A group of Udon Thani's Iron Ladies shout "No Potash!", a phrase that has become their battle cry in a long struggle against a

proposed mine in their village.

This week’s reading questions are related to 2 short articles about a proposed Potash mine in Thailand

Read 2 short articles about a planned Potash mine in Thailand and submit answers to the following questions before the start of class on Monday 10/14.

The New Thai Capitalism: Development or Disaster? http://clpmag.org/article.php?article=The-New-Thai-Capitalism-Development-or-Disaster_162

The potash project: Thailand's first underground mine – Canadian Mining Journal (abridged version should be attached)

Questions:1) Who are the “Iron Ladies” and what is their mission? Do you think the age and gender of the “Iron Ladies” has affected the way Thai society, government officials and industry reps have responded to their protests? What if the protests were led by college students? or young male farmers?

2) Why did the mining company lobby for changes in Thailand's Mineral Act of 2002? What has the mining company done to address public skepticism about foreign owned companies?

3) Identify several potential negative environmental impacts of the proposed mining project.

4) What types of technologies does the mining company plan to employ to minimize negative environmental impacts?

5) What types of public benefits does the mining company claim will come about if the mine is developed? Do any of the villagers believe these claims?

6) Estimate the potential economic value (in US dollars) of the Udon potash reserves. Assume 500 million tons of potash ore with an average K2O content of 20% can be economically extracted. Assume a world price of $500 per ton of potash fertilizer containing 60% K2O.

7) How do the 2 articles differ in their tone? (Hint: compare words used to describe local opposition to the mine)? Do you think one article is more likely to be accurate or objective than the other? Explain.

8) How do you think members of your community would react if a mining company wanted to extract minerals from deep underneath your community and claimed that the mining would *not* significantly disrupt current land uses or harm the environment?

9) As far as I can tell, mining still has not begun in Udon and the Iron Ladies have remained unwavering in their opposition. What do you think will happen? Do you think a compromise is possible?

6) Estimate the potential economic value (in US dollars) of the Udon potash reserves.  Assume 500 million tons of potash ore with an average K2O content of 20% can be economically extracted. Assume a world price of $500 per ton of potash fertilizer containing 60% K2O.

Step 1 is to calculate the total amount of K2O that can be economically extracted:

500,000,000 tons of ore x 0.20 = 100,000,000 tons of K2O

Step 2 is to calculate the price per ton of K2O:

$500/(0.6 tons of K2O) = $833.33/ton of K2O

Step 3 is to calculate the value of 100 million tons of K2O:

100 million tons of K2O * $833.33/ton of K2O = ?????

Cartel capers: Belarus and RussiaThursday, October 10, 2013 by Alan Guebert

There are two reasons to keep up-to-speed on the fast pace of events in what would seem to be the very dull world of potash.

The first reason is that the key players in this once-tightly controlled market continue to lose their grip on it. According to analysts, prices for this key fertilizer will continue to drop—to nearly $300 per ton, say some—through the end of 2013. If they’re right, that’s more than $100 a ton less than a year ago and a gargantuan $600 to $700 per ton below the record price of five years ago. In short, go long on potash; it’s the best time in years to buy it and apply it.

The second reason to keep an eye on the potash market is that, in truth, you can’t take your eyes off of what is quickly turning into a Russian version of an American soap opera.

You may recall, nine weeks ago the Russian-Belarusian potash cartel, a rocky twosome composed of Russia’s Uralkali and Belarus’ Belaruskali, parted company when the Russians simply called their marriage off.

That was very bad news to Belarus. Together, the colluding neighbors mine and market about 40 percent of the potash used around the world. Their two biggest clients are the world’s two biggest potash buyers: China and India.

Potash isn’t just another commodity like wheat or iron ore. More than 70 percent of K production and, in turn, almost all of its prices and sales, are tightly controlled by two global cartels—the Russian-Belarusian venture (which goes by its initials, BPC) and Canpotex, a N. American powerhouse composed of Mosaic, Agrium and Potash Corp. of Saskatchewan.

As such, when any one of the five giants makes an unscripted move, the other 4 want to know why because billions of dollars rest on the explanation.

In late August, Uralkali’s CEO, Vladislav Baumgertner, traveled to Minsk to soothe the ruffled feathers of the big ducks at both Belaruskali and the Belarus government. The talks must have gone badly because when Baumgertner returned to the airport to fly back to Russia he was arrested, then jailed. Russia retaliated by cutting off pork exports to Belarus. Belarus got the message and released Baumgertner to “house arrest.”

Meanwhile, on Sept. 24, Russia upped the ante—and, in all likelihood, the future of the global cartel—when it was announced that Uralkali had sold a 12.5 percent stake of its business to China Investment Corp., a Chinese sovereign-wealth fund, for an estimated $2.03 billion.

Why is potassium represented by the symbol K ?

39K is the dominant isotope.40K (radioactive) and 41K (stable) are used as tracers.

