SIC 1474 Potash, Soda, and Borate Minerals

Contenidos

• NAICS CODE(S).
• FURTHER READING.

SIC 1474

This category covers establishments primarily engaged in mining, milling, or otherwise preparing natural potassium, sodium, or boron compounds. Establishments primarily engaged in mining common salt are classified in SIC 1479: Chemical and Fertilizer Mineral Mining, Not Elsewhere Classified.

NAICS CODE(S)

212391

Potash, Soda, and Borate Mineral Mining

In 2003 the majority of potash production took place in New Mexico, where three mines were in operation. Michigan and Utah also had potash production facilities. In the 2003 crop year, about 1.1 million metric tons of potash were produced in the United States, down from 1.2 million metric tons the previous year. The fertilizer industry accounted for about 85 percent of U.S. potash sales, and the chemical industry used about 15 percent. Roughly 60 percent of the potash extracted in 2003 was produced as potassium chloride, with potassium sulfate and potassium magnesium sulfate—both for fertilizing certain crops and soils—representing the remainder of potash production. Of the world's potash reserves, the largest percentage was located in Canada and Russia. Canada accounted for 93 percent of U.S. potash imports, which totaled 4.5 million metric tons in 2003. The United States relied on imports for roughly 80 percent of its total consumption.

As a fertilizer, potash was used for such crops as soybeans, tobacco, potatoes, sugar beets, and corn, and the potash mining industry was thus subject to the seasonal fluctuations of the agricultural market. Before the Civil War, U.S. production of potash involved removing it from wood ashes through a leaching process. In 1916 potash began to be extracted through crystallization from saltwater lake brines in southern California, and later potash was mined from deposits discovered in New Mexico, which became the primary source of domestic potash in the United States. Following the oil crisis of 1979, demand for potash in developed nations declined, but in 1986 began a steady climb of 140,000 short tons a year.

By the 1990s the world's potash markets were in oversupply, and in the late 1990s and early 2000s, potash producers were forced to operate at reduced capacity. In addition, potash production was affected by economic crises afflicting Asia, as demand from Asia for imported grains declined. In fact Potash consumption in Asia was expected to decline 9 percent in 2003. Based on data from the U.S. Geological...