Canada Potash Corporation (“CPC”) is a resource-based potash mining company engaged in the exploration and development of potash mineral properties in Saskatchewan, Canada. The company’s headquarter is in Saskatoon, Canada, and has an operating office in Vancouver, Canada and representative offices in Beijing, Shanghai and Hong Kong in China.
CPC owns 8 Subsurface Mineral Permits covering approximately 2,430 km² of land in the world’s largest Commercial Potash Mining Belt in Saskatchewan, Canada. This Potash Mining Belt is flat lying with rich potash reserves and has good continuity. It typically occurs at a depth of less than 1,100m, facilitating cost-effective underground mining. The ore’s grade is relatively high ranging from 20‐35% K2O compared to areas of Europe and Mexico, where K2O grades are 19% on average, making it possible to economically extract viable potash quantities from relatively limited hectares of land.
Potash is a critical ingredient that helps to improve crop yields, increase resistance to plant diseases and heighten water retention. With the rapid growth of population and development of economy，the world’s agriculture production and crop yield have reduced because of cultivated land decrease, water shortage and natural disasters, thus more potash is needed to improve the crop yield.
China is one of the largest potash consuming countries in the world. In 2014, China had a potash demand of 12 million tons, its potash import (KCI) was over 7.7 million tons. China’s potash import volume will remain 40% – 50% of its total demand in the future. In China, the cultivated area with potassium deficiency is as large as 450 million mu (30 hectares); China’s demand for potash will grow continually with a rate of 5% – 6% each year.
CPC aims to produce potash in Saskatchewan, Canada and ship the potash products to Chinese and other Asian markets. The Company’s goal is to establish a national brand of potash and compound fertilizers within the next 5 to 10 years and to become a major potash and compound fertilizer producer in China.