Potash company files permit application for Holbrook mine
Prospect Global Resources, the Denver-based parent company of American West Potash, filed two key permit applications to develop a large underground potash mine outside Holbrook, Arizona, on the east side of Petrified Forest National Park. [Right, AWP lands in purple, National Park Service lands in yellow. Credit,Nested Quotes]
The company's announcement said they "filed with the Arizona State Land Department
its Draft Mineral Development Report as part of an application to
convert certain of its state exploration permits into mineral leases.
The Mineral Development Report discusses the mining, geology,
processing, environmental impact and economics of the Company's proposed
annual production of 2 million metric tons of potash. The Company also
submitted an application for its Air Quality Control Permit to the Arizona Department of Environmental Quality for administrative review."
The capital costs of developing the proposed mine was previously estimated at about $1.4 billion.
The U.S. currently produces about 1 million tons of potash per year, mostly for fertiizers, but imports 85% of the total amount consumed. AWP signed a deal to sell a quarter of its production for 10 years to a Chinese company.