Intrepid Potash, Inc. Announces BLM Approval of the HB Solar Solution Mine Project and Commencement of Construction
Intrepid Potash, Inc. ('Intrepid?) (NYSE:IPI) announced today that on
March 19, 2012, the Bureau of Land Management ('BLM?) issued its Record
of Decision ('ROD?) approving the HB Solar Solution mine near Carlsbad,
New Mexico and, with the BLM′s approval, Intrepid immediately commenced
construction activities on the project. The ROD became final this month.
Commencement of construction, Intrepid Potash, HB Solar Solution mine project, Carlsbad, New Mexico. (Photo: Business Wire)
Intrepid′s Executive Chairman of the Board, Bob Jornayvaz, stated, '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. 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.? Mr. Jornayvaz continued, 'The
tremendous support for the project from the Carlsbad community; local,
state, and federal government; and the oil and gas operators in the area
was integral to our successful navigation of the Environmental Impact
Statement process required by the National Environmental Policy Act. The
ROD validates that the project meets the requirements for balanced
management of public lands.?
We expect to invest a total of approximately $200 - $230 million to
construct the HB Solar Solution mine, with approximately $35.3 million
invested to date. Further, we anticipate that the first production from
the HB Solar Solution mine will begin 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 HB Solar Solution mine is expected to be
150,000 to 200,000 tons of potash.
About the HB Solar Solution Mine
The HB Solar Solution mine was formerly operated as a conventional
underground potash mine and was idled in 1997 by its previous owner. We
will use the same solar evaporation and solution mining technology at
the HB Solar Solution mine that we currently use at our Moab, Utah
facility. We believe the HB Solar Solution mine is well suited for
solution mining due to the accessibility of the mineral resource, the
geology of the mine, and our ability to leverage certain portions of our
existing infrastructure and personnel in Carlsbad, New Mexico. The HB
Solar Solution mine has five million tons of proven and probable
reserves and an estimated mine life of 28 years.
Intrepid is the largest producer of potash in the U.S. and is dedicated
to the production and marketing of potash and Trio ?, a
specialty nutrient produced from langbeinite ore. Intrepid owns five
active potash production facilities -- three in New Mexico and two in
Utah. The HB Solar Solution mine will increase the number of our active
potash production facilities to six.
Intrepid routinely posts important information about its business on its
website under the Investor Relations tab. The website address for
Intrepid is www.intrepidpotash.com.
Certain statements in this press release, and other written or oral
statements made by or on behalf of us, are 'forward-looking statements?
within the meaning of the federal securities laws. Statements regarding
future events and developments and our future performance, as well as
management's expectations, beliefs, plans, estimates or projections
relating to the future, including statements regarding our financial
outlook, are forward-looking statements within the meaning of these
laws. Although we believe that the expectations reflected in such
forward-looking statements are based upon reasonable assumptions, there
can be no assurance that the expectations will be realized. These
forward-looking statements are subject to a number of known and unknown
risks and uncertainties, many of which are beyond our control that could
cause actual results to differ materially and adversely from such
statements. These risks and uncertainties include:
changes in the price of potash or Trio ?;
operational difficulties at our facilities that limit production of
our products;
operational variances due to geological or geotechnical variances;
interruptions in rail or truck transportation services;
the ability to hire and retain qualified employees and contractors;
changes in demand or supply for potash or Trio ?/langbeinite;
changes in our reserve estimates;
the costs and our ability to successfully construct, commission and
execute the projects that are essential to our business strategy,
including the development of our HB Solar Solution mine, the further
development of our langbeinite recovery and granulation assets, and
our North granulation plant;
adverse weather events at our facilities, including events affecting
net evaporation rates at our solar solution mining operations;
changes in the prices of raw materials, including the price of
chemicals, natural gas and power;
fluctuations in the costs of transporting our products to customers;
changes in labor costs and availability of labor with mining or
construction expertise;
the impact of federal, state or local government regulations,
including environmental and mining regulations, and the enforcement of
those regulations;
obtaining permitting from applicable federal and state agencies
related to the construction and operation of assets;
competition in the fertilizer industry;
declines in U.S. or world agricultural production;
declines in use by the oil and gas industry of potash products in
drilling operations;
changes in economic conditions;
our ability to comply with covenants inherent in our current and
future debt obligations to avoid defaulting under those agreements;
disruption in credit markets;
our ability to secure additional federal and state potash leases to
expand our existing mining operations;
governmental policy changes that may adversely affect our business; and
the other risks and uncertainties detailed in our periodic filings
with the U.S. Securities and Exchange Commission.
The forward-looking statements contained in this document speak only as
of the date of this press release, April 26, 2012. Subsequent events and
developments may cause our forward-looking statements to change, and we
will not undertake efforts to update or revise publicly any
forward-looking statements to reflect new information or future events
or circumstances after this date.
Photos/Multimedia ?Gallery Available: http://www.businesswire.com/cgi-bin/mmg.cgi?eid=50254644&lang=en
Intrepid Potash, Inc.
William I. Kent, 303-296-3006
