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Past, Present and Future

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Past, Present and Future summer 2008 New Mexico Potash—Past, Present, and Future Potash is the general term for natural and production and supplied 19 percent of the than the long-term average of $120 per manufactured water-soluble compounds potash used in the U.S. Most potash used metric ton. In 2008 potash prices are of potassium in combination with in the U.S. today, however, is imported already in excess of $500 per metric ton. magnesium, sodium, chloride, sulfate, and from Saskatchewan, Canada. nitrate. Potash is used directly or indirectly Imports from Canada, Belarus, and History of Potash Production in by everyone every day because it is an Russia, declining reserves and grades, New Mexico essential element in plant and animal life. and increasing mining, transport, and Potash was originally leached from heated Most potash is used in fertilizer (potassium environmental costs have caused a decline pots of wood ash, hence the name. Large- is the “K” in the “NPK” fertilizer rating, in the number of potash producers in scale potash use started in Germany in along with nitrogen, N, and phosphorus, 1859. The United States potash industry P). Therefore, potash markets closely was initiated during World War I as the parallel agricultural supply and demand. result of a German embargo that drove The remainder is used in chemicals and prices above $450 per metric ton. Wartime pharmaceuticals, salt substitutes, soap, potash (used in the manufacture of matches, glass, and storage batteries. gunpowder) was produced at more than a New Mexico potash production is in an hundred plants throughout the U.S., each area that covers about 425 square miles with very small output. The bedded potash southeast of Carlsbad and southwest of deposits in Eddy County, New Mexico, Hobbs. This area of shallow, high-grade were not discovered until 1925. ore was designated the “Potash Area” in The first commercial potash from New 1934 by the Secretary of the Interior. It Mexico was shipped in March 1931. lies within a larger 58,000 square mile area A 20-mile railroad spur from Carlsbad underlain by lower-grade potash minerals. was run to the mine and later to other The Potash Area includes both state and Sylvite (photo courtesy of Dennis Tasa) operations. By 1934 eleven companies federal lands that are managed by the were exploring for potash in southeast Bureau of Land Management. Mineral New Mexico, from seven in 1985 to two New Mexico. In 1936 Union Potash & leases are available only through competi- in 2008. The average sylvinite ore grade Chemical, Texas Potash, Independent tive bidding, and the area is protected from in New Mexico has decreased from 25–30 Potash & Chemical, New Mexico Potash, most oil and gas development. The Waste percent potassium oxide in the 1950s to and Carlsbad Potash merged into what is Isolation Pilot Plant (WIPP) for nuclear about 14 percent today; langbeinite ore now Mosaic and began producing mainly waste storage is on the southeast edge now averages 8–10 percent potassium sylvinite and langbeinite in 1940. of the Potash Area. Commercial potash oxide. But even at current extraction rates Potash was discovered in Saskatchewan, is produced primarily in Eddy and Lea the potash reserves in the state’s Potash Canada, by New Mexico potash companies Counties, which contain the three mines Area should last for decades, and recent in 1952. Many factors prevented major and four plants operated today by two advances in processing may extend this production until the late 1950s, with companies, Mosaic Potash and Intrepid significantly. exports to the United States commencing Potash. Taxes and other benefits such as employ- in 1962. In 1964 U.S. consumption per- Potash production in New Mexico is 70 ment in a rural area are substantial. From manently exceeded domestic production. percent sylvite and 30 percent langbeinite. 2000 to 2004 annual severance taxes on The maximum New Mexico production New Mexico is in fact the only producer New Mexico potash production averaged was 2.84 million metric tons of potassium of langbeinite in the world. New Mexico $3,318,652 and nearly a thousand people oxide in 1966–67; production then ranked eighth in world potash production were employed in the potash industry. decreased steadily as lower-cost Canadian in 2006 at 825,000 metric tons of potas- Regional payroll attributable to potash was potash imports eventually exceeded sium oxide. In that same year the state about $300 million. Prices were $290 per domestic production in 1971. Canada accounted for 77 percent of U.S. potash metric ton in 2006, significantly higher Published by the New Mexico Bureau of Geology and Mineral Resources • A Division of New Mexico Tech Potash Production and further cleaned by leaching halite Today (sodium chloride) with water. Some associ- Abundant lower-grade ated minerals, such as kieserite (a hydrated reserves exist in magnesium sulfate) and polyhalite, are southeastern New carried over as contaminants. As