Detailed independent studies and direct engagement with the fertilizer market over the last five years has confirmed the significant market opportunity for bulk high quality multi-nutrient fertilizers like the Company’s POLY4 product. The Company has developed a multi-channel global sales strategy and the size of the market opportunity can be framed in three key areas:
There is a well established market demand for the component nutrients contained in polyhalite that is currently supplied by a wide range of fertilizer products.
The Company’s initial market penetration strategy is to make POLY4 widely available at competitive prices to comparable products. There are multiple substitution opportunities for POLY4 and the potential aggregate substitution market for polyhalite could be more than 300 Mtpa, which is well in excess of the Project’s production capacity.
The Company has identified multiple market growth opportunities for POLY4 including its suitability for use on crops that are sensitive to chloride, and its potential to address the increasingly recognised problem that vast areas of farmland are deficient in sulphur and magnesium.
The fertilizer market currently lacks a low-cost chloride potassium on a large-scale and there is an opportunity for POLY4 to fill this void.
POLY4 is low in chlorides. Currently 32% of potassium used in the world is used on chloride-sensitive crops. However, only 9% of the world’s potassium supply is currently chloride-free. This represents an incremental opportunity of circa 70 Mtpa for low-chloride fertilizers such as POLY4.
POLY4 has a sulphur content of 19% and the Sulphur Institute estimates that the world plant nutrient sulphur deficit could require an incremental annual application of 60 Mtpa of polyhalite equivalent sulphur in order to address the imbalance.
In addition, a number of key agricultural regions are magnesium deficient, thereby representing further market growth opportunities for POLY4.
NPK fertilizers contain nitrogen (N), phosphorous (P) and potassium (K) and are an efficient carrier and delivery vehicle of a blend of nutrients. Customers are continually searching for ways to incorporate more nutrients into blends, making POLY4 and its four macro-nutrients a promising product to service this market.
An NPK fertilizer blend using POLY4 has all six key macro nutrients required for crop growth, as well as valuable micro-nutrients. The Company’s crop study programme has shown that POLY4 improves nutrient uptake for macro-nutrients by up to 95%.
Using POLY4 as a feedstock into NPK’s allows producers/blenders the opportunity to improve the efficiency of their operations by reducing the number of inputs they require.
POLY4 is able to supply part or full replacement of leading NPK inputs making it a valuable feedstock for multi nutrient NPK+ production.