rio potash asset right next to bhp

Just as KPC looks to re-list the big boys are making all the right moves in preparation of the long awaited fertiliser production spike that has to happen.

We may see some short term pain upon re-listing guys but when the dust settles and Madam plays out her aces KPC will be taken as the real deal in the potash space.

China IMO cannot wait to get their hands on our potash!!


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Rio potash asset right next to BHP

STAFF REPORTER MARCH 18, 2014 4:00AM

Mining giant Rio Tinto has a big potash deposit in the same Saskatchewan basin where rival BHP Billiton is spending $US3.8 billion ($A4.2bn) just to be prepared to mine the mineral when the anticipated fertiliser production spike kicks in.

The Australian reports in Rio Tinto’s annual strategic report of 2013 the miner describes the KP405 potash discovery as the eighth “tier-one” discovery in the past decade from its exploration group.

"Drilling results indicate encouraging potash grade and thickness," Rio said, according to the newspaper.

The reason why the true significance of the discovery appears to have been somewhat hidden until now, at least to the Australian audience, is that Rio didn’t fill in the details on KP405 as rival BHP Billiton adopts the ‘Aussie potash’ title.

But Rio’s partner Acron, from Russia, has filled in the details, revealing the deposit has inferred resources of 1.4 billion tonnes of potash with an average grade of 31 per cent.

The Australian reports that this compares to BHP’s 6.6 billion tonnes of total resources at an average grade of 26 per cent.

Yesterday, Rio said it paid $US7.5bn ($A8.3bn) of taxes globally in 2013, most of which was in Australia.

The miner also said it’s increasingly worried about compliance costs and that its Oyu Tolgoi copper-gold project in Mongolia is facing an $US800 million writedown if its dispute with the local government continues to delay the project’s expansion.