Jehiricoj on wpx board.
Conventional vs Solution Mining
jerichoj1
1/23/2013 7:37:58 PM | | 99 reads | Post #32066395
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I was looking up western and found this article. I know its old, it has with Potash 1, Athabasca and Wpx when they had there Manitiba mine I guess.
I learned a lot between conventional mining and solution mining. I think WPX should be hoping for a buy out like Potash 1. Same engineering firm, almost the same project, identical. Hopefully when the EIS comes in. It will make them a cantidate. .
The only thing that is worry some is K+S bought Potash 1 and Vale is looking to get out. WPX is right beside. Did Vale see something they didnt like?
We just saw an Indian company sign with KRN ( not like it did anything to there SP) So there is hope for the juniors, just takes time. Id expect to see WPX get through just like Potash 1
This report is from 2009, If anyone has acess to a up to date please post it.
Interesting find Jerichoj ,
couple of problems though.
you wrote " I learned a lot between conventional mining and solution mining. I think WPX should be hoping for a buy out like Potash 1. Same engineering firm, almost the same project, identical. Hopefully when the EIS comes in. It will make them a cantidate. ."
that is not what the report that you found said. A couple of glaring differences.
1st difference was that the report noted that potash1 would cost $1.1 billion less than wpx's mine.
Potash One (KCL) – Outperform (Speculative)
± Estimated price tag for 2.4 million tonne solution potash mine is C$1.9 billion.
Western Potash (WPX) – Market Perform (Speculative)
- Estimated price tag for 2 million tonne conventional potash mine is C$3.0 billion.
2nd difference is that they note that potash1's mine allows for a scaleable design( just like krn's)
and that of course as we know wpx's design does not.
Regarding potash 1 the report noted "With more scalable solution mining, KCL could opt for a smaller operation, which is easier to finance."
so as to your comment that potash1 and wpx's mines are "almost the same project, identical" I think you might be considerably wide of the mark there about $1.1 billion dollars wide. And lets not forget the attractiveness of a scaleable project that interested a certain Indian fertilizer company to sign a considerable 20 yr offtake and purchase 20% of Karnalyte.
so just to recap, potash one was a scaleable potash mine that will cost $1.1 billion dollars less than wpx's mine to build. Sounds an awful lot more similar to Karnalyte don't you think.
I would think that BHP's bloated $13 billion dollar Jansen mine was "almost the same project, identical" to wpx's if you ask me.
very hard to be retiringyoung on the information in your first post.