Canada-based Sage Potash has secured approval for a $14m (C$19.32m) grant from the US Department of Agriculture (USDA) to advance its Sage Plain Potash Project in the western US.
The potash asset is situated in the Paradox Basin, Utah.
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This funding is facilitated through company affiliate Sage Potash (USA). It forms a substantial part of the financial backing for the project, which aims to produce 300,000 tonnes per annum (tpa) of potash.
The USDA approved the grant under its Fertilizer Product Expansion Program, an initiative focused on enhancing the manufacturing and availability of fertilisers within the US.
The grant aligns with efforts to bolster domestic production of potash, an essential nutrient for plant growth and a key component in ensuring global food security. Currently, more than 90% of potash used in the US is imported from regions including Canada, the former Soviet Union and the Middle East.
Sage Potash stated that it is progressing with 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.
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By GlobalDataThe assessment encompasses third-party reviews of economic projections, cost analyses, and summaries of cultural, environmental and ecological studies conducted to date. These studies have indicated that no mitigation measures are required.
The company expects to complete the final PEA by the end of Q3 2025.
In May 2025, potash was included as a critical mineral following an Executive Order from US President Donald Trump. Subsequently, it was added to the draft list by the Department of the Interior and US Geological Survey in August 2025.
This designation offers strategic advantages such as access to federal funding opportunities and tax credits for companies involved in potash production.
Sage Potash CEO Peter Hogendoorn said: “Sage applauds the US Federal administration’s decision to add potash to the critical mineral list and is grateful for the USDA grant.
“With this support, we are well positioned to help grow domestic potash production, derisk the foreign supply chain for American farmers and create long-term value for our shareholders.”
The Sage Plain Project has identified mineral resources within its Upper and Lower Potash Beds, Cycle 18. Specifically, inferred resources stand at 159.3 million tonnes (mt) with grades of 26.96% potassium oxide (K2O)/42.67% potassium chloride (KCl) for the Upper Bed and 120.2mt grading 22.60% K2O/35.77% KCl for the Lower Bed.
Seismic surveys reveal continuous potash beds characterised by flat-lying formations with minimal faulting at an average depth of around 2,130m.
According to Sage Potash, the project’s geological conditions are favourable for solution mining due to optimal formation temperatures recorded at 68°C.
