Sulphate of Potash (SOP or K2SO4) is a superior priced fertilizer product that is used in the production of high-value, chlorine sensitive crops such as fruits, vegetables, nuts, beans, cocoa, and the emerging market of organic cannabis production. SOP is preferable to the more abundant form of potash, Muriate of Potash (MOP or KCl), because of its low chloride content and high plant-available sulphate sulphur content. Furthermore, SOP enhances plant health, increases yields, fights disease, and significantly improves the flavour, colour and longevity of the crop.
SOP is currently in high demand with limited supply. Because of growing demand for specialty and chlorine-sensitive crops as well as increasing concerns about sulphur deficient soils within the agriculture sector, it is forecasted that demand for SOP will continue to grow and the market will become increasingly undersupplied.
SOP Production Processes
SOP is produced by three main processes
Primary salt lake brine processing through evaporation and purification
- Lowest cost SOP production
- Natural, environmentally-friendly process
- Only source of water-soluble, certified organic SOP
- Method currently used by only 4 large-scale operations in the world
Secondary process of reacting MOP with sulfate salts
- Accounts for 25-30% of global SOP supplies
Mannheim process of reacting MOP with sulfuric acid
- Accounts for approximately 50% of global SOP supplies
Organimax is targeting the deep brine aquifers at its project in Zacatecas and San Luis Potosi, Mexico for the potential of future PRIMARY SOP production. This represents the lowest cost SOP production worldwide.
Global SOP market is approximately 6 Mtpa and is valued at approximately US$4B pa.
SOP has a price premium of approximately 300% over the more abundant MOP market. This premium is influenced by high-value crop economics and higher production costs of secondary SOP resources relative to MOP production. Price growth for SOP is anticipated to continue due to less arable land, stronger demand for higher crop yields, and a significant change in diets leading to stronger demand for organic food worldwide.
Mexico does not have a domestic source of potash fertilizer despite a strong agricultural industry and its proximity to USA, one of the largest SOP importers in the world. This creates an impressive opportunity for Organimax and it has already received strong interest about its project from the Government of Mexico. Organimax’s project is conveniently located in a mining friendly jurisdiction with good infrastructure and a strong need for domestically sourced SOP.