IC Potash stands out in a crowded junior potash sp IC Potash stands out in a crowded junior potash space ie there is a scarcity of low cost assets, with manageable process risk, a proven resource, unparalleled management bench strength, access to infrastructure, and a solid balance sheet.
ICP is developing a world class, long life and low cost potash mine and production facility in Lea Country, southeast New Mexico, a stable and well-known mining jurisdiction where both the Mosaic Co. and Intrepid Potash are currently producing potash with excellent infrastructure with access to railways, ports, natural gas, roads and water. The vast majority of US potash reserves are in the region, including seven existing potash mines.
The foundation for IC Potash's process of turning polyhalite into Sulphate of Potash (SOP) is based on previous work performed by the US Bureau of Mines (USBM) and the Potash Company of America (PCA). In its simplest form, the IC Potash process uses heat and water to produce a tailored brine similar to those occurring naturally in a small handful regions in the world. The front-end polyhalite-to-brine process has been proven historically and is well documented. The back-end brine-to-SOP process is currently being used around the world. Though the entire process has not yet been proven at commercial scale, the process risk is far from binary, with any issues now associated with optimization rather than feasibility.
SOP is a significant fertilizer used by producers of vegetables, fruits, tobacco, horticultural plants due to the fact it does not contain the chloride associated with MOP which can damage high value crops.
There are only three SOP producers in the world with naturally occurring sources of SOP and these producers have operating costs less than half the marginal producer, low-cost supply is scarce, and SOP demand is more stable than MOP.
Land to service solar evaporation ponds is also plentiful.