the high- Mexico, but high- grade ores are depleted, mixed sylvinite- grade potash is nearly langbeinite ores and langbeinite-kieserite depleted. Langbeinite ores have to be mined and processed. (potassium-magnesium Technology for efficient separation of these sulfate) and sylvinite minerals is unavailable, and some of the (sylvite and halite) valuable minerals are lost to tailings. are the major potash Salt and clay tailings in the Potash minerals mined. Area are stockpiled and monitored for All mines in the salt leakage. Waste brine is evaporated in Potash Area are impoundments or flows into local natural underground. The lakes where it is harvested. Methods for room-and-pillar mines are relatively clean, dry, and orderly, because the beds are laterally extensive and nearly flat. Each mine has at least two or three shafts for safety The Secretary of the Interior’s Potash Area (in pink), also referred to and ventilation. Mines as the Known Potash Leasing Area, Potash Enclave, or Carlsbad Potash are connected under- District. The Waste Isolation Pilot Plant was removed from the Potash Area, and no potash mining or petroleum drilling is allowed there. ground, and working faces are now 6 miles nationalized potash in the mid-1970s, and or more from the main shaft. Heavy American owners were bought out. Thus machines known as “continuous miners” remove softer potash beds as thin as 4 feet. Sylvinite ores from underground mines are began the long decline of the domestic crushed and ground in saturated brine. Clay potash industry, as these American compa- The harder langbeinite is broken with minerals are removed in several stages, and solid- nies were left with higher-cost, lower-grade ammonium nitrate and fuel oil explosive. liquid mixture (pulp) is treated with chemicals domestic production. The International Mechanical loaders, underground crush- that render sylvite surfaces hydrophobic Trade Commission forced an antidumping ers, subsurface conveyor belts, and hoists (water-repellent). Air is then injected into the send potash to the surface. Room-and- pulp and sylvite floats to the surface and is thus agreement with Canadian producers in separated from halite, which sinks. The froth is 1988, to prevent them from selling below pillar mining removes 60–75 percent of then skimmed off with paddles to obtain sylvite cost. This led to increased prices, which the potash. Subsequent pulling of support concentrate. The red color is from occluded iron kept Horizon Potash in operation until pillars increases yields to over 90 percent. oxide minerals in sylvite. Tailings, mostly halite, 1996 and led to reactivation of Mississippi Potash plants use a combination of are stockpiled in tailings dams. Chemical in 1988. fines separation, flotation, heavy-media, leaching, and crystalliza- returning tailings to the mine are being tion circuits designed for studied, but they are costly. a specific sylvinite ore. Potash minerals are also recovered from Fine-grained potash ores the Dead Sea in Jordan and from Great are processed by froth Salt Lake in Utah by solar evaporation and flotation in saturated separation of the salt mixtures by flotation. brine where sylvite is In Michigan and Canada sylvite is recov- preferentially floated. Clay ered from deep-seated orebodies and from minerals in the potash ore mines with water infiltration problems by adsorb flotation reagents, in situ solution mining. Depleted conven- which increases cost and tional mines have also been successfully reduces recovery. Ores converted to solution mining for residual with clay content greater potash recovery, as at the Intrepid potash than 5 percent or very operation near Moab, Utah. Planned con- A “continuous miner” at the Intrepid underground version of the Eddy Potash mine in New potash mine. The drum-like cutter head to the right fine-grained potash are treated by an rotates as it moves into the potash ore. The broken ore energy-intensive cyclic process of dis- Mexico to a solution mining operation is in drops into the hopper below to be pulled onto a con- solution in hot brine, solution purifi- the permitting phase. veyor belt that brings ore to the rear of the miner for cation, and vacuum recrystallization. hauling to the hoist and plant. The reddish potash in the walls and ceiling show tool marks from the cutter Langbeinite ores are concentrated head. Photo courtesy of Jim Lewis of Intrepid Potash. by gravity separation in coarse sizes new mexico earth matters 2 summer 2008 The Future of New Mexico Potash The potash industry has been subject to oversupply worldwide. This glut has been buffered mainly by withheld Canadian production (they have until recently produced only 60 percent of their capacity) intended to keep prices high by limiting supply. This is changing as Brazil, Russia, China and India become major potash consumers. The emergence of India and China as major economies trading on world markets has led to significant balanc- ing of potash supplies, with the caveat that increased prices will bring increased supply.
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