wells drilled by horizontal fracturing, also known as fracking has made this bean a commodity in demand.

U.S. companies drilling for oil and gas in shale formations have developed a big appetite for the powder-like gum made from the seeds of guar giving many small-scale farmers in India a nice bonanza who produce 80 percent of the world’s beans.
Halfway around the world, earnings are down for an oil services giant, Halliburton, because prices have risen for guar (The bean that is used in fracturing), the bean that many Rajasthan farmers have now started to grow, abandoning their traditional farming crops. . The increase in guar prices is helping to transform this part of the state of Rajasthan in north-western India, one of the world’s poorest places.

The magic bean Guar from India

This hard little bean when ground up, it becomes an essential ingredient for mining oil and natural gas in a process called hydraulic fracturing. This bean Guar is so hard that it can crack teeth, has become an unlikely global player, and poor farmers in India have suddenly become a crucial link in the energy production of the United States.

For centuries in Rajasthan India , farmers here used guar to feed their families and their cattle. These beans are easier to grow in the Rajasthani desert, a land poor in rain. Commercial interest in guar first developed when food companies found that it absorbs water like a souped-up corn-starch, and a powdered form of the bean is now widely used to thicken ice cream and keep pastries crisp.

Fracking boom in the United States

The fracking boom in the United States and now spreading in Europe has led to a surge in natural gas production, a decline in oil imports and a gradual transition away from coal-fired power plants. "Without guar, you cannot have fracturing fluids," said Michael J. Economides, a professor of engineering at the University of Houston who is a fracking expert. "And what everybody is worried about is that there is virtually no guar out there now."

In March, the United States bought 33,800 metric metric tons of guar gum from India, the highest amount ever. Last year, U.S. firms bought an average 22,000 metric metric tons from India a month.

India produces about 85 percent of the world’s guar. Worries for this year’s monsoon, which is vital for an adequate crop has risen in speculation over commodity prices for guar

Vikas WSP, an Indian company that specializes in the production of guar powders. Vikas signed contracts with farmers guaranteeing a return of nearly $800 per acre if they planted guar, no matter what this year’s monsoon brought.

"Last year was an extraordinary year," said S. K. Sharma, managing director of Lotus Gums and Chemicals in Jodhpur. "In 35 years in this business, I’ve never seen that."

Mr. Sharma said his company would soon open a second plant dedicated entirely to serving gas companies, adding that he was cautiously optimistic that guar prices would remain robust. "But we know there are efforts to grow guar in China, Australia, California and elsewhere, and it has us worried,"

Neil Beveridge, an oil analyst at Sanford C. Bernstein & Company, said demand for fracking services should continue to grow rapidly as the industry expanded outside North America. "We’re already starting to see a big increase in Eastern Europe, Argentina, Australia, China and India itself," he said.

Mr. Economides, the Houston fracking expert, said. "There are no easy or cheap alternatives to guar,"

guar sowing increases
price of sugar
guar prices 2012
guar
guar gum price monitor 2012

That is good news for guar producers and farmers of Rajasthan India.

Are the wealthy taking over Australia ?

March 3, 2012 by Reporter Leave a Comment

Australia is losing its “fair go” culture and is under threat from a elite and rich group of wealthy business people – including Andrew forest, Gina Rinehart and Clive Palmer – who are using their riches to undermine good Policy and threaten our democracy –says Treasurer Wayne Swan . Mr swan has steered most businesses in Australia through the GFC with much less impact than has been felt throughout other economies.

Image Reference: The Monthly – Full Article

Mr Swan said Australians should be concerned about the excessive and increasing power of vested interests with power and wealth to back up their agenda to their own benefit.

This was evident when major Mining companies said they were cutting down expansions and staff due to the Mining tax and GFC and other factors, but soon as the Rudd led cabinet was shafted in favour of Julia Gillard they went ahead with their million dollar project expansions.

There was bitterness after the mineral resource rent tax and carbon price was introduced with the purses of the wealthy being hit. The big miners Invested millions of dollars in opposing these taxes and policies by advertising in TV and print media , saying it would hit the common man in Australia. It is unusual that this direct method was used by the wealthy corporations rather than politicians being influenced and lobbying being done which is often the case at times.

Mr swan has urged Politicians to cater to and look after the common mans benefit , and supporting the workers rather than succumbing to the lobbying of the wealthy and to give Australia the sense of fairness and decency it deserves.

