Crystal Peak Minerals Inc., Toronto, on Aug. 28 announced receipt of the Record of Decision (ROD) from the U.S. Department of the Interior for its Sevier Playa Project, located in west central Utah. It said the ROD de-risks the project and authorizes that construction can begin.
“The signing of the ROD is the most important milestone in this company’s history,” said Crystal Peak CEO Jon Mansanti. “As one of the few greenfield SOP projects approved in the world, we are absolutely thrilled. Securing the ROD initiates an exciting phase for the company. We look forward to a number of important announcements in the coming months in relation to financing, offtake, and the project.” Upon receipt of funding and completion of detailed engineering, the company said it will be in a position to begin construction in 2020.
Crystal Peak said it is engaged with several offtake candidates with strong North American and global distribution networks. In addition, BNP Paribas continues to advise the company on securing debt financing for the project, and the company said it is in advanced stages of selecting an advisor to assist with obtaining the required equity finance.
The facility would include evaporation ponds on some 124,223 acres of federal and state mineral leases in Milford County, with nearby rail and highway access. The playa itself is 26 miles long and eight miles wide. The minerals include potassium, magnesium, sulfate, and others, with the company eyeing the production of specialty fertilizers, particularly sulfate of potash (SOP), which is popular for use on chlorine-sensitive crops such as tree nuts, fruits, and vegetables.
Crystal Peak sees a 30-year life for the venture that could eventually produce up to 337,500 mt/y of SOP (GM Jan. 12, 2018). The company sees a market to sell some 300,000 mt/y of product without negatively impacting the premium SOP price over muriate of potash (MOP). The company believes that most of the product would be sold domestically.
SOP imports into the U.S. were less of a factor in the fertilizer year ending June 30, 2019, down 43 percent to only 65,733 st from the year-ago 115,586 st, according to the U.S. Department of Commerce.
The project would essentially double U.S. and Utah SOP production; the only other major producer is also in Utah –Compass Minerals, Overland Park, Kan., which produces product from its Ogden, Utah, facility using the Great Salt Lake.
The project is expected to create some 175 full-time jobs, with 275 during the construction phase.
The Crystal Peak news was widely reported in Utah and the ROD Aug. 27 signing ceremony in Salt Lake pulled in major dignitaries, included Assistant Secretary of the Interior for Land and Minerals Management Joseph Balash, who signed the ROD. Also attending were U.S. Representative Chris Stewart, leadership from the Utah Department of Natural Resources, state, district, and field office personnel from the Bureau of Land Management, Millard County commissioners, and the permitting team for the company.