Great Salt Lake Minerals Corp. (GSLM), a unit of Compass Minerals, on Nov. 11 disclosed plans to incorporate new technology that will enable use of much less water than the company had requested to expand its solar evaporation pond system at the Great Salt Lake.

The company reported that this innovation is possible because of its new, patent-pending technology that increases the efficiency of its solar evaporation ponds by 60 percent. GSLM maintains that pond expansion is necessary to meet the long-term need for more sulfate of potash and has also submitted plans to add the new solar ponds in increments so that the company and public agencies can monitor the lake’s ecology, and to minimize near-term water usage.

“The need for our all-natural sulfate of potash is expected to rise significantly over the next five years as fruit and vegetable consumption increases,” said Corey Milne, site manager of GSLM. “This new plan will allow us to meet the needs of American farmers, and at the same time create new jobs to strengthen Utah’s economy and provide millions of dollars in new royalties to the state.”

Environmental groups, which have opposed the expansion plans because of concerns about the impact on the lake ecology, welcome the news about reducing water use. For one, Lynn de Freitas, executive director of Friends of Great Salt Lake, told Green Markets that GSLM still hasn’t shown a clear need for any expansion of their existing footprint. De Freitas remarked, “It’s good that they are decreasing their water use, but they still have lots to use under the existing entitlement with the state and they still want more.”

In its entirety, the company’s alternative plan for long-term SOP production is projected to use 150,000 acre-feet per year of additional brine, in contrast to the 353,000 additional acre-feet originally requested ?Çô a reduction of more than 50 percent. The company said the new solar-pond technology would increase the yield of sulfate of potash within the current footprint. This technology will also be used in the construction of the new solar evaporation ponds as part of the incremental development plan announced today.

“This technology has been proven effective, and we’re pleased that we now can introduce this technology into our overall plan to increase production while reducing the amount of water we need,” said Milne. “And, by developing the ponds incrementally, we can deliver enough SOP today and tomorrow to meet the rising demand from America’s food growers. This approach is good for Utah and delivers the nutrients that farmers need in the next decades.”

GSLM is working with the U.S. Army Corps of Engineers and the Corps’ environmental consultants to assess newly exposed lakebed within the proposed expansion area that is normally submerged. GSLM has made a commitment to preserve wetlands, so this acreage is being reevaluated to ensure that it is appropriate for development. GSLM submitted a proposal to the Corps in February 2009 to expand its solar evaporation pond acreage in order to increase SOP production.

The Corps is conducting an environmental impact study of the project. GSLM worked with the Corps, the U.S. Environmental Protection Agency, and the Utah Department of Natural Resources to develop the new adaptive management plan.

USDA released two reports last week that buoyed crop prices and fueled prospects for still higher fertilizer prices.

USDA’s Nov. 9 Crop Production Report estimated the U.S. corn crop at 12.5 billion bushels, down 1 percent from last month’s estimate and down 4 percent from last year’s record production of 13.1 billion bushels. As of Nov. 1, corn yields were expected to average 154.3 bushels/acre, down 1.5 bushels from the previous month and 10.4 bushels below last year’s record of 164.7 bushels. USDA said yield forecasts had dropped from last month throughout much of the Cornbelt; yield projections increased in the Northern Plains and Great Lakes areas.

The World Agricultural Supply and Demand Estimates (WASDE) report on Nov. 9 reduced U.S. feed grain supplies for 2010/11 on the basis of lower expected corn production. Corn ending stocks for 2010/11 are projected at 827 million bushels, down 75 million bushels from last report and the lowest since 1995/96. Those figures represent a carryout of 6.2 percent of projected usage, compared with 5 percent in 1995/96.

WASDE projected the season-average farm price at $4.80-$5.60 per bushel, up 20 cents on both ends of the range and well above the previous record of $4.20 per bushel in 2007/08.