The government is said to be in the midst of considering a report on media law reform. This could be the result of Gina Rinehart taking a large shareholding in The seven news media network , making her even more powerful which could be a cause for concern for many only not only within the media industry but also outside the media industry.

Radio , TV and Newspapers due to the power they wield have often have been claimed to support and make and break governments in other countries , deciding on who they decide to favour.

Mr swan goes on to write that the mining campaigns brought out by the wealthy people against the tax damaged the government , brought on instability and resulted in prime minister Mr Rudd being toppled. With this proposed Mining tax not going through, the government will be short of $110 Billion to use towards taxpayers benefit.

Mr swan said "It is the tiny 1 precent, or even 0.1 per cent (you know who they are) who are trying to drown out the others, who are blind to the national interest and pour their considerable personal fortune into advertising ,armies of lobbyist, dodgy modelling,and corporate and commercial manoeuvring designed to influence editorial decisions.

The good Black stuff that everyone wants– Coal

December 22, 2011 by Reporter Leave a Comment

India and china have been scouring the Australian shores for good deals on acquisitions this past year for our gold in black , coking coal and thermal coal resources. Australia is one of the world’s largest miner and exporter of coal. Prices for coking coal, used to make steel, may rise 50 percent next year to $291 a metric ton.

Rising demand in China and India for their energy needs has pushed mergers and acquisitions globally to a record $34.5 billion this year, with 192 companies acquired .

The possible combination of Whitehaven Coal Ltd. and Aston Resources Ltd. could create a giant of a company valued at A$5.1 billion ($5.1 billion).

International coal consumption is projected to climb by an annual 2.8 percent in the six years to 2016 due to rising demand to feed power generation stations and steel mills in China and India.

Deals and acquisitions In coal sector

Yanzhou was China’s biggest takeover of an Australian company with the A$3.1 billion acquisition of Felix Resources Ltd. in 2009.

Yanzhou Coal Mining Co., China’s fourth-biggest producer, plans to buy Gloucester Coal Ltd. for at least $2 billion.

International Coal Ventures Ltd., a group of Indian state- backed companies formed to buy overseas coal assets, is one of the bidders for Aquila Resources Ltd.’s Washpool coal mine in Australia

Peabody Energy Corp.’s impending $4 billion takeover of Macarthur Coal Ltd.

New Hope Corp., with a market value of A$4.7 billion, said last month is said to be in talks with several bidders.

Tata, India’s largest business group or JSW Steel Ltd. another large Indian steel company could possibly bid for the miner to secure thermal- coal mines.

Cockatoo Coal Ltd., with a market value of A$376 million, is another possible target.

Carabella, which has a market value of A$155 million, said in October that it had received “several unsolicited expressions of interest” in its Grosvenor West project in Queensland

Rising Prices of coking coal & thermal coal

Global imports of thermal coal may increase 5.2 percent next year to 581 million tons led by gains in India, Australia’s bureau said and analysts are predicting gains in price for coking and thermal coal and also and increase in imports from the major growing economies.

The value of Australian mining companies has fallen to the lowest since July 2010, dropping 35 precent from a high this year creating a very attractive price factor for takeovers and mergers in this sector.

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Mining rivals Mongolia & South Africa increase mining projects

September 18, 2011 by Reporter 1 Comment

Australia has been enjoying the riches of their mineral resources with a massive boom in iron ore, coal, LNG and other mineral exports. With the rise in prices of these mineral resources and Australia being just on the border of Asia, booming big economies like china and India are looking to increase imports and trade deals with this mineral rich neighbor.

Australia currently is enjoying the boom in the mining industry with new mining projects being announced and many expansions and mergers announced in the last two years due to this profitable sector. It attracts investors ands deals from its Asian neighbor’s because it has already got good infrastructure for steady supply of resources a reliable government and governance and reliable supply of the Mineral exports.

Rise of Mongolia and South Africa mining

South Africa and Mongolia have advantages over Australia where mining is concerned, they not only have access to cheap labour but the resources are said to be much richer according to experts and therefore less refining and processing required before export to other countries giving them an advantage in the resource’s price.

Mining in Mongolia

Mongolia is in the middle of a big economic transformation thanks to some really good mineral riches and government giving more access to outside companies to mine their riches thus making it a new investment hotspot. The country is one of the fastest growing economies of the world with a growth rate of 17 % a year and the Mongolian stock exchange was also the best performer in the world in 2010.

