Valuation of potash occurrences within the Waste Isolation Pilot Plant site in southeastern New Mexico
A study of current production costs and market conditions in the potash industry of the Carlsbad area was made in order to determine the potential values of the potash mineral resource that would be lost or foregone if the Waste Isolation Pilot Plant (WIPP) facility is constructed on the proposed site in that area. Analyses were made of all potash mineral deposits determined to be in the site. Mining and processing under the most favorable recovery systems were considered. Value determinations were based upon estimated operating and capital costs of current mine-mill operations in the Carlsbad area. One group of the highest grade deposits, designated as Mining Units and occurring partially in the site, was determined to be commercial. These mineral occurrences are ore and are classified as reserves. About 20.2 million tons of potash products could be produced from the 48.46 million tons of ore in these reserves. The value lost in terms of current dollars for an acquisition cost, for taxes payable on estimated revenues, and for royalties payable to the owners of the potash is about $51.8 million. The gross market value of the products is about 1.03 billion which, less operating costs other than taxes and royalties, less the return of the investment other than the acquisition cost, and less interest on the investment limited to 15 percent, is the $51.8 million value chargeable to the WIPP project. An additional 169.1 million tons of lower grade, subeconomic potash resources in the site contain 25.5 million tons if today's prices were increased without increasing today's costs until the deposits become commercial.
- Research Organization:
- Bureau of Mines, Salt Lake City, Utah (USA). Salt Lake City Metallurgy Research Center
- OSTI ID:
- 5359442
- Report Number(s):
- ALO-18
- Country of Publication:
- United States
- Language:
- English
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12 MANAGEMENT OF RADIOACTIVE AND NON-RADIOACTIVE WASTES FROM NUCLEAR FACILITIES
ALKALI METAL COMPOUNDS
CAPITAL
CARBON COMPOUNDS
CARBONATES
COST
EVALUATION
FUNCTIONAL MODELS
MANAGEMENT
MARKET
MINING
MONOPOLIES
NATURAL OCCURRENCE
NEW MEXICO
NORTH AMERICA
OXYGEN COMPOUNDS
PILOT PLANTS
POTASSIUM CARBONATES
POTASSIUM COMPOUNDS
PRODUCTION
RADIOACTIVE WASTE STORAGE
RECOVERY
STORAGE
USA
WASTE MANAGEMENT
WASTE STORAGE