th Congress of the United States of America Before the 113 th Congress of the United States of America Before the 113 Subcommittee on Energy and Mineral Resources H.R. 5066 (Congressman Benishek) The Data Preservation Act of 2014 September 17 th 2014 M ICHIGAN P OTASH C OMPANY, LLC M ICHIGAN P OTASH C OMPANY, LLC People. Providing. Strengthening. Securing.
Potash is a natural potassium fertilizer, Potash is a natural potassium fertilizer, and the tightest controlled commodity in the world. and the tightest controlled commodity in the world. 39.098 19 K Potash is an essential plant nutrient and nutritional requirement for animals and humans. It has no known substitutes. Potassium Although potash is used worldwide, only 13 countries and only 13 companies K P produce it. N Potassium, Nitrogen, and Phosphorus, the three major elements required for Amongst comparative world commodities, plant growth. potash is the most tightly controlled. Our farmer’s rely on potash to grow our food and they pay more for potash than anybody else in the world. Soybeans with and without the application of MPC MPC Potash. Source: Potash and Phosphate Institute, USGS Slide 2 Slide 2
U.S. Potash import reliance increases year over year. U.S. Potash import reliance increases year over year. 8,000 $800 U.S. potash Potash Price ($/ton) US Consumption (Mton) US Production (Mton) production has 7,000 $700 declined by 65% 6,100 since 1962. 6,000 $600 U.S. potash demand 5,000 $500 has increased by 195% since 1962. 4,000 $400 U.S. potash price has increased 1000% 3,000 $300 since 1962. 2,000 $200 U.S. potash import reliance is 85% 1,000 $100 annually, and may be 350 as high as 95% by 0 $0 2030. 1950 1953 1956 1959 1962 1965 1968 1971 1974 1977 1980 1983 1986 1989 1992 1995 1998 2001 2004 2007 2010 2013 2016 2019 2022 2025 2028 2031 2034 2037 2040 *Source: USGS, in Metric Tons K2O Equivalent MPC MPC Slide 3 Slide 3
Potash is critical to agricultural balance of trade Potash is critical to agricultural balance of trade The U.S. produces 40% of the world’s maize and 36% of the world’s soybeans. These crops are among the highest potash consuming cash crops. 1989 The U.S.’ agricultural trade balance relies heavily on 1960 potash-dependent crops. Domestic potash supply 1931 principally comes from the Designated Potash Area in New Mexico; established in 1939, it has become critically depleted. US Potash Production Location and date of commercial production *Source: USGS, in Metric Tons K2O Equivalent8 MPC MPC Slide 4 Slide 4
In 2008 MGRRE rescued over $200 Million dollars in core In 2008 MGRRE rescued over $200 Million dollars in core H.R. 5066 (Representative Benishek) Dr. William B. Harrison III, Professor Emeritus Founder and Director Michigan Geological Repository for Research and Education Western Michigan University Magazine, Summer 2014 September 17th 2014
The word’ ’s highest grade potash ore is in the U.S. Corn Belt s highest grade potash ore is in the U.S. Corn Belt The word For thirty years, the quality and quantity of the world’s youngest commercial potash discovery was kept a secret. Canadian Ore (Left) vs. Michigan Ore (Right) A beneficiary of the ‘Data Preservation Act of 2005’, enabled the re-discovery of a critical mineral reserve. Enough to Double U.S. output for 150 years. MPC MPC Slide 6 Slide 6
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