In Latin and German, Kalium = Potassium

Element Total Exchangeable Solution

K 38,000 190 10-30

Ca 8000 2250 60-120

Mg 6000 450 10-20

N 3500 -na- 7-25

P 900 -na- 0.05-0.15

S 700 -na- 2-10

The total potassium content of most mid-west soils is high (often much higher than all other nutrients) but most of the K is locked up in minerals like

K feldspar that release K very slowly

Typical quantities of nutrients in Midwest farm soils (lbs/acre-plow layer)

Soil solutionK+

K+

K+

K+

K+ K+ K+K+

K+ K+ K+K+Trapped K

K

K K

K

Soil Minerals(feldspar, mica)

Soil Colloid

Illite clay

Illite clay

K

Unavailable (90 to 98%)

Slowly available (1 to 10%)

Readily available (0.1 to 2%)

Depth of loess cap

A loess cap covers about 2/3rds of IL

So where did all this potassium

come from?

K-rich primary minerals

Glacial outwash

http://www.archive.org/stream/potassiumfromsoi00hopk#page/n3/mode/2up

Cyril Hopkins wrote a ground-

breaking bulletin on

potassium in IL soils almost a

century ago.

Is this possible?

Luxury consumption

Important potassium concepts

No significant gaseous forms

3rd most likely (after N and P) to be plant limiting

Non-toxic at high concentrations

Does not promote eutrophication (unlike N and P)

Luxury consumption is common for many plants

Is additional uptake of K of no value just because it does not increase yield??

Role of potassium in plant nutritionRemains in ionic form inside plants

(rather than being incorporated into organic molecules)

Very important osmotic regulator (lowers water potential inside of plant cells)

Activator of over 80 enzymes

1-4% of plant dry matter (similar to N)

Important for tolerance of environmental and biotic stresses (drought tolerance, winter hardiness, resistance to fungal pathogens,

resistance to insects)

Important for crop quality (flavor, color, stem strength)

Necrotic leaf margins are associated with severe potassium deficiency

Uptake of K by plants requires an active root system, especially in the soil zone where plant-available K is located !!

When this soil zone is dry, uptake is limited. Anything that exerts additional stress or limits root growth--compacted soil layers, root pruning, side-wall smearing--

further reduces K uptake, especially when root growth is restricted in the zones of highest available K.

K deficiency symptoms can occur even when soil test K levels are high

Corn in conservation tillage systems are often first to

show K deficiency symptoms.

OLD maintenance rates of K2O for agronomic crops

*Based on approximately 1,500 corn seed samples representing 289 hybrids and 16 relative maturities and approximately 3,450 soybean seed samples representing 658 varieties and 36 maturity groups. Samples were collected between 2007 and 2011, with the great majority collected in 2009

The U of I recently updated its P and K #s for corn and soybeans.

OLD NEW

Crop Yield N P2O5 K2O

Bell Peppers 180 cwt 137 52 217

Cabbage 20 tons 130 35 130

Peas 25 cwt 164 35 105

Potatoes (white) 30,000 lb 90 48 158

Snap Beans 4 tons 138 33 163

Sweet Corn 90 cwt 140 47 136

Tomatoes 20 tons 120 40 160

Vegetable crops use a lot of potassium !

Many veggies use more K2O than N!

Average K2O application rates for fruit and vegetable crops in the US

The more highly weathered soils in southern IL tend to have low CECs. Pockets of sandy soils (grey shaded areas) in northern and central IL also have low CECs

Most soils in the “high” region shown on this slide have CECs > 12 meq / 100 g.

Most soils in the “low” region shown on this slide have CECs < 12 meq / 100 g.

The U of I recommends different K management strategies for low and high CEC soils.

1 centimol/kg = 1 meq/kg

Crop response to extractable K in low CEC soilsCrop response to extractable K in high CEC soils

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Iowa State’s updated K recommendations for corn and soybeans

How do you convert between ppm and lbs/acre?ppm* 2 = lbs per acre (assumes that a plow layer weighs 2 million lbs)

The U of Missouri and some other LGUs calculate critical soil test K levels as a function of CEC

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What Happens to Fertilizer K?

– 20 to 60% of applied K is absorbed by crop in year 1

– Highest recovery on low K soils

Available K SlowlyAvailable K Unavailable K

WHY?

Soil testing methods for potassium used by US labs in 2005

Traditional method

NH4+ exchanges with

K+ on soil colloids

Universal extractant

adopted by more labs every year

General rule of thumb:

4 lbs of K2O are required to raise soil test K by 1 lb

Soils with very low soil

test levels often require

more than 4:1

Soils with high soil test levels often require less

than 4:1

Annual application vs. build up and maintenance

ILLITE clay

Soil test K = 112 ppm

Banding often results in higher yields when soil test levels are low

Soil test K = 224 ppm

Banding is less likely to result in higher yields when soil test levels are high

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K fe

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high

medium

low

low high

Economic response to K fertilization is most likely when soil test K is low and K fertilizer is cheap relative to the price of corn.