The Oyu Tolgoi copper gold deposit that was first explored unsuccessfully and then abandoned by BHP, is now in Canada’s IVANHOE Mining hands with plans underway for them to develop this ,one of the worlds largest copper –Gold deposits, with a big market for them conveniently right next door (CHINA and INDIA) . TAVAN TOLGOI is another estimated six billion tone coal deposit close to OYU TOLGOI and is said to be the largest underdeveloped coking coal project in the world.

There are other factors though where Mongolia has to step up with their infrastructure struggling to keep up with the pace of economic growth. The rapid economic change has also resulted in their mongolian currency the ‘”tugrik” appreciating quickly hurting other industries like tourism and the cashmere trade which has been a traditional earner for the mongolian people. With this rapid economic change creating class divides due to the perception of the mining wealth not distributed fairly, has brought some uncertainty with frequent regime changes happening in recent years.

Projects in Mongolia

Ivanhoe mining
East Asia Minerals Corp
ENTREE GOLD INC.
AREVA GROUP
Aspire Mining Limited
BHP BILLITON
Haranga Resources Limited
Aspire Mining Limited
MERITUS MINERALS LTD.

South Africa Mining projects surge

South Africa is the world’s biggest producer of platinum, and one of the leading producers of gold, diamonds, base metals and coal

Iraj Abedian, a South African economist has advised the mining ministry, saying South Africa isn’t the only mining power trying to determine how best to ensure its natural resources benefit as many south african people as possible, he said similar debates are going on in Latin America and Australia

Only recently , Colin Barnett in one of his speeches on mining commented that Australia should be well aware of its rivals in the mining industry, and south Africa can very soon become a competitor to selling its mineral resources to china and india at much competitive prices. Mining grew by 47% last year, according to the Zimbabwe Chamber of Mines, and had been forecast to grow a further 44% in 2011.

Botswana will lift a moratorium on new prospecting licences for coal, coal-bed methane (CBM) and related minerals by the end of September, a government official said on Friday

Projects in South Africa

Cortec Mining – Kenya
RioZim – Zimbabwe ( with RIO TINTO)
Murray & Roberts (M&R) – Zimbabwe
Lafarge – Zimbabwe
Anglo American (De Beers) – Botswana

Wrap up – Diggers & Dealers 2011 Conference

August 5, 2011 by Reporter 1 Comment

Some of the highlights of the just wrapped up Diggers and Dealers Mining Conference Held in the gold-prospecting hub of Kalgoorlie, Western australia from 01 Aug- 03 August 2011.

Diggers & Dealers Conference 2011- Highlights

For a forum that started with a dozen blokes in a pub in the West Australian mining town of Kalgoorlie-Boulder, Diggers and Dealers has morphed into the largest mining conference of its type in Australia and the third largest in the world.

The dealing and digging at Kalgoorlie WA

Iron ore company Gindalbie Metals’ has earned it the Dealer of the Year award at the Diggers and Dealers conference in Kalgoorlie due to managing a clever relationship with Chinese steel maker Ansteel

The digger of the year was WA-based miner Independence group which has made major developments on their mines near Kambalda in the Goldfields.

Small miners complained that the big miners BHP Billiton, Rio Tinto, and Xstrata – will be able to manipulate the MRRT’s rules to claim depreciation of their existing multi-billion-dollar mining assets against their expected MRRT liability, and almost completely negate the effect of the tax on their profits.

Gold miner Ramelius Resources is cashed up and ready for acquisitions. Ramelius’ shares have jumped more than 300 per cent in 2010/11, from 39 cents.

The dealermaker award went to Ivanhoe Capital Corporation for its success in developing gold and coal projects in Mongolia and Queensland.

KEITH JONES, MANAGING PARTNER DELOITTE (WESTERN AUSTRALIA), on china’s growth

"The going out policy initiated by the Chinese government at the turn of the century resulted in a surge of direct Chinese investment, up from $500 million in 2000 to $59 billion in 2010. While Australia remains one of the preferred destinations for Chinese investments, other regions such as Africa and Latin America have seen accelerated inflows of Chinese capital over the past three years."

Joseph Riggio, of Casimir Capital, says cashed up investors in New York, Boston and Chicago want to diversify out of the floundering US dollar and are increasingly looking to ASX listed miners to do that. He said "There’s a perception that Australian companies represent a better value than their Canadian counterparts because of their focus on cash flow,"

Australia’s Billion dollar club gets richer

May 26, 2011 by Reporter 3 Comments

Australia’s richest billionaire’s have just been announced and they are quite a few familiar faces on the list, in fact most on the rich list have not changed but they just got richer. The members of the BRW 200 rich list total wealth increased 23% to $167.25 billion, a rise of $31.41 billion.

