DIg Deeper into the
Business of Potash

here are the basics:

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Potash Basics

Potash is a vital and replenishing agriculture fertilizer used worldwide to grow healthy crops

Potash is also used to make industrial products and pharmaceuticals

Canada has the largest and richest potash resources on the globe, and could supply the needs of farmers worldwide for several hundred years

Canada has approximately half the world’s potash reserves

How it's Mined & Processed

Step 1

Potash is brought to the surface from about a kilometre underground either as a solid or dissolved in liquid form

Step 2

It’s processed in mills to separate out the “K” (potassium)

Step 3

Further processed into various sizes and types of products.

Step 4

From here, it’s stored in large warehouses for shipping where it will be later loaded into train cars

The Canadian Potash Industry

There are 3 companies producing and selling potash in Canada as well as 2 greenfield projects in various stages in Saskatchewan

New Potash Projects (As of 2025)

Canada

There are 2 potash projects under development in Canada.

Russia/Belarus

There are 7 projects underway in Russia and Belarus.

Laos

There are 2 projects being developed in Laos.

Global Players Outside Canada

Russia

Exporters: Uralkali and Eurochem

Belarus

Exporters: Belaruskali

Israel

Exporters: ICL

Chile

Exporters: SQM

China

Laos*

Exporters: Lao Kaiyuan and Asia-Potash

*Chinese-owned

Global Potash Production

Potash Production by Company

Based on 2024 Actuals & Estimates

Where Canadian Potash Goes

95% is exported out of Canada Major markets: US, China, Brazil and India; 40 countries world-wide

Potash is moved by train and relies on the services of CN and CP Rail

Potash is transported both by the producers themselves and for some, through Canpotex (a joint venture owned by Mosaic and Nutrien)

Canpotex markets and delivers Canadian potash through their fleet of 5,000 customized railcars to port terminal facilities in Portland, Oregon, Saint John and Vancouver

The three main producers own or lease specialized railcars to move product through their own supply chains

Rail cars are emptied into large containers and put on ocean-going vessels for global shipments

Journey of a Rail Car of Potash

Step 1

Each rail car carries 100 MT of potash (based on weight).

Step 2

Once filled in Canada, cars move by rail to main hubs like Winnipeg or Chicago for domestic transport.

Step 3

International cars head to ports on the East or West coast.

Step 4

For Canpotex, it takes around a week to move potash from Saskatchewan to the coast.

Step 5

Domestically, it can take over a month to get potash to its final destination by rail-only.

The Cost to Produce Potash

Companies producing potash in Canada have the highest business costs in the world

New, unexpected costs can’t be passed along to the end user

Like any business or industry, companies selling Canadian potash are trying to lower costs to stay competitive

Cost Per Tonne

1 British ton (long ton) = 1,016 kg or 2,240 lbs
1 U.S. ton (short ton) = 907 kg or 2,000 lbs

Typically the cost of potash is calculated as the cost it takes to create one tonne of potash

Costs Included

Labour
Materials
Power and utilities
Natural gas
Freight
Royalties and mineral rights
Potash Production Tax
Depreciation and amortization of things like equipment and buildings

In comparison to a Russian producer shipping overseas

Transportation Costs

Canadian potash has to move to either coast to get to global markets

It costs significantly more for Canadian producers to move potash to ports on the east coast or in the US than for global producers to ship potash into North America.

Canadian Potash Tax Treatment

Crown Royalty Tax

Crown Royalty tax is paid to the Crown for removing the mineral and selling it. Calculated as value of potash produced (average selling price) x 3%

Potash Taxes

Base – producers estimate how much potash they will make in a year x 35% to a maximum and minimum; there are deductions available to incentivize new mine research and development along with market development to grow the industry – paid monthly

Profit tax – producers estimate how much they will make in a year x 15% or 35% (based on amount sold in a year); there are deductions to encourage companies to build or expand mines, create corporate office positions, and do market/research development – paid quarterly

Resource Surcharge tax – calculated as 3% of all third-party revenue sales of Canadian Potash.

Other Taxes

Potash base tax, potash profit tax, resource surcharge tax, provincial and federal income taxes, provincial and federal sales taxes, property taxes and carbon taxes (both direct and indirect).

