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“This is one of the largest untapped re- siderations of miners and investors as the ruler over the various players. Eidne
sources – Australia has about 50% of the advantageous for WA producers. believes the established potash produc-
world’s salt lakes – in one of the best min- “From an ESG perspective, the WA ers – seven companies account for more
ing jurisdictions in the world,” Eidne said. projects are top drawer,” he said. “It is than 75% of global supply – are eyeing
“Miners and investors are looking in- one of the strongest points the produc- off the upstarts.
creasingly for Tier 1 jurisdictions and WA ers have; they are low impact, have good “These projects are not going to stay
is a world-class mining destination with rehabilitation and clean processing.” with the smaller guys once they are up
the skills and the infrastructure to match. Those considerations play into the ma- and running but they are probably too
It compares very favourably to Europe, jor mining houses’ pivot towards greener small for the likes of BHP, Rio and Anglo,”
where there is a strong environmentalist commodities. As well as Anglo’s recent he said. “But for the likes of Yara, Nutrien
anti-mining sentiment, and the African purchase, BHP Ltd has expressed its in- and the other fertiliser companies, they
countries which are politically unstable terest in building its fertiliser group via its could be a good fit. It will allow them to di-
and often lacking in infrastructure.” Jansen potash project in Canada, but so versify their supply and production away
However, where WA has mining ad- far the majors have failed to break into a from Mannheim and improve their ESG
vantages, the international companies market dominated by integrated fertiliser credentials.”
boast a market head start given their producers. When and where established produc-
proximity to major markets in Europe, the Given the WA juniors are operating in ers move into the WA sector could de-
US and Brazil. the majors’ iron ore backyard, it could be pend on how long it takes for each of the
Eidne also points to growing ESG con- expected BHP and Rio Tinto Ltd had run juniors to hit the market.

“ If the WA sector suddenly

brings on 1 mtpa it will
definitely impact prices. But the
WA projects all claim to be at
the bottom of the cost curve,
particularly in comparison to
the Mannheim producers so
there is some inbuilt protection
for the WA producers.

aUSTRaLIa’S PaYDIRT MaY 2020 Page 25