Intrepid Potash Inc. on June 21 announced the successful completion of Phase One of its HB Injection Pipeline Project at the company’s HB Solar Solution potash mine near Carlsbad, N.M., which involved the installation of a 21-mile pipeline to increase brine injection rates.
The goal of the pipeline is to improve brine grade and maximize brine availability, Intrepid said, both of which are essential for the efficient operation of the HB Solar Solution mine. Capital spending for Phase One totaled approximately $16 million, the company said.
As a result of Phase One completion, Intrepid said it now has proven injection rates at up to 2,000 gallons per minute (GPM), almost triple the average injection rate of approximately 700 GPM over the past five years.
“Our primary focus for 2023 is the successful execution on our growth projects designed to improve our brine grade and availability,” said Bob Jornayvaz, Intrepid CEO and Executive Chairman. “Completing Phase One of the HB Injection Pipeline Project on schedule and within budget is a great first step in increasing our annual potash production, which should significantly improve our unit economics.”
The company also provided an update on Phase Two of the project, which involves the installation of an in-line pigging system to clean the pipeline and prevent scaling to help ensure more consistent flow rates. Intrepid said it continues to work through the permitting process but expects Phase Two construction to begin by the end of the year, with commissioning expected in the first quarter of 2024.
“Due to the nature of the brine injection and evaporation cycle, we expect to see production improvements at HB starting in the fall of 2024,” Jornayvaz said.
Until the completion of Phase Two, Intrepid anticipates operating at average injection rates of approximately 1,100 GPM, which the company said are roughly 55% higher than rates before the start of the project. Following the completion of Phase Two, however, Intrepid expects injection rates to jump to 1,500-2,000 GPM.