Laos unveiled a development plan to transform the nation into Asia’s leading potash supplier by building new production facilities, expanding mining operations, and leveraging its direct rail link to China.
Deputy Minister of Energy and Mines Chansaveng Boungnong presented the plan at the 2024 China Potash Salt Industry Chain Development Conference on 3 November.
According to Chansaveng, the government intends to establish three NPK (Nitrogen, Phosphorus, and Potassium) fertilizer plants—one in Vientiane Capital and two in Khammouane Province. The plan also includes building at least two bromine salt factories to further diversify Laos’s mineral processing capabilities.
To support these initiatives, the government has granted exploration, mining, and processing rights to 18 companies across 162,260 hectares in key regions, including Vientiane Capital, Vientiane Province, Khammouane, and Savannakhet. These areas are rich in potash, which will form the backbone of the country’s expansion in the fertilizer industry.
A key feature of the development plan is the focus on sustainability. Chansaveng emphasized that Laos aims to build a potash industry that is environmentally friendly, positioning the nation as a green and sustainable alternative in the global fertilizer market.
A crucial aspect of the plan is the Laos-China Railway, a green, low-carbon electrified railway that will play a pivotal role in Laos’s emergence as a potash supplier.
By significantly lowering transportation costs, the railway will boost Laos’s access to key markets, especially China, the largest consumer of potash in the Asia-Pacific. This efficient transportation route will also enhance Laos’s competitive edge and make its potash products more accessible to other neighboring countries.
In 2023, China used nearly 1.88 million tons of potash fertilizer, with the majority coming from imports due to limited domestic production. The region’s annual demand is expected to range between 60-70 million tons, creating a robust market for potash suppliers.
With its vast reserves of potash, estimated at 133.62 billion tons of potassium chloride, Laos is well-positioned to meet this growing demand. If successful, the country could rise to become the third-largest global supplier of potash, behind Russia and Canada.