Tax Burden

It’s estimated that Russian potash companies pay 43% less as a percentage of operating earnings

We know taxes and costs will increase and change over time — that’s a given

It’s important for regulators to consider the collective impact many changes in different places have on overall cost compared to the competition

The goal should be to maximize the earning potential of the industry so Canadian producers are selling their potash and making more profit, so everyone’s share grows exponentially

Less Canadian potash mined, produced and sold = less royalties, production and profit tax

Priced to Sell

Commodity

Potash is considered a commodity, meaning it is interchangeable with commodities of the same type and is used as an input to produce other goods – like crops that are used for food

Negotiations

Potash companies around the world negotiate with buyers to set volumes and prices for potash, based on the current market conditions

Contracts

Each growing cycle comes with contract negotiations with the largest world importers like China and India

Pricing

The price of potash is set by the market not the seller and is based on what a customer needs at that time with what’s most readily available

Price Factors

Price is Based Per TOnne

Supply:

how much is available

Demand:

how much is needed

Growing season and weather

Farmer disposable income

Government subsidies

Currency exchange rates

Tariffs and trade wars

Potassium Chloride Prices

Vancouver F.O.B, standard, monthly, 2009 – 2025

Time to Dig Deeper

Get a better understanding of the basic business fundamentals of the potash industry.

Why It All Matters

Potash plays a major role in our economy. The facts are compelling. Dig in.

DIg Deeper into the Business of Potash

Potash Basics

Potash is a vital and replenishing agriculture fertilizer used worldwide to grow healthy crops

Potash is also used to make industrial products and pharmaceuticals

Canada has the largest and richest potash resources on the globe, and could supply the needs of farmers worldwide for several hundred years

Canada has approximately half the world’s potash reserves

How it's Mined & Processed

Step 1

Step 2

Step 3

Step 4

The Canadian Potash Industry

There are 3 companies producing and selling potash in Canada as well as 2 greenfield projects in various stages in Saskatchewan

New Potash Projects (As of 2025)

Canada

Russia/Belarus

Laos

Global Players Outside Canada

Russia

Belarus

Israel

Chile

China

Laos*

Global Potash Production

Potash Production by Company

Where Canadian Potash Goes

Journey of a Rail Car of Potash

Step 1

Step 2

Step 3

Step 4

Step 5

The Cost to Produce Potash

Companies producing potash in Canada have the highest business costs in the world New, unexpected costs can’t be passed along to the end user Like any business or industry, companies selling Canadian potash are trying to lower costs to stay competitive

Cost Per Tonne

1 British ton (long ton) = 1,016 kg or 2,240 lbs 1 U.S. ton (short ton) = 907 kg or 2,000 lbs

Typically the cost of potash is calculated as the cost it takes to create one tonne of potash

Costs Included

In comparison to a Russian producer shipping overseas

Transportation Costs

Canadian potash has to move to either coast to get to global markets It costs significantly more for Canadian producers to move potash to ports on the east coast or in the US than for global producers to ship potash into North America.

Canadian Potash Tax Treatment

Tax Burden

It’s estimated that Russian potash companies pay 43% less as a percentage of operating earnings

We know taxes and costs will increase and change over time — that’s a given

It’s important for regulators to consider the collective impact many changes in different places have on overall cost compared to the competition

The goal should be to maximize the earning potential of the industry so Canadian producers are selling their potash and making more profit, so everyone’s share grows exponentially

Less Canadian potash mined, produced and sold = less royalties, production and profit tax

Priced to Sell

Commodity

Potash is considered a commodity, meaning it is interchangeable with commodities of the same type and is used as an input to produce other goods – like crops that are used for food

Negotiations

Potash companies around the world negotiate with buyers to set volumes and prices for potash, based on the current market conditions

Contracts

Each growing cycle comes with contract negotiations with the largest world importers like China and India

Pricing

The price of potash is set by the market not the seller and is based on what a customer needs at that time with what’s most readily available

Price Factors

Price is Based Per TOnne

Potassium Chloride Prices

Vancouver F.O.B, standard, monthly, 2009 – 2025

Time to Dig Deeper

Why It All Matters

DIg Deeper into the
Business of Potash

Companies producing potash in Canada have the highest business costs in the world

New, unexpected costs can’t be passed along to the end user

Like any business or industry, companies selling Canadian potash are trying to lower costs to stay competitive

1 British ton (long ton) = 1,016 kg or 2,240 lbs
1 U.S. ton (short ton) = 907 kg or 2,000 lbs

Canadian potash has to move to either coast to get to global markets

It costs significantly more for Canadian producers to move potash to ports on the east coast or in the US than for global producers to ship potash into North America.