topsecret10 (< 20)

Peak Phosphate Spells End of Cheap Food

October 30, 2010 – Comments (3) | RELATED TICKERS: LGDI.OB

And one of the companies that  I have been blogging about for over a year could turn a small amount of cash Into a small fortune. I have talked to Legend’s Executive General Manager Craig Michael  In person,and he was very personable,sincere,and forthcoming about the company. Here Is an article that I found that puts an Interesting perspective on Legends story,and I think It's a story that will have a very happy ending for those who are willing to dream,and have patience, as this quite unlikely story plays out. It's what dreams are made of .....   :)   TS     Potash may be a hot commodity garnering plenty of headlines as of lately. But in the quest to feed a burgeoning global population, phosphate may eventually steal the limelight. That’s because this lesser-known but equally indispensible key ingredient in fertilizer is expected to run out long before potash ever does.

"While the exact timing may be disputed, it is clear that already the quality of remaining phosphate rock reserves is decreasing. And cheap fertilizers will be a thing of the past," warns Dr. Dana Cordell of the Institute for Sustainable Futures (which is part of the University of Technology in Sydney, Australia).

So it’s not surprising that BHP Billiton’s recent record-setting US $39 billion dollar offer for Potash Corp of Saskatchewan factored-in a valuation of around US $11 billion for the fertilizer giant’s phosphate and nitrogen assets. At least that’s the assessment of the leading U.S. investment banker, Morgan Stanley.

Investment industry analysts are now all proclaiming that the fertilizer sector is on the cusp of a boom that could last for the foreseeable future, partly due to a looming global shortfall of high-grade phosphate. And that’s music to the ears of one small Australian mining company called Legend International (NASD-OTC: LGDI). 

Legend’s Executive General Manager Craig Michael agrees that there’s a “critical need” to ramp-up the worldwide application of phosphate-based fertilizers to provide sufficient food for a surging global population. And a pending supply/demand squeeze promises to translate into higher phosphate prices, he says.

“By 2050 the population is estimated to be over nine billion people and phosphate demand is highly correlated to this growth,” Michael adds. “Quality, mineable, accessible phosphate rock deposits are dwindling around the world which is why Legend is aggressively pursuing its quality phosphate development project in Queensland, Australia.”

By way of background, all agricultural crops require phosphate, which is an essential element for plant growth. And it cannot be substituted with anything else. Unfortunately, the academics at Sydney’s University of Technology believe “peak phosphate” could become a reality as soon as 2030.      http://www.resourceinvestor.com/News/2010/10/Pages/Peak-Phosphate-Spells-End-of-Cheap-Food.aspx