The Arizona Geological Survey released the first calculation of potash resources in the Holbrook basin of east-central Arizona, indicating there may be more than 2 billion tons present. [right, isopach map of potash in the Holbrook basin from the report]
Calculating tonnage for the entire deposit, assuming 6% and 20% grades, as reported by exploration programs, yields 682 million metric tons to 2.27 billion metric tons, respectively.
The Potash Corp. of Sasketchewan (PCS) says potash prices have more than tripled to more than $1,000 a tonne this year and inventories are at record lows. The PCS CFO said yesterday that potash producers are unable to supply 8 to 10% of world demand this year. He predicts a potash shortage for the next five years. A year ago, potash spot prices were about $200 per tonne and three years ago were in the $50-100 range.