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Sage Potash received a $14 million grant from the U.S. Department of Agriculture for the Sage Plain Potash project
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Release time：2025-09-05
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The project is located in the Paradox Basin, Utah, with the goal of producing 300,000 tons of potash fertilizer annually.
Sage Potash, headquartered in Canada, has received a $14 million (CAD 19.32 million) grant from the United States Department of Agriculture (USDA) to advance its Sage Plain Potash project located in the western United States. This potash fertilizer asset is situated in the Paradox Basin of Utah. The funding is provided by the company's affiliate, Sage Potash (USA). This funding constitutes a significant part of the project's financial support, which aims to produce 300,000 tons of potash fertilizer annually. The USDA approved this grant under its Fertilizer Production Expansion Program, which aims to increase the production and supply of fertilizers within the United States. This grant aligns with initiatives to strengthen domestic potash fertilizer production. Potash fertilizer is an essential nutrient for plant growth and a key component in ensuring global food security. Currently, over 90% of potash fertilizer in the U.S. is imported from regions such as Canada, the former Soviet Union, and the Middle East.
Sage Potash stated that it is advancing the necessary permitting processes. The company is also conducting a Preliminary Economic Assessment (PEA), supported by RESPEC, which has expertise in potash deposits and mine development. The assessment includes third-party reviews of economic forecasts, cost analyses, and summaries of cultural, environmental, and ecological studies conducted to date. These studies indicate that no mitigation measures are required. The company expects to complete the final PEA by the end of the third quarter of 2025. In May 2025, U.S. President Donald Trump issued an executive order designating potash as a critical mineral. Subsequently, in August 2025, the U.S. Department of the Interior and the U.S. Geological Survey included potash on a draft list. This designation provides strategic advantages to companies engaged in potash production, such as access to federal funding opportunities and tax credits. Sage Potash CEO Peter Hogendoorn said, "Sage appreciates the U.S. federal government's decision to list potash as a critical mineral and thanks the USDA for the grant. With this support, we can better help increase domestic potash production, reduce foreign supply chain risks for American farmers, and create long-term value for our shareholders." The Sage Plain project has identified mineral resources in its 18th cycle upper and lower potash layers. Specifically, the upper potash layer has an inferred resource of 159.3 million tons with a grade of 26.96% K2O/42.67% KCl, and the lower potash layer has an inferred resource of 120.2 million tons with a grade of 22.60% K2O/35.77% KCl. Seismic surveys revealed continuous potash layers characterized by flat strata, minimal faulting, and an average depth of approximately 2,130 meters. According to Sage Potash, the project's geological conditions are favorable for solution mining, as the optimal formation temperature recorded is 68°C.
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