Chemtrade & Potash Ridge
...think ,PRK's Sulphuric Acid segment could be very interesting in the near Future,
speciallyinthe United States,...
Sulphuric Acid
Sulphuric acid has a wide range of industrial and domestic uses, including mineral processing and fertilizer production. The United States consumed approximately 35 million tonnes of sulphuric acid in 2013, of which approximately 3 million tonnes were imported, largely from Canada and Mexico. United States sulphuric acid demand is generally expected to increase in line with economic growth.
The amount of sulphuric acid available to be exported to the United States from Canada and Mexico is expected to decline in the coming years, due to cut-backs in production and higher domestic demand within these countries. Declining imports from these neighbouring countries, combined with growth in demand, will necessitate the United States to either increase domestic production of sulphuric acid or import sulphuric acid from further afield, most likely Europe.
This potential domestic supply deficit provides Potash Ridge with an opportunity to become a key supplier of sulphuric acid, primarily into the west mountain state region of the United States.
POTASH RIDGE-Prefeasibility Study
https://www.potashridge.com/blawn-mountain/Prefeasibility-Study/default.aspx
The Project has an estimated NPV of $1.0 billion (after tax, 10% discount rate) and an estimated unlevered IRR of 20.5% (after tax).
Production volume is planned at an average of 645,000 tons of SOP per annum for the 40-year life of the Project, ranging from 861,000 tons per annum to 496,000 tons per annum. An average of 1.4 million tons of sulphuric acid is also planned to be produced annually.
Over the life of the Project, a total of 26.4 million tons of SOP and 59.0 million tons of sulphuric acid is planned to be produced.
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Sulphuric acid price (average)
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$135/ton
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