Thai govt seeks Saudi investment to revive stalled potash mining projects
With Thailand’s three concessionaires facing setbacks in starting their potash mining projects, the government is exploring collaboration with Saudi fertiliser manufacturers to expedite the initiative.
Prime Minister Srettha Thavisin recently instructed the Industry Ministry to speed up potash mining projects after the concessionaires failed to kick off their mining operations despite holding concessions for many years.
Srettha noted that one of them has held the rights for eight years without progress, while the other two appear to have difficulties in securing funds for mining operations.
Meanwhile, Deputy Industry Minister Pimpatra Wichaikul told Krungthep Thurakij recently that her ministry had invited Saudi investors interested in potash mining to visit Thailand next month to assess the prospects.
The current potash mining concessions were given to three companies after their environment impact assessment studies had been approved by the Policy and Planning Office of the Natural Resources and Environment Ministry.
The concessionaires are:
• Asean Potash Chaiyaphum Plc: It is allowed to mine in Chaiyaphum’s Bamnet Narong district
• Asia Pacific Potash Corporation: It is allowed to mine in Udon Thani
• Thai Kali Co Ltd: It is allowed to mine in Nakhon Ratchasima’s Dan Khunthod district.
A reliable source from the Industry Ministry revealed that Thailand is believed to possess the fourth-largest potash reserves globally, approximately 100 billion tonnes, after Canada, Belarus and Germany.
Two areas in Thailand are richest in potash, namely:
• Sakhon Nakhon Basin, encompassing Sakhon Nakhon, Nong Khai, Udon Thani and Nakhon Phanom provinces
• Korat Basin, covering Khon Kaen, Kalasin, Mahasarakham, Roi Et, Yasothon, Ubon Ratchathani, Si Sa Ket, Nakhon Ratchasima and Chiayaphum
Fertiliser shortages during the Covid-19 pandemic pushed up the prices to unprecedented levels, prompting Srettha to call for the concessionaires to speed up their operations. If the current concession holders continue facing challenges with funding, the Industry Ministry may consider issuing concessions to new firms.
Pimpatra said Saudi Arabia had expressed interest in Thailand’s potash mining projects while she was attending the Future Minerals Forum in Riyadh from January 9 to 11.
She said she briefed the Saudi industry minister about potash mining in Thailand, as well as the estimated amount of the mineral and by-products from mining.
She said Saudi Arabia was very interested in mining for potash in Thailand to complement its own urea mines.
Potash is a key ingredient for making fertiliser because it is the third major plant nutrient after nitrogen and phosphorus.
“Saudi authorities asked a lot of questions, including the expected potash reserves and by-products of mining,” Pimpatra said. “Thailand will be happy if Saudi Arabia invests in potash mining.”
She added that Saudi Arabia could use Thailand as a base for making fertiliser to export to other Southeast Asian nations.
The minister added that since Saudi already exports nitrogen and phosphorus, it could use potash produced in Thailand to strengthen and complement its fertiliser industry.
