HOUSTON (ICIS)--Potash Ridge continues to see a willingness and ability of farmers to pay a premium for sulphate of potash (SOP) over conventional potash despite the gap in pricing, the Canadian fertilizer producer said on Friday.
Toronto-based Potash Ridge said, in North America, the average realised SOP price was approximately $670/tonne for Q1 2014, a slight decrease to the $690/tonne for the same period year-on-year.
The company said that contrasts with the average price of conventional potash, which was priced at $250/tonne in the first quarter of the year, and the pricing level of $363/tonne for the same period in 2013.
The company is currently focused on its flagship project, which is the Blawn Mountain Project located in southwestern Utah. The goal is the production of significant amounts of SOP, which is used with special crops and soil types.
The company is projecting annual SOP production of 645,000 tonnes when at full capacity, which will be targeted for sales within both the domestic and international markets.
Potash Ridge has said construction will begin in late 2015 with production starting in 2017. Initial capital cost for the project has been calculated at $1.1bn with the company anticipating possibly spending approximately $641m for infrastructure and utility upgrades.
Company officials said it expects to award the project feasibility study by mid-year but has already initiated discussions with potential engineering firms. In an update on the permitting process, Potash Ridge said the water rights application is expected to be received by Q2 2014 and that the large mining permit is still on track to be received mid-2014.