Denver — Intrepid Potash Inc. said April 26 that it has begun construction of the HB Solar Solution mine near Carlsbad, N.M., noting that a Bureau of Land Management Record of Decision was granted March 19, 2012 (GM April 2, p. 10). Intrepid said the ROD became final this month. "We are very pleased to have begun construction of our HB project after more than three years of the BLM’s careful review and study of the project’s environmental impacts,” said Intrepid Executive Chairman Bob Jornayvaz. “This project is a game changer for Intrepid that will allow us to capitalize on our solution mining and solar evaporation expertise that we have developed from our current operations in Moab and Wendover, Utah. The HB Solar Solution mine will be one of the lower-cost potash mines in North America, with cash costs estimated to be between $60 and $80 per ton, improving our overall cost profile and margin opportunity. We also expect the mine to increase our potash production by approximately twenty-five percent." Intrepid expects to invest $200-$230 million to construct the mine, with approximately $35.3 million invested to date. It expects the first production in late 2013 following the initial evaporation season, with increasing production in 2014, and a ramp-up to full production expected in 2015, assuming the benefit of average annual evaporation cycles applied to full evaporation ponds. The estimated annual production from the mine is expected to be 150,000-200,000 st of potash. The mine was formerly operated as a conventional underground potash mine and was idled in 1997 by its previous owner. Intrepid will use the same solar evaporation and solution mining technology that it currently uses at Moab, Utah. The mine has 5 million st of proven and probable reserves, and an estimated mine life of 28 years. Intrepid owns five active potash production facilities – three in New Mexico and two in Utah. The new mine will increase the number to six.
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