Percentage of soils testing below K critical levels in 2010

Why are low K levels uncommon in most western states?

Why are K levels dropping in many states?

Does Cation Balance Matter?

The relative concentration of potassium, calcium, magnesium, ammonium, and other positively charged ions in the soil solution

influences their relative uptake.

Excessively high concentrations of one cation often results in inadequate uptake of other cations.

For example, very high concentrations of calcium reduce uptake of potassium and very high concentrations of potassium reduce

magnesium uptake.

Does Cation Balance Matter?

The relative concentration of potassium, calcium, magnesium, ammonium, and other positively charged ions in the soil solution

influences their relative uptake.

Excessively high concentrations of one cation often results in inadequate uptake of other cations.

For example, very high concentrations of calcium reduce uptake of potassium and very high concentrations of potassium reduce

magnesium uptake.

Does Cation Balance Matter?

The relative concentration of potassium, calcium, magnesium, ammonium, and other positively charged ions in the soil solution

influences their relative uptake.

Excessively high concentrations of one cation often results in inadequate uptake of other cations.

For example, very high concentrations of calcium reduce uptake of potassium and very high concentrations of potassium reduce

magnesium uptake.

Cation balance can impact animal health

http

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K fertilization often causes declines in the relative uptake of other cations

Research has shown that there is less risk of tetany when K:Na and K:Mg ratios in forages are between 10 and 20:1. The histogram on the right shows the greater risk of tetany

at K:Na ratios greater than 20:1

http://www.pda.org.uk/leaflets/6/no6-print.htm

It’s well documented that alfalfa will take-up K beyond its needs if high

levels of soil or applied K are available.  This is referred to as “luxury

consumption”. 

Soil test values for K fluctuate during the year

K is more available in wet soils

Antonio Mallarino, soil scientist at Iowa State University, believes the moist soil test is more accurate and he has spent the past decade validating that theory and developing a calibration for that data. “The moist soil test for potassium better predicts a fertilizer response in the field. Both tests (dry and wet) tell us potassium levels, but the moist is better at predicting a crop response,” Mallarino told DTN.

Mallarino pointed out that industry still likes the traditional dry test and hasn’t broadly adapted the wet test as an option. “Drying soil is commonly done by labs because it is considered a more practical sample handling procedure, and it standardizes soil moisture across all conditions. A new process is not an easy step when you are analyzing thousands of samples a year and still need to be competitive,” he added.

Howard Brown, ILGrowmark manager of agronomy services, agreed the moist test provides a more accurate potassium number. “But it is still a soil test and not yet calibrated beyond Iowa so more works needs to be done,” he said.

Material Chemical Formula

K 2 O Content %

potassium chloride KCl 60 sul-po-mag K 2 SO 4 2MgSO 4 20

potassium nitrate KNO 3 44

potassium sulfate K 2 SO 4 50

Potassium Fertilizers

“Potash” = muriate of potash = MOP = 0 - 0 - 60guaranteed analysis

Used in organic ag but also have value in conv. ag

What is the main form of K fertilizer used in the Midwest?

Potash ore is a mix of KCl, NaCl and other salts.The KCl is concentrated using a flotation process which

skims off the surface of a fluid suspension of finely crushed ore. This concentrate is further processed and screened. The resulting fertilizer material is ~ 95 percent MOP. It is reddish in color because iron impurities in the

ore are not removed in this process.

White potash is produced by a process of dissolution and recrystallization. Potash ore is dissolved under pressure in hot brine, and MOP is precipitated as the brine cools and

pressure reduces. The iron is removed in this process, and the resulting MOP fertilizer is white. White MOP is generally

at least 98 percent potassium chloride.

The chloride in MOP has negative effects on some

crops

Tobacco fertilized with MOP produces cured leaves with muddy

and uneven color with excessive hygroscopicity and poor burn.

MOP is salty stuff !

Global K fertilizer production and consumption

Total world production = 33 million metric tons of K2O in 2007

http://minerals.usgs.gov/minerals/pubs/commodity/potash/mcs-2008-potas.pdf

The US is highly dependent on imported potash

Will farmers in MI have access to cheaper K

fertilizer than IL farmers?

Canada has the largest potash reserves and also exports the most potash

Total global economic reserves ~ 8 billion metric tons

global annual consumption = ~ 70 million tons

PC is the world's largest fertilizer company #1 in potash, #3 in phosphate and #4 in nitrogen fertilizers

How much does K fertilizer cost this fall?

How much does K2O cost per lb if MOP costs $450/ton?

Potash prices dripped lower again last week, with the Gulf off $5 to $347.50 and Midwest wholesale charges down $2.50 to $382.50.Those costs suggest fair value around $485 at the retail level, but some dealers remain $25 below

that level, anticipating weaker prices ahead. Fundamentals continue to point at $430 for a retail bottom, though it might take into winter to get there. Fertilizer companies aren’t even trying to jawbone prices higher yet, saying it could take

until winter to turn the market around.