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“We have seen an increased aware- nitely impact prices. But the WA projects a reminder to the WA potash hopefuls
ness around ESG issues in the Mannhe- all claim to be at the bottom of the cost that they are not alone in recognising the
im process space,” he said. “It is viewed curve, particularly in comparison to the growth potential of fertilisers. A string of
as environmentally unfriendly and cus- Mannheim producers so there is some other potash projects are being devel-
tomers are looking for alternatives.” inbuilt protection for the WA producers. oped around the world, including ASX-
Cost structures are also a major con- “I don’t think it will be truly disruptive listed juniors in Europe and Africa.
sideration, according to Swiericzuk. and displace the Mannheim production In Spain, Highfield Resources Ltd ex-
“There is essentially a bifurcation of because the market will be there for pects to receive final permitting for its
the cost curve; a complete separation both.” 500,000 tpa Muga MoP project by the
between primary and secondary produc- Investors are backing this prediction. end of the year. Meanwhile in Germany,
tion,” he said. Salt Lake’s $US165 million debt facility Davenport Resources Ltd has ambitious
While more than 50% of the Mannheim with Taurus Funds Management, final- plans for its 5.3nt resources at South
producers are loss-making at $US410/t, ised in late 2019, was the strongest in- Harz project including MoP, SoP and
the WA juniors are all pitching projects dication to date international financiers magnesium sulphate.
within the bottom cost quartile of global were eager to enter the potash market. In Africa, Kore Potash is taking on the
SoP production. Salt Lake’s DFS esti- Danakali also secured financing with the sizeable 2.2 mtpa Sintoukola MoP pro-
mated a C1 cash cost of $US205/t, Ag- African Development Corporation for its ject in Republic of Congo while the most
rimin’s $US222/t, Reward’s $US335/t Colluli project before Christmas then, in advanced of the international juniors is
and Australian Potash’s $US262/t. January, Anglo American plc announced Danakali, which is developing the Col-
Eidne said cost advantages would be a £405 million takeover of troubled Sirius luli project in Eritrea. Unlike the solar
vital in the WA potash juniors establish- Minerals and its Woodsmith polyhalite evaporation plays in WA, Danakali will
ing themselves in the SoP market. project in North Yorkshire. mine solid salts, lowering its cost base
“There is a valid concern in any grow- Woodsmith is set to produce a special- still further.
ing sector about how new product could ty SoP product, POLY4, which currently The challenge for all the internation-
be absorbed,” he said. “If the WA sector boasts a market of just 200,000 tpa. ally focused potash developers will be
suddenly brings on 1 mtpa it will defi- Anglo’s purchase of Woodsmith was matching the WA’s investment profile.

Page 24 MaY 2020 aUSTRaLIa’S PaYDIRT