Potash Stock Expected to Continue Rising
Potash stock has been rising steadily over the past few years and it is expected to continue to climb. Investors are watching the stock as potash revenue has more than doubled over the past year. With all the excitement on the stock market over the mineral, many people are asking what is potash. Let us look at a few facts about the mineral and why it is in such high demand.
Ancient people used to leach the ashes of land and sea plants in order to produce potash and used it to make soap, glass, and to bleach textiles. The leaching process left a white ash in the pot, thus the name now used to describe potassium salt and potassium carbonate. Large deposits of potassium have been found to exist hundreds of feet beneath the ground where ancient seas once existed. As the water from the sea evaporated, the salt settled to the bottom and created the beds which were then covered over thousands of years by soil.
People through the 1800\’s and early 1900\’s continued to produce potash by burning the trees they cut down to clear farm land. In the 1860\’s potassium deposits were found in Germany and mining began. Germany did become the leading producer of the mineral until their exports were restricted after World War I.
Potassium is used extensively by the farming industry. It protects crops from disease, pests, extreme temperatures, and adds important nutrients to the soil. It also contributes to building stronger plant stems and roots. Arable land is on the decrease while the global population continues to rise dramatically. The need to feed the worlds population makes fertilizer extremely important. So much so, that 95% of all the potassium mineral mined is used for fertilizer.
In addition to farming, there are other industries that need potassium minerals. It is used in brewing beer, added to water as a softener, used in manufacturing soap, glass, fireworks, and used in fire extinguishers. The textile industry uses it as a bleaching and disinfectant agent, it is used for snow and ice melting, and in aluminum recycling.
In India the fertilizer is vital to their crop production where they already have pressure put on their food supply. Brazil has increased their demand due to globally supplying soybeans, sugar cane, corn, and other crops to the world. North America expects to continue having above average crop yields and need more fertilizer. Asia also requires more fertilizer to meet the special nutrient requirements that go with raising rice, in addition to still provide the world with oil palm, rubber, and sugar cane.
The demand for the mineral is growing which is why investing in this stock continues to bring strong returns. For the year of 2011, the expected gross margin is in the range of $2.8 – $3.1 billion. That number is expected to rise over the years due to the industries search for lower cost methods in producing the mineral. Investment dividends are expected to be higher as a result.
Global population growth and the decrease of farmland available is going to continue creating a heavy demand for fertilizer. Worldwide market demands for soybeans, corn, and grains for human consumption and animal feed is going to remain strong. Producers of the potassium minerals are working to keep up with the demand making potash stock a good investment.
Find out why Potash Stock is essential to boosting the world\’s food production, and why efficient mining solutions are key.
Find out why Potash is essential to boosting the world\’s food production, and why efficient mining solutions are key.
http://www.westernpotash.com/
Author Bio: Find out why Potash Stock is essential to boosting the world\’s food production, and why efficient mining solutions are key.
Category: Business
Keywords: potash, potash stock, mining, minerals, business