US Crystal Peak potash project targets SOP-hungry California farm belt

Andy Hemphill

17-Oct-2018

LONDON (ICIS)–US sulphate of potash (SOP) fertilizer start-up Crystal Peak Minerals aims to make Utah the “solar salt capital of the country”, and is on course to begin construction at its Sevier Lake site in the fourth quarter of 2019.

Despite well-established SOP producers already catering to Californian farmers, Crystal Peak’s potential is clear, according to its CEO.

“We’re mere months off reaching a key permit milestone, offtake and financing agreements are in the pipeline, and the value is waiting there, on the playa,” said John Mansanti.

The firm’s CEO spoke to ICIS at The Fertilizer Institute (TFI) annual conference in San Francisco earlier this month.

Crystal Peak’s plan centres on utilising a solar evaporation method to produce SOP fertilizer, drawing salt-rich brine fluid from the dry lakebed of the Sevier playa, and letting the sun burn the fluid off, leaving salts.

This salt is then processed into SOP, a granular, low-chloride, high-potassium fertilizer ideally suited to nourish fruits and vegetables, nuts, tobacco, and other greenhouse-type crops – just like those grown in the vast farm belts of neighbouring California.

“We expect to produce [approximately] 300,000 tonnes of SOP annually at full capacity, over a 30-year [mine] life,” said Mansanti.

“Two-thirds will be brine-based, and the remainder will be from reacting muriate of potash [MOP] with the excess sulfates in the brine,” he adds.

MOP – a less-refined potassium-based fertilizer – is readily available in North America, from both Canada and the US.

Crystal Peak’s nearest SOP competitor, Compass Minerals, operates in Ogden, Utah, north of the Sevier playa.

“California will be key market for us, followed by the remainder of the US and offshore,” said Mansanti, pictured.

The prospective producer intends to pursue additional financing in the second quarter of 2019, and will highlight the potential for unlined evaporation ponds at the site to investors, having confirmed a layer of low-permeability earth underlies Sevier playa.

Other cost-savings stem from readily available transport routes to California, and the Sevier site’s relative closeness to power supplies and a potential workforce.

On paper, Crystal Peak appears to have a solid plan, and the executive experience to make the project work.

The challenge ahead centres on wooing investors in a tight financial market for natural resource projects, and placing product into the market, while preserving SOP’s premium over other fertilizers.

Mansanti’s team believes the extended production ramp-up associated with solar pond production will allow them to pace their presence into the market.

Despite the looming trials, Mansanti is hopeful of completing construction by 2023.

Production will then ramp-up over three years, from 27,500 tonnes/year in 2022 to 337,500 tonnes/year capacity in late 2025.

Pictured above: Farms in California, with the Sierra Nevada mountains in the background
Pictures sources: Design Pics Inc/REX/Shutterstock and Crystal Peak

Interview article by Andy Hemphill 

Clarification: Clarifies production method in paragraph 8 and company goals in paragraph 15

READ MORE

Global News + ICIS Chemical Business (ICB)

See the full picture, with unlimited access to ICIS chemicals news across all markets and regions, plus ICB, the industry-leading magazine for the chemicals industry.

Contact us

Now, more than ever, dynamic insights are key to navigating complex, volatile commodity markets. Access to expert insights on the latest industry developments and tracking market changes are vital in making sustainable business decisions.

Want to learn about how we can work together to bring you actionable insight and support your business decisions?

Need Help?

Need Help?