Potash Mining and Australia by Reporter on May 18, 2010
in Australian,Business,Mining,Stock Market
Is potash the next big mining commodity in Australia ?
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. 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.
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.
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.
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