Solution potash mine approved in New Mexico

Intrepid Potash (NYSE:IPI) was up 2% today on news that its solution mining project near Carlsbad, New Mexico has been approved by the US Bureau of Land Management (BLM).

Local newspaper Carlsbad Current-Argus reports the HB Solar Solution Mine Project will be developed in an abandoned potash mine formerly owned by Potash Company of America and later Eddy Potash. According to the company:

The HB Project would involve injecting salt-saturated brine underground to selectively dissolve and recover potash in existing, idled mine workings. Once enriched with dissolved potash, the brine would be pumped through pipelines to above-ground lined, solar evaporation ponds where the potash would be recovered after evaporation. The project would entail a 12 to 18 month construction phase of the following facilities: water supply wells and associated piping, 6 injection wells and 5 extraction wells with 37 miles of associated pipelines (primarily on federal and state land), 520 acres of solar evaporation ponds on property owned by Intrepid and a new flotation plant adjacent to the existing processing facilities at Intrepid’s West Facility.

Among its environmental mitigation strategies, Intrepid says the project would use salty, non-potable groundwater to create the brine for injecting into the bore wells; and that evaporation ponds would utilize industrial-grade plastic liners protected by an 18-inch layer of hardened salt.

The local newspaper quotes the BLM’s Carlsbad field manager saying the project meets the BLM’s requirement for balanced management of public lands:

“The project allows for the development of potash minerals while protecting other resource values including air quality, water quality, wildlife, cave resources and cultural resources.”

Intrepid first announced the project in 2005 but had to submit a full environmental impact statement as well as undergo a series of public meetings. The mine is expected to have a 28-year life and produce 150,000-200,000 tonnes of potash per year for a total yield of about 5 million tonnes.

Intrepid Potash is the largest potash producer in the Unites States.

 

 

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