“In 2010, the world potash markets recovered from the economic downturn, with consumption and production returning to levels seen before 2008,” notes the U.S. Geological Survey (USGS) 2010 Minerals Yearbook on Potash, produced in July 2012.

While the majority of potash used in the United States continues to be imported, according to the USGS, domestic production is increasing.

“Domestic production increased by 29 percent to 930,000 metric tons potassium oxide in 2010 from 720,000 in 2009. U.S. sales of potash increased by nearly 60 percent from that of 2009; and apparent consumption more than doubled to 5.6 million metric tons in 2010 from 2.5 million metric tons in 2009. World production of potash increased by 64 percent from that of 2009,” the report states.

States topping the production list included New Mexico, Michigan and Utah, with additional mines planned in New Mexico. According to the USGS, about 75 percent of current U.S. production is in New Mexico.

Momentum gained in 2010 in potash production and sales is expected to continue. The report notes, “World potash production and consumption are projected to continue to recover from the economic downturn that lasted into 2009. According to the International Fertilizer Industry Association, potash production was projected to increase in 2011 by seven percent from that of 2010 and by an additional three percent in 2012.” It also states, “Potash exploration and development is expected to remain very active during the next decade. …Increasing world population and its need for food will require continued increases in both potash production and consumption.”

According to the USGS Mineral Commodity Summary produced in January 2012, the United States ranked eighth worldwide in potash production, and has the seventh largest estimated reserves. Countries leading the way in potash production include Canada, Russia, Belarus, China, Germany, Israel and Jordan. Major producers that ranked behind the U.S. in 2010 production rates included Brazil, Chile, Spain and the United Kingdom.

Potash production in the United States has remained fairly steady over the last five years, according to the USGS, with the exception of 2009. In both 2007 and 2008, 1.1 million metric tons of marketable potash was produced. In 2009, that number dropped to 720,000. It recovered in 2010, increasing to 930,000, and was estimated to have reached 2007 levels again in 2011, with 1.1 million metric tons produced.

Consumption of potash in the United States was much higher than the amount produced. Reported consumption was 5.9 million metric tons in 2007, 6.7 million in 2008, 2.6 million in 2009, 5.4 million in 2010, and an estimated 6.5 million in 2011.

The USGS notes that within the U.S., most potash is used for fertilizer.

“The fertilizer industry used about 85 percent of U.S. potash sales, and the chemical industry used the remainder,” the commodity summary notes.

In addition to fertilizer, potash is used in aluminum recycling, electroplating, oil-well drilling, water softening, cement, soap, food products, textiles, rubber manufacturing and beer brewing, according to the USGS. The USGS also notes that as a fertilizer, there are no cost effective substitutes for potash.

The Holbrook Basin is currently being explored for potash mining potential by several companies. Both American West Potash and Passport Potash have announced that test drillings in the basin have revealed quantities available suitable for mining. Additional testing and investments in potential potash reserves continue in the area, with hopes that a mine or mines will be opened within the next few years.