“Gina Rinehart” From WA has become the first woman in 28 years to top the “BRW rich list 2011”, with the iron ore magnate’s fortune doubling over the past year to $10.3 billion and Glencore chief executive “Ivan Glasenberg” has taken second place.

Worlds Top Billionaires 2011

Mexican Telco tycoon Carlos Slim tops the list of the world top billionaires , with estimated worth of $US53.3 billion ($58.3 billion), with Microsoft founder Bill Gates inching behind him.

Australia’s Top Billionaires 2011

1. Gina Rinehart ( Hancock prospecting –mining & resources)

Mrs Rinehart has inherited some of her wealth from her legendary father, Lang Hancock, but she has succeeded in building “Hancock Prospecting” into a major iron ore producer in Western Australia and also plans in coal rojects in Queensland.

2. Ivan Glasenberg (Glencore – Commodities trader)

The South African-born, Swiss-based chief executive of newly-listed commodities trader Glencore made a stunning debut with $8.8 billion and a listing of his company

3. Andrew ( twiggy) Forrest ( Fortescue Metals Group- Iron Ore Mining)

Mr. Andrew Forrest from Perth WA has also become richer, thanks to soaring iron ore prices fuelled by Chinese demand.

4. Anthony Pratt ( Manufacturing)

Anthony Pratt is Chairman and CEO of Pratt Industries and Group Deputy Chairman of Visy Industries, the world’s largest privately-owned paper and packaging company. He is the son of the late Richard Pratt, and tone of the rising wealthy persons list in Australia according to the BRW Rich 200 list 2010.

5. Clive Palmer ( Mining – Resources)

Mr Palmer made his fortune by selling iron ore interests in Western Australia to Chinese. His company has secured access to 160 billion tonnes of iron ore reserves in the Pilbara Ranges, in remote Western Australia.

6. Frank Lowy ( Property )

Shopping centre mogul “Frank Lowy” had made his fortune becoming the co-founder of the Westfield shopping centre’s which are spread over Australia, New Zealand and other countries.

James packer also increased his wealth to finish eight and Mining magnate Nathan Tinkler was the youngest member of the list at 35, with a $1.01 billion fortune

Interestingly the Forbes Billionaires list for Australia differs a little bit from the BRW rich list with it listing the No 1 as Gina Rinehart, and then Andrew Forrest , Frank Lowy And Family, James Packer and Harry Triguboff in the 2nd , third and fourth position respectively. Check out the Forbes list here

Western Australia’s billionaires

In Western Australia the rich mining state , Billionaires Ms Rinehart and Mr Twiggy Forrest were trailed by building and construction magnate Len Buckeridge who’s wealth came it at $2.6 billion, mining tycoons Angela Bennet and Michael Wright with $2.1 billion, and property mogul Stan Perron wealth stood at $1.8 billion

Check out some budding entrepreneurs and last years BRW Magazines Young Rich List 2010 here

Some related links – The Forbes rich list 2010 , World’s Youngest Billionaires ,

Technorati Tags: billion,breakaway resources,brw,fortune,mineralogy,rich,wealth,billionare,business-economics-and-finance,industry,mining,human-interest,people,australia,perth-6000

Coal prices set to soar with australian and african floods and rains

January 7, 2011 by Reporter Leave a Comment

Coal Flooding News: As the australian floods and devastation news in the eastern states hits the world news all over , another event in africa is adding to the pain of coal importing countries. To add to the coal export worries in australia, now africa us having heavy rains impairing thier coal exports as well.

This chain of event can mean only one thing higher coal prices due to this shortage in coal in australia and africa which are one of teh bigger coal exporting countries. China and INDIA which have substantial coal imports from these countries will certainly be affected , even though china has its own coal producing mines.

Three big coal miners BHP Billiton Ltd., Xstrata Plc and Anglo American Plc, already facing delays in coal shipments from flooding in Australia, said their South African operations are also being hit by unusually high rainfall.

South Africa Heavy rains effect coal exports

South Africa raised the flood-warning level for its central Orange River area today as water levels in places were expected to reach the highest since 1996. The country’s biggest dam, Gariepdam, is at 113 percent of “full” levels and the second- biggest, Vanderkloof, is 107 percent full, according to figures on the website of the government’s water department.

