The Industry Ministry will continue to promote potash mining in Thailand to meet rising demand from the fertiliser industry and reduce imports, says Industry Minister Atchaka Sibunruang.
She said demand for potash, a major element in producing fertiliser, is growing along with rising demand for crops as populations increase. The growth of biofuel crops has also created an additional need for potash, said Ms Atchaka.
The move to promote potash mines is expected to help reduce imports of the crop nutrient by at least 9 billion baht a year, she said.
The Food and Agriculture Organization of the UN said world potash demand is forecast to rise to 38.7 million tonnes in 2018, up from 34.9 million in 2014. Of the total, 56% of the demand growth is in Asia, 27% is in the Americas, 11% in Europe, 6% is in Africa and 0.4% is in Oceania.
On the supply side, global production is expected to be 51.4 million tonnes, with major producers in the Americas and Europe each claiming production capacity of 17 million tonnes. Asia is expected to produce 8.5 million tonnes.
The Asean region imports around 4.5 million tonnes a year, of which 470,000 tonnes are from Thailand.
Thailand has the potential to produce up to 2 million tonnes of potash a year, allowing it to export to other Asean countries, said Ms Atchaka.
"The government expects more potash mines would help reduce imports of fertiliser. Thailand has several major potash basins that can be dug up to create added value for the country," she said.
Thailand has total potash deposit basins covering 17,000 square kilometres in Nakhon Ratchasima and Sakon Nakhon.
Recently the Industry Ministry granted two concessions to two potash miners. One was for Asean Potash Mining Co with an investment value of 45 billion baht and another was for Thai Kali Co with an investment budget of 3 billion.
Chat Hongtiamchant, director-general of the Industry Ministry's Department of Primary Industries and Mines, said 39 mining companies have applied for concessions to operate a business in Thailand. Of the total, six are under ministry consideration.
"We have not approved any concessions yet as some companies have conflicts with villagers. The government has to spend a long period of time creating an appropriate understanding between the miner and the villagers before taking any action," he said.
Potash mining creates by-products such as sodium that are used in paper, waste management and detergent.