Canadian junior Sage Potash has obtained approval for a $14-million grant from the US Department of Agriculture (USDA) to help finance the development of its Sage Plain potash project in the Paradox basin, Utah.

Funding was awarded through its wholly owned subsidiary, Sage Potash (USA), and will support the company’s plan to build a 300 000 t/y potash operation.

“The USDA grant underscores the importance of increasing domestic potash capacity to serve US farmers and Sage is uniquely positioned to build incremental capacity in-market that is derisked in terms of capital, time to production and execution. This grant brings Sage Potash one step closer to planned production and accelerates partnering and financing efforts,” said president and COO Tim Mizuno.

He added that the project was expected to create about 100 jobs in San Juan county, Utah, using solution-mining techniques that would improve safety and environmental impacts compared with conventional potash mining.

The grant represents a significant portion of the project’s anticipated costs. Sage is advancing permitting and a preliminary economic assessment (PEA) with technical partner RESPEC. The PEA, which includes a third-party review of project economics and costs, as well as completed cultural, environmental and ecological studies, is expected before the end of the third quarter.

Potash, a key nutrient for plant growth, was added to the US Department of the Interior’s draft critical minerals list in August following a May executive order by President Donald Trump. More than 90% of US potash consumption is currently imported, primarily from Canada, the former Soviet Union and the Middle East.

“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,” said CEO Peter Hogendoorn.

The grant was approved under the Fertilizer Product Expansion Program, which supports the expansion of fertilizer and nutrient production in the US.