Fertiliser Minerals: A New Focus in Global Food Security Amid Ukraine Conflict

The Ukraine war has amplified the importance of fertiliser minerals, such as potash and phosphate rock, in discussions on global food security. After Russia invaded Ukraine, these minerals witnessed a surge in prices, prompting the US to consider listing them as critical minerals. As a response to global concerns on food security linked to dependency on Russian and Chinese mineral sources, some major western mining firms have diversified into fertiliser production. BHP, the world’s top mining company, has initiated a $5.7bn potash mining project in Canada, while Anglo American is set to start producing a potassium-rich fertiliser called polyhalite in England from 2027. Historically, crop nutrient prices showed little correlation with other mined commodities, but this might change as the global population grows and requires more efficient food production. Despite the recent fall in potash prices due to increased supplies from Russia and Belarus, the long-term demand trend remains upward. The global shift towards electric vehicles is also expected to influence the demand for phosphate rock, an essential component in certain electric vehicle batteries. The future of fertiliser mining may also be shaped by potential government policies recognizing them as critical minerals, leading to possible tax incentives and subsidies.