All of this is welcome news for potash investors — many potash-mining operations have closed in recent years, and some are waiting on the sidelines for better days and improvements in potash prices.
The US Geological Survey estimates that global annual potash production reached 39 million metric tons in 2023, while world potash reserves came in at greater than 3.6 billion MT of potassium oxide, or potash, equivalent. Here, the Investing News Network provides a look at world potash production by country. All production and reserves data is reported in metric tons of potassium oxide equivalent.
Potash production: 13 million metric tons; potash reserves: 1.1 billion MT
Leading the list of the top potash countries by production is Canada, which produced 13 million metric tons in 2023. While the nation remained the world’s biggest potash producer, it saw its potash production level fall by nearly 11 percent compared to 2022.
The US Geological Survey attributed this production drop to a dock workers strike in July that blocked potash shipments from the Port of Vancouver in British Columbia, which led some Canadian mines to close temporarily. “Production resumed at those mines after the strike was settled in August,” the agency explained.
Potash production: 6.5 million metric tons; potash reserves: 650 million MT
In 2023, Russia posted 6.5 million metric tons in potash production, down by 300,000 MT from the previous year. This leaves the nation’s potash output down more than 28 percent from the 9.1 million MT achieved in 2021.
Uralkali is Russia’s premier potash company and one of the world’s leading potash producers, accounting for roughly 20 percent of global supply pre-war. The company has five mines and seven ore treatment and processing mills.
In response to Russia beginning its invasion of Ukraine in February 2022, the EU placed import quotas on potash from Russia, and the US sanctioned specific companies, limiting potash imports. Both the EU and US had eased their restrictions on Russian fertilizer imports in late 2022 in reaction to growing concerns about global food insecurity.
Potash production: 6 million metric tons; potash reserves: 180 million MT
China’s potash production remained flat in 2023 at 6 million metric tons, the same as its 2022 output.
Potash is extremely vital for China — the country is the largest consumer of the fertilizer, accounting for approximately 20 percent of world potash consumption. China’s domestic demand for the material is higher than its homegrown potash supply, making the country reliant on potash imports, especially when it comes to MOP.
Potash production: 3.8 million metric tons; potash reserves: 750 million MT
Potash production in Belarus totaled 3.8 million metric tons in 2023, down by 200,000 MT from its 2022 levels and down 50 percent from 2021 levels. Prior to Russia’s invasion of Ukraine, output from the Eastern European country had been on an upward trajectory since 2016. Belaruskali is the country’s largest industry operator, with six mines and four processing factories.
Belarus potash production and exports for 2023 were well below the previous year, reports the US Geological Survey, even though the nation began exporting potash by rail to China rather than from ports in Russia.
Potash production: 2.6 million metric tons; potash reserves: 150 million MT
Germany’s potash production came in at around 2.6 million metric tons in 2023. It has fallen slightly in recent years, and was down 100,000 MT from 2022.
The world’s first potash deposits were discovered in Staßfurt in Saxony-Anhalt, now a German state, in 1856, and potash mining began at Staßfurt five years later. Germany was the world’s only potash producer until the beginning of the 20th century.
Potash production: 2.4 million metric tons; potash reserves: large*
In 2023, Israel produced 2.4 million metric tons of potash. Annual potash production in Israel has remained in the 2 million to 2.5 million metric ton range since 2017. The country recovers potash from the Dead Sea.
* As per the US Geological Survey, “Israel and Jordan recover potash from the Dead Sea, which contains nearly 2 billion tons of potassium chloride.”
Potash production: 1.8 million metric tons; potash reserves: large*
Potash production in Jordan increased marginally to 1.8 million metric tons in 2023 from 1.64 million MT the prior year. Arab Potash Company, located in Jordan, is the seventh largest producer of potash by volume and the sole producer of potash in the Arab region. It has helped make Jordan a key potash supplier for India and Asia. Like Israel, Jordan recovers potash from the Dead Sea.
* As per the US Geological Survey, “Israel and Jordan recover potash from the Dead Sea, which contains nearly 2 billion tons of potassium chloride.”
Potash production: 1.4 million metric tons; potash reserves: 75 million MT
The Southeast Asian nation of Laos was the eighth largest potash-producing country last year, taking the spot from Chile. Laos produced 1.4 million metric tons of potash in 2023, doubling the previous year’s output of 700,000 MT and a massive leap from the 260,000 MT of potash produced in 2021.
Potash production: 600,000 metric tons; potash reserves: 100 million MT
Chile recorded production of 600,000 metric tons in 2023. Previously a much larger producer, Chile put out 1.2 million MT of potash in 2018, but its production dropped below 1 million MT in 2019 and has slipped further since then.
Potash production: 400,000 metric tons; potash reserves: 220 million MT
In 2023, US potash output totaled 400,000 metric tons, down 30,000 MT from its 2022 level. However, the country managed to hold onto its spot as the 10th largest potash-producing nation. The US has potash reserves of 220 million metric tons.
New Mexico is the source for the majority of US potash production, according to the US Geological Survey. The state is home to two underground mines and one deep-well solution mine. Utah is also a sizeable contributor to the nation’s potash industry, with three operations.
Potassium sulfate or sulfate of potash (SOP) and potassium magnesium sulfate (SOPM) represent about 70 percent of the country’s total potash production, with MOP accounting for the remainder of production.
Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.
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