The Nov. 9 Crop Production Report pegged U.S. soybean production at a record high 3.38 billion bushels, down 1 percent from the October forecast but up slightly from last year. Based on Nov. 1 conditions, soybean yields were expected to average 43.9 bushels/acre, down 0.5 bushel from last month and down 0.1 bushel from last year’s record high. USDA projected yield decreases from last month in Kansas, Nebraska, New Jersey, and South Dakota, but said projected yields in Illinois, Louisiana, New York, and Wisconsin will reach record levels if realized. USDA estimated that 76.8 million acres of soybeans will be harvested in the U.S. this year, up 1 percent from 2009.

WASDE projected total U.S. oilseed production for 2010-2011 at 101.8 million tons, down 1 million tons from last month. Soybean ending stocks were projected at 185 million bushels, down 80 million from last month. Prices for soybeans and products were projected higher for 2010/11. The U.S. season-average soybean price range was projected at $10.70-$12.20 per bushel, up 70 cents on both ends. Global oilseed production for 2010/11 was projected at 440.7 million tons, up 0.1 million from last month.

All U.S. cotton production was forecast at 18.4 million 480-pound bales in the Crop Production Report, down 2 percent from last month but up 51 percent from last year’s 12.2 million bales. Cotton yields are expected to average 821 pounds per harvested acre, up 44 pounds from last year.

WASDE estimated ending cotton stocks at 2.2 million bales, down 500,000 bales and the lowest since 1925. The range for the marketing year average price for 2010-2011 received by producers was forecast at 74-86 cents per pound, up 7 cents on both ends. The midpoint of the range, if realized, would be the highest price since the Civil War. Global ending cotton stocks were reduced 5 percent to 42.2 million bales.

U.S. rice production in 2010/11 was forecast at 241.6 million cwt, 0.7 million below last month due to a decrease in yield. The average rice yield was estimated at 6,669 pounds/acre, down 18 pounds from last month. Harvested area was unchanged at 3.62 million acres. The long-grain, combined medium- and short-grain, and rice season-average farm price forecasts were all unchanged from last month at a range of $10.50-$11.50 per cwt, $17.30-$18.30 per cwt, and $12.10-$13.10 per cwt, respectively.

Global 2010/11 rice production was forecast at a record 451.4 million tons, down 1.1 million from last month. Global ending stocks for 2010/11 were projected at 94.3 million tons, nearly unchanged from last month, but down 1.1 million tons from the previous year.

Yara Australia Pty. Ltd. (Yara) on Nov. 9 began legal action against Burrup Holdings Ltd. (Burrup) and its wholly-owned subsidiary, Burrup Fertilisers Pty. Ltd., after those companies blocked attempts to allow an independent auditor to undertake a full inspection of Burrup’s books. Yara had sought to exercise its rights as a 35 percent shareholder of Burrup and carry out the audit, but has been denied access by Burrup.

“Yara is disappointed with the denial of its rights under the Burrup shareholders deed. We have followed due process in our efforts to gain access and will not be deterred in exercising our rights to ensure Burrup is subjected to appropriate levels of accountability,” said CFO Hallgeir Storvik.

Yara believes the inspection is necessary to address a number of concerns, including: the failure of Burrup to prepare and file financial reports; the high cost levels within Burrup, which remain unexplained; the persistent lack of transparency and appropriate adherence to corporate governance principles by the company’s Chairman and Managing Director Pankaj Oswal; and serious allegations raised by the media regarding the misuse of Burrup funds and the failure of the company to provide an adequate explanation.

“This action is being taken in the interests of Burrup and is designed to get to the bottom of what exactly is happening inside the company,” added Storvik. “A situation where a public company has failed to prepare and file a financial report within the time prescribed is intolerable, and we will vigorously pursue our rights. In the meantime, we would urge Burrup to cooperate in the process. Mr. Oswal’s recent attempts to frustrate, delay, and divert attention from these matters of substance need to end,” says Storvik.

Yara has lodged an application with the Federal Court of Australia seeking an order requiring Burrup to allow the inspection.

Yara has been unhappy with both Burrup’s economic performance and Oswal’s attempt to turn the public company private (GM Oct. 25, 2010).