Short description
The German company K+S manufactures potassium and salt, which explains the name Kali + Salz.
The Werra mine in Germany and the Bethune mine in Canada are the two main locations for extracting these raw materials. Additionally, there are other salt mines; salt is partly mined and partly extracted from saltwater.
The products from these mining activities, whether produced by K+S itself or by their customers, are used in chemicals, industry, food processing, animal feed, pharmaceuticals, water treatment, and de-icing salt.
However, our focus remains on the fertilizers they produce from potassium and salt. Potassium, along with nitrogen and phosphorus, is an essential component for plants. Potassium makes plants more resistant to extreme weather conditions and increases the efficiency of crops' water use.
In addition to the usual fertilizers, very specific applications have also been developed to meet particular needs, including those of organic farming.
Why we selected K+S
We picked K+S not just because it's super cheap, but also because there are some solid long-term arguments for the entire industry. For starters, arable land is becoming scarcer while the global population that needs to be fed is growing. This means we'll need to increase production per hectare, which translates to a higher demand for fertilizers.
What's more, their products are also used for water treatment. While water is abundant, drinkable water is in short supply.
Plants also need to become more resistant, and potassium plays a significant role in boosting that resistance.
Right now, demand for potassium is higher than the supply. And the one major project from BHP that was supposed to add significant new capacity by 2026 has already been delayed.