Coal for delivery to Amsterdam, Rotterdam or Antwerp with settlement next year rose $2.85, or 2.4 percent, to $119.75 a metric ton at 12:28 p.m. in London. Prices rose as high as $120 earlier yesterday.

Australia Flooding effects coal exports

One of Queensland’s largest coal terminals has stopped exports and the largest in the state is at just 60 per cent capacity, ripping nearly two million tonnes of coal a week from the global supply. About 40 mines in Queensland have been affected by flooding and several have said they cannot meet their contracts.

Australia’s coal exports will probably take a few months to recover after the floods, Barclays Capital said in a report. That means further upward pressure on prices in the near term, Barclays analyst Yingxi Yu said in a report e-mailed today.

Get the Australian 2010 Elections Guide free

August 20, 2010 by Reporter 2 Comments

((((( Voting is compulsory for Australian citizens )))))

Who are the main parties looking to win this election

1. Liberals – www.liberal.org.au

2. Labor – www.alp.org.au

3. Independent parties (Like : Greens, Christian Democratic Party, Australian SEX party ,Family first and Independent – parties may vary in your state and territory) . For a detailed list of parties and their representative in your territory and town got to http://aec.gov.au/election/who-are-the-candidates.htm

To get more information on voting – eligibility to vote, voting centre’s, Etc go to www.aec.gov.au

We have put together a Free election guide which you can download giving you information on how to vote , where to vote , timings etc and links to much more information.

Download the Election 2010 pdf guide file here

Date: Election Day is Saturday 21 August 2010

Timing: Voting centres will open at 8 am to 6PM Sharp

Where : At any polling ( voting) place in your state or territory on election day ( if interstate check for details below)

The main two candidates are JULIA GILLARD from LABOR PARTY and TONY ABOTT from LIBERAL PARTY

Potash Mining and Australia

May 18, 2010 by Reporter 3 Comments

Is potash the next big mining commodity in Australia ?

Potash is a group of potassium minerals (oxides, chlorides, sulphates, nitrates and carbonates) used for fertilizer production with the most commonly extracted being potassium chloride salts deposited as sedimentary salt beds formed by the evaporation of ancient seas.

BHP Billiton Ltd., the world’s largest mining company, said in recent days it agreed to acquire Athabasca Potash Inc. for about C$341 million ($322 million) to add to assets in Canada containing the crop nutrient potash.

Potash is far from the most glamorous product of the global mining industry, it is however, one of the most important commodities mining provides to the world.

Mining Growth in Australian & Global potash sector

Athabasca has one of the largest potash exploration permit areas in the so-called Saskatchewan basin, covering approximately 6,900 square kilometres (2,664 square miles), BHP said in a separate statement.

The Athabasca deal will give BHP access to a total exploration area of more than 14,000 square kilometres in the so-called Saskatchewan potash basin, BHP said. Saskatchewan represents approximately one-third of the world’s potash production capacity and has approximately 53% of global potash reserves. It is big business. Potash Corp of Saskatchewan is worth more than Barrick Gold – the market caps are $US39 billion and $US33 billion respectively.

Potash is the common name for potassium carbonate and various mined and manufactured salts that contain the element potassium in water-soluble form. In some rare cases, potash can be formed with traces of organic materials such as plant remains.

POTASH TECHNICAL INFO

The main potash mineral of potential economic interest on the Colorado project is sylvite – a high-potassium chloride salt (KCl) containing 63% potassium (K2O) by weight. Sylvite is water soluble and the most favoured salt mineral for potash solution mining.

The sylvite-bearing rock is called sylvinite and typically contains about 10-50% sylvite mixed with halite, minor shale beds and other salts. The main saleable product after mining and processing of the sylvinite is muriate of potassium (MOP) a sylvite and halite mix containing greater than 95% sylvite.

Potash and mining in australia

Potash is a source of potassium which, in fertilisers, raises yields and disease resistance for plants. The potash price has doubled in the past three years. Potash production rates are related to demand projections whilst salt output is roughly determined by the development required to achieve the potash target.

Potash is a general term covering several types of potassium salts, of which the most important is potassium chloride, the mineral sylvite.

Potash is a nutrient essential for plant growth, and is a cornerstone of modern agricultural fertilizers. Roughly 95 per cent of world potash production goes into fertilizer, while the other five per cent is used in commercial and industrial products – everything from soap to television tubes.

