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.

(© Copyright 2013 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)

Comments

More From CBS Denver

Weather App
CBS4 Hiking Weather Forecast Page

Listen Live

AM/FM Stations

Featured Shows & Multimedia