Carlsbad, N.M.-The Eddy County Commission adopted an ordinance last week authorizing industrial revenue bonds up to a maximum of $90 million to finance expansion of Intrepid Potash Inc.’s mining properties in the state. County Manager Allen Sartin told Green Markets it’s a done deal after the public hearing on the bond ordinance at the commission’s regular session July 20. “The next step will be that the underwriters will work with the market and ultimately sell the bonds,” Sartin reported. “Closing should take place sometime toward the end of August. Then the moneys will be available to the potash company to start the project.” Under the New Mexico Industrial Revenue Bond Act, the county may authorize a company to seek the industrial revenue bonds with the understanding that the county is not liable for repaying the debt. The county had been assured by its bonding attorney that it would be held harmless if the potash company were to default on its bond payments. Sartin said the legal documents drawn up fully protect the county. Intrepid, which has been eyeing various expansion plans, had not responded to inquiries at press time. The company has three production facilities in New Mexico and has indicated plans to apply solution mining technology presently employed at the company’s facility in Moab, Utah, as well as to expand its langbeinite recovery, the latter of which is expected to cost $85-$90 million (GM May 10, p. 13). Intrepid is still in the environmental impact statement process with the Bureau of Land Management for the HB Solar Solution Mine. Movement is going forward on a draft environmental impact statement (EIS). Intrepid is also evaluating the reopening of its North mine in New Mexico.
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