Potash Is The New Cash Cow

Saskatchewan Potash is projected to generate more money for the Saskatchewan economy than all other natural resources combined.

Potash is a pink mineral and it has 3 main purposes: fertilizer (95% of the world’s potash is used in fertilizer), livestock feed supplements and industrial processes. In fertilizer, potash is what enhances water retention of plants, increases crop yields, and increases plants’ disease resistance. In feed supplements, the key function of potash is to contribute to animal growth and milk production. In industrial production potash is used to produce glass, ceramics, soaps, etc.

Potash in Saskatchewan is expected to generate $1.9 billion for the province in the 2009-2010 fiscal year and is estimated to make more money than provincial income tax.

Finance critic, Harry Van Mulligen, says that we should be cautious and he questions the economic assumptions behind the potash revenue projections and he points out that the projected sales volume was initially 10.3 million tonnes but that is supposed to decrease by about 10% since the budget papers went to print. Spokespeople for Agrium said that the recent production cutbacks will not be an important factor when it comes to how much money the province takes in.

Kari Calder
Saskatoon Real Estate Agent
Century 21 Conexus Realty Ltd.

This entry was posted on 19. March 2009 at 04:08 and is filed under Environment, Saskatchewan News, Saskatchewan, Saskatoon News, Saskatoon. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response or trackback from your own site.