Business

Jul 16, 2013 4:09 PM by Juice Godfrey

Study estimates costs for proposed US potash mine

DENVER (AP) - A Denver-based company hoping to mine potash in northeast Arizona estimates such a project could have average annual production of about 1.3 million tons over the 26-year life of the mine.

Prospect Global Resources Inc. said Tuesday that a pre-feasibility study estimates the project would cost $825 million. The mine's operating costs are estimated at $115 per ton. Potash is an ingredient in fertilizer and is selling at around $480 per ton.

The mine is planned for the Holbrook Basin on state and private land with access to a rail line, power, water and a highway. Vice Chairman Chad Brownstein says it would take about two years to build.

The company next plans a more detailed study, which will take about nine months to complete.

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