It is well-known that Australian soils are low in phosphorus. What is not so well-known is that many of our soils are also low in potassium. As a result, the animal manures that we increasingly use on our gardens in place of chemical fertilizers are also low in potassium. This has led to an increase in the incidence of plant diseases.

Australia now imports all its potash, but Reward is hoping to fill a large part of that demand. There’s just that native title barrier and, of course, further drilling before Reward can cross the production bridge. Although potash could never be described as a fungicide, its correct use can certainly minimize diseases such as blackspot, rust and powdery mildew. These appear most visibly on the leaves and fruit of affected plants, but can affect any part.

In 2005, these three emerging countries (China, India and Brazil ) consumed just 42% of the level of potash scientifically recommended for them. Now these three countries, “require a combined 25-million more potash tons annually to meet scientifically recommended application levels.” On existing farmland, China should increase its potash consumption by more than 100%, while India should increase its consumption by more than 6-million tons, and Brazil by 5-million tons, annually.

The top producing country is Canada, followed by Russia, Belarus, Germany, and the US, while other important potash producers are Israel, Jordan, Brazil, and China.

In fact, there are just 13 global competitors in the sector. They are (from biggest to smallest): Potash Corporation (PotashCorp) of Canada, Belaruskali (Belarus), Mosaic (Canada, US), Silvinit (Russia), Uralkali (Russia), ICL (Israel, Spain, UK), Kali+Salz (Germany), Sinofert (China), APC (Jordan), Agrium (Canada), Intrepid (US), Companhia Vale do Rio Doce (Brazil), and SQM (Chile).

DRILLING FOR POTASH

Solution mining costs are directly related to drilling cost and the quantity of potash produced from each well. A variety of production well configurations for solution mining are available dependent upon the geology of the deposit. Most solution mining has involved extracting potash-bearing solutions from flooded underground mines or used well designs which access the potash with vertical drill holes (technique recommended for the Colorado Potash Project).

These extraction techniques are the lowest cost solution mining operations and enable large tonnages to be mined. With improved controlled drilling methods horizontal well designs are being employed that enable thinner, high-grade beds to be cost effectively extracted but these are generally higher cost, lower tonnage operations compared to the vertical well configurations.

And, it must be noted, PotashCorp holds 32% of SQM, 28% of APC, 22% of Sinofert, and 11% of ICL. All told, PotashCorp controls 22% of global potash capacity. The first ten of the companies listed above jointly hold more than 95% of global capacity

Other potash projects

Caldera Resources In

(Caldera is engaged in diamond exploration in Australia. Three projects are located in the Pilbara region of northern Western Australia, one of which is joint ventured with Mr. Ronald Winston. The Company also has one project located adjacent to the Ellendale Lamproite Field in the Kimberley region of Western Australia. Caldera also has three base metal/gold projects in South Australia.)

Potasio Rio Colorado (PRC) potash project in Argentina

AusPotash

Aus Potash is now a wholly owned subsidiary Sirius Exploration Plc. For further information, please go to: www.siriusexploration.com …
www.auspotash.com

Corumbá iron ore mine in Brazil

Passport Metals Inc

Talon Metals Corp

Sainik Coal Mining Pvt. Ltd., an India Company

Asia Pacific Potash Corporation’s Udon Potash Project in north-eastern Thailand

Australian Potash Company Pty Ltd

( Carnarvon Basin Project, an exploration property covering approximately 4,280 square kilometers of prospective potash horizons in an extensive evaporate basin known as the Southern Carnarvon Basin in Western Australia. Previous drilling, consisting of three widely spaced oil and gas wells over a distance of 25 kilometers, has indicated the potential for significant potash and other sodium and magnesium salts)

Boulby Potash Mine, United Kingdom

In the 1960s, with fertiliser demand growing and the UK reliant on imported potash, ICI decided to develop reserves 40km from its Cleveland facilities in north-east England. The 200ha mine site is at Boulby, half-way between the Tees estuary and the port of Whitby. The design capacity is now over 1.0Mt/y of potassium chloride (KCl) product, sufficient to maintain a 55% UK market share and substantial export sales

Fertilizers Related to potash which could see some interest at some stage :
Nitrogen (urea, ammonium nitrate, ammonium sulphate), phosphate fertilizers (superphospahte, dap, map) ,potassium (muriate of potash, sulfate of potash) , compound fertilizers (npk granulated, bulk blended)