Intrepid to up 2024 potash output 10-15pc

  • : Fertilizers
  • 24/03/08

US fertilizer producer Intrepid Potash plans to increase its output this year by 10-15pc after seeing a large decline in 2023.

Intrepid last year produced 224,000 short tons (st) of potash, down by 17pc from 2022, and during the fourth quarter of 2023 produced 79,000st, down from 25pc in the fourth quarter of 2022. The declining trend was the result of higher producing costs and lower potash prices, but the company expects the spring application season to increase demand. The failure of an extraction well in New Mexico was also attributed to the output decline and is currently being replaced.

After this year's planned 10-15pc increase, the company plans an additional 10-15pc increase in 2025.

"Market potash pricing has also recently stabilized at levels that are 35pc higher than the previous cycle, and we expect our sales to remain steady ahead of spring applications," said to Intrepid chief executive Robert Jornayvaz.

Intrepid expects to sell 65,000-70,000st of potash in the first quarter of 2024. The producer sold 45,000st during the fourth quarter, down by 10pc from the fourth quarter in 2022, and sold 258,000st in 2023, up by 16pc from 2022.

Total sales for the fourth quarter were $56.7mn, down from $66.7mn a year earlier. Full year 2023 sales were $279.1mn, down from $337.6mn a year earlier. Intrepid posted a net loss of $37.3mn for the fourth quarter, compared with a net profit of $4mn a year earlier.

Capital expenditures for 2023 were on the lower end of Intrepid's guidance at $65.1mn while 2024 spending guidance will range from $40mn-50mn. The slowdown in spending will be a result of the company focusing to complete projects such as the HB Solution Mine and the Intrepid South sand project in New Mexico and the Brine Recovery Mine in Utah.

"Our growth capital is focused on improving the production rates at our solar solution potash assets, which on a combined basis, have had a declining production profile since 2017," the company said.


Related news posts

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

24/05/23

USDA to invest $83mn in fertilizer projects

USDA to invest $83mn in fertilizer projects

Houston, 23 May (Argus) — The US Department of Agriculture (USDA) plans to invest $83mn to build out fertilizer production plants, modernize equipment and adopt new technologies in 12 states. The grants are part of the USDA's Fertilizer Production Expansion Program (FPEP) aimed at boosting domestic fertilizer production, increasing competition and lowering costs for farmers. Around $25mn will be granted to a food waste upcycling facility in Jurupa Valley, California, to produce organic fertilizer. Nearly 90 market participants in the area will be supplied by the 11,400 tons of fertilizer produced annually at this facility. Cog Marketers, in partnership with AgroLiquid, is expected to produce 2mn USG of fertilizer a year at its Lake City facility in Florida with a $4mn grant from the USDA. Around 200 fertilizer retailers in the Mid-South region would receive product from this facility. Return will receive $4mn to expand production at its Northwood facility in Iowa. Other grants were awarded to projects in California, Florida, Hawaii, Iowa, Illinois, Kansas, Kentucky, Minnesota, North Carolina, North Dakota, Oregon and Washington. So far, FPEP has supplied 29 states with $251mn for increased domestic fertilizer production, with the last round of awards announced in March and January . About $649mn are left from the $900mn the administration of President Joe Biden committed to domestic fertilizer funding through FPEP in 2022. The FPEF was started in response to rising fertilizer prices caused by a variety of factors including the war in Ukraine. By Meghan Yoyotte Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Alabama Demopolis lock reopens early


24/05/22
24/05/22

Alabama Demopolis lock reopens early

Houston, 22 May (Argus) — The failed Demopolis Lock, at the intersection of the Tombigbee Waterway and Black Warrior rivers in Alabama, has reopened two weeks earlier than projected. The lock reopened on 16 May, ahead of the scheduled 30 May opening . Vessels carrying commodities such as asphalt, coal, petcoke, metals and fertilizers have been able to pass through the lock without a long queue since the reopening, according to the US Army Corps of Engineers. The lock had been closed since 16 January when the concrete sill underneath the lock doors failed. The lock was largely rebuilt over the ensuing four months Traffic that would typically pass through the lock was rerouted during the closure. Multiple steel mills in Alabama and Mississippi move some of their feedstock and finished product through the Demopolis lock. Those mills have 8.16mn short tons (st)/yr of flat, long, semifinished and pipe steel production capacity. By Meghan Yoyotte Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Porto de Pelotas retoma operações


24/05/21
24/05/21

Porto de Pelotas retoma operações

Sao Paulo, 21 May (Argus) — O porto de Pelotas, um dos três mais importantes do Rio Grande do Sul, retomou as operações nesta terça-feira. A movimentação de carga estava suspensa desde o início de maio, uma vez que as fortes chuvas que atingiram a região no fim de abril causaram a maior enchente na história do estado. O porto de Rio Grande, o maior do estado e um dos mais relevantes para grãos e fertilizantes no Brasil, continua operando normalmente. O Rio Grande não suspendeu as operações em nenhum momento, mas reduziu a movimentação de carga nas últimas semanas. