Anglo’s polyhalite entry likely to hit MoP more than SoP – Danakali
JOHANNESBURG (miningweekly.com) – The proposed entry of Anglo American into the fertiliser industry is more likely to impact the muriate of potash (MoP) market than the sulphur of potash (SoP) market, says Danakali CEO Niels Wage. Having worked for 13-and-a-half years looking after the market for the Jansen development in Saskatchewan, Wage now heads the Sydney- and London-listed Danakali company, which is developing the Colluli SoP project in Eritrea, where it is in 50:50 joint venture with the State-owned Eritrean National Mining Corporation. The multi-nutrient polyhalite-based Poly4 product that Anglo is setting out to acquire from Sirius is currently on the lowest rung of the price ladder when compared with MoP and SoP. But it is also at the lowest end of the cost curve. Global demand for MoP is between 65-million tonnes and 70-million tonnes a year and global demand for SoP is some seven-million tonnes a year. SoP sells at $500/t, MoP at $275/t and Poly4, when the prices of individual polyhalite elements are combined into a single basket price, at $200/t.