Michigan Potash and Salt Company LLC (MPSC) on April 5 announced the execution of an offtake agreement with a major U.S.-based agricultural company to distribute 100 percent of the first phase potash fertilizer production at its proposed mine near Evart, Mich. The partnering company was not identified by name.
Under the agreement, MPSC and the company will provide U.S. farmers with 650,000 mt/y of potash from the mine, which MPSC said is in the final stages of financing for construction. The partnering company was not identified by name, but MPSC described the offtaker as a “supply chain leader in the production, processing, and global movement of the world’s food.”
“By partnering with an agricultural industry leader, Michigan Potash will help satisfy farmer requirements for potash as world supplies are unaffordable or utterly unavailable,” said Ted Pagano, Founder and CEO of Michigan Potash. “Together, we will create a new, complementary production, logistical, and sales powerhouse by supplying Michigan White Potash to the American farmer.”
MPSC plans to use solution mining to initially produce 650,000 mt/y of potash and 780,000 mt/y of salt, eventually ramping up to 1 million mt/y and 1.2 million mt/y, respectively. MPSC reported earlier that full production of domestic potash from the facility is expected for 2025 (GM March 11, p. 29).
MPSC said production from its mine at full buildout could replace the 1 million st/y of potash currently imported into the U.S. from Russia. “With foreign potash supply dramatically impacted by war, sanctions, tariffs, rail, and production challenges, MPSC represents a new, reliable, domestic source for U.S. producers,” said Ward Forquer, Vice President of Potash Markets.
MPSC said the Evart mine would create more than 300 union construction jobs over a three-year period and more than 180 fulltime operations positions. “The U.S. Potash Project represents over a $1 billion capital investment on a 150+ year resource base – making it one of the largest union-supported economic development projects in the country,” the company said.