Michigan Potash Deposit Worth $65 Billion

You’ve heard of shovel-ready projects?

Western Michigan University’s Michigan Geological Repository for Research and Education, working in conjunction with the company Michigan Potash, said that it has rediscovered a mineral deposit in West Michigan potentially worth billions of dollars that could establish Michigan as a leading U.S. supplier of a key fertilizer used by farmers worldwide, reports the Kalamazoo Gazette.

“This is the United States’ only shovel-ready potash project,” said Theodore Pagano, a potash geologist, engineer and general manager of Michigan Potash Co. LLC, the company that now controls the Borgen Bed, which lies under 14,500 acres in Mecosta and Osceola counties. “What we’re looking at is the introduction of an industry that is critical to the economic health of the state. We’ll be producing a Michigan product for Michigan farmers that would dramatically reduce the expensive transport costs on the more than 300,000 tons of potash consumed in our state annually.”

At current market prices, the deposit is estimated to be worth $65 billion, said Pagano in a phone interview with MLive/Kalamazoo Gazette. Michigan Potash has been purchasing the mineral rights, which the previous owners had let lapse, for the past three years, as well as making sure it was technically, economically and logistically feasible to put the deposit into production, he said.

Production would not begin until mid-2014 at the soonest, said Pagano, who estimated it would take about three years for a build-out. He estimated that the project would create 300 construction jobs, as well as 110 full-time jobs at the site.

The high quality of the mineral resource has the potential to create a multibillion-dollar industry in Michigan that would surpass the state’s historical oil and gas production revenues, as well as create several hundred jobs in Osceola and Mecosta counties, where the deposit is located, said Pagano.

It also could help the state’s agriculture industry, as well as the Midwest as a whole, offering a locally sourced supply of the fertilizer for corn and soybean farmers, said the WMU geologists who worked on the project.

“One of the things that makes this so valuable is that it is an incredibly rich deposit that is in easy reach of the enormous demand from Midwest corn and soybean farmers who operate within a 500-mile radius of this deposit,” said William Harrison, professor emeritus of geosciences and director of the geological repository at WMU. “This is an opportunity for new wealth to come from the use of natural resources never tapped before.”

Potash, potassium chloride, is found in areas once covered by inland seas. After the seas evaporated, the potassium and sodium chloride deposits crystallized into potash ore and were covered by layers of rock and soil. Potash is mined in 13 countries, including Canada, Russia and Belarus. In the U.S., New Mexico is by far the largest source, with smaller amounts mined in Utah and Michigan. U.S. domestic potash production has declined by 65% since 1962, and the country imports more than 82% of its potash fertilizer. U.S. potash prices increased 1,000% between 1962 and 2012, before dropping this summer.

In the Midwest, most corn and soybean farmers get their potash from New Mexico or Canada and can pay upward of $400 a ton. Michigan farmers used about 300,000 tons of potash annually. About $40 to $60 a ton of that cost is for transportation, said Linda Harrison in a phone interview.

Read the full article on Mlive.com.

Leave a Reply

Fertilizer Stories

Flooded corn in Indiana
FertilizerBoth Wet and Dry Conditions Threaten Nitrogen Loss
May 15, 2017
The weather is notoriously unpredictable, leading to challenges for planting, harvesting and applying the nitrogen (N) your corn crop needs. Read More
Iowa waterways
FertilizerDow AgroSciences Recognizes Ag Retailers’ Role in Protecting Iowa Water Quality
April 6, 2017
The state of Iowa and its agriculture community have worked for decades to preserve soil health, protect water quality and Read More
Yara West Sacramento Ribbon Cutting
Crop InputsYara West Sacramento Is Newest Addition
March 27, 2017
Yara’s West Sacramento Terminal was officially welcomed March 21 as the newest Yara North America facility in the U.S. While continually Read More
Nutrients for Life Foundation Teacher
FertilizerNutrients For Life Foundation Celebrates 10 Years Teaching Fertilizer Education
March 23, 2017
Those in agriculture know fertilizer is a vital ingredient to grow strong, productive crops. In fact, fertilizer is responsible for Read More
Trending Articles
Migrant farm workers
LegislationTrump: Immigration Crackdown Won’t Impact U.S. Agriculture
May 16, 2017
President Donald Trump said he would seek to keep his tough immigration enforcement policies from harming the U.S. farm industry Read More
AGCO Ratliff featured
Eric SfiligojRemembering Robert Ratliff
May 15, 2017
With all the fast-paced happenings in agriculture this spring, with multiple mergers in the works and planting season in full Read More
Case sprayer nozzle closeup
EquipmentSpray Application: A Nozzle Renaissance
May 2, 2017
If you had asked four-decade ag veteran Mark Bartel, President of Wilger Inc., just a few years ago what lay Read More
ManagementWashington Update, Dow-DuPont Earnings, and the Passing of an AGCO Legend
April 27, 2017
Editors Paul Schrimpf and Eric Sfiligoj talk about the latest Beltway news, crop protection company 1st quarter numbers, and the Read More
Crop InputsFlying Under the Radar No More, FMC Goes Big
April 13, 2017
Describing FMC as “under the radar,” admittedly, is probably a stretch. But in a snap of the fingers, FMC upped Read More
Young Corn Plants
Crop NutritionStill Hunting Yields
April 1, 2017
There’s no denying it — the agricultural marketplace today is undergoing a fundamental shift in fortunes. Not too many years Read More
Latest News
Eric SfiligojMonsanto ‘Picks Its Battles’ by Nixing Deere Deal
May 23, 2017
Having been in the trade journalism game since the mid-1980s, I remember several watershed moments during my career. One of Read More
FungicidesSyngenta Launches New Seed Treatment Fungicide
May 22, 2017
Syngenta has announced the launch of PLENARIS seed treatment fungicide for the control of downy mildew in sunflower. PLENARIS contains Read More
Corn close up
Crop InputsMonsanto’s First HPPD Herbicide Garners EPA Appro…
May 19, 2017
Monsanto announced today that EPA has federally approved Harness MAX Herbicide, the first herbicide in the Monsanto portfolio to provide Read More
ManagementPrecision Planting Deal, China Developments, and Enviro…
May 18, 2017
Editors Eric Sfiligoj and Dan Jacobs discuss the latest news on John Deere’s now dead deal for Precision Planting, China’s Read More
Soybean aphid leaf
InsecticidesMulti-state Research Reveals IPM Best Option for Treatm…
May 17, 2017
About 89.5 million acres of soybeans will be planted across the U.S. in 2017 — a record high, according to Read More
GROWMARK-2017-Interns
CropLife 100GROWMARK Names 2017 Summer Interns
May 16, 2017
Forty-two college students are exploring agricultural career opportunities this summer as GROWMARK interns. They are working at FS member cooperatives Read More
Migrant farm workers
LegislationTrump: Immigration Crackdown Won’t Impact U.S. Ag…
May 16, 2017
President Donald Trump said he would seek to keep his tough immigration enforcement policies from harming the U.S. farm industry Read More
Flooded corn in Indiana
FertilizerBoth Wet and Dry Conditions Threaten Nitrogen Loss
May 15, 2017
The weather is notoriously unpredictable, leading to challenges for planting, harvesting and applying the nitrogen (N) your corn crop needs. Read More
farmer Kip Tom
Precision AgAg Tech: On the Cusp of Something Big?
May 15, 2017
The investment and ag-tech sectors’ continuing courtship of agriculture, smoldering for three or four years now, was well in evidence at Read More
AGCO Ratliff featured
Eric SfiligojRemembering Robert Ratliff
May 15, 2017
With all the fast-paced happenings in agriculture this spring, with multiple mergers in the works and planting season in full Read More
Greg Musson, Gar Tootelian
ManagementOpinion: Shaking Your Perspective in Ag Retail
May 12, 2017
Some of you I’m sure have encountered our recently retired salesman extraordinaire, Dan Bellanger. He worked in the industry for Read More
Exterior view of CPS Big Lake facility which includes enclosed receiving and load out area
CropLife 100New Alternative Weed Resistance Traits Could Experience…
May 12, 2017
It wasn’t too many years ago that ag retailers and their grower-customers could hardly wait for new options to fight Read More
Diane Allemang and Dan Jacobs
Crop InputsFMC Agricultural Solutions, Casa Pacifica Partner to He…
May 11, 2017
FMC Agricultural Solutions is teaming up with Casa Pacifica Centers for Children and Families, an organization that supports vulnerable children Read More
UncategorizedWhat’s Up With ARA
May 11, 2017
CropLife Editor Eric Sfiligoj talks with Brian Reuwee regarding what issues are on the docket for the Agricultural Retailers Association. Read More
BASF Maglis tablet retailer grower
Precision AgQ&A: What BASF’s Latest Foray into Precision …
May 11, 2017
In late April, BASF agreed to acquire U.S. precision ag player ZedX, a leader in the development of agronomic weather, Read More
Pam Marrone
Crop InputsMarrone Bio Innovations Enters into Distribution Agreem…
May 11, 2017
Marrone Bio Innovations, Inc., a leading global provider of bio-based pest management and plant health products for the agriculture markets, Read More
Bayer
Crop InputsBayer to Sell Liberty Business to Seal Monsanto Deal
May 8, 2017
Bayer has agreed to sell its Liberty herbicide and LibertyLink-branded seeds businesses to win antitrust approval for its acquisition of Read More
Trump, Senate, Cabinet
LegislationTrump’s EPA Appointee Dismisses Half of Major Sci…
May 8, 2017
(Via NYTimes.com) EPA has dismissed at least five members of a major scientific review board, the latest signal of what Read More