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The Russia-Ukraine war revealed the vulnerability of the potash supply chain, said Gensource Potash CEO Mike Ferguson.
On Friday Ferguson recorded Kitco Roundtable with mining audiences manager Michael McCrae and Kitco correspondent Paul Harris.
Gensource is advancing a new technology, which Ferguson said is more modular and requires less capital. Gensource produces potash using a closed-loop method called selective extraction. A hot salt brine that is injected into ore bodies and then pumped out.
Russia and Belarus account for approximately 40 percent of global potash production and exports, noted Nutrien in its Q1 guidance. Due to sanctions and other restrictions, exports from the region are 20% lower this year compared to the year prior.
"The invasion of Ukraine by Russia really has shown a light on or exposed the lack of resiliency in the supply chain for for potash," said Ferguson, noting that high concentration within the industry and older mines have also contributed.
India announced that it was increasing subsidies for fertilizers due to prices rises for the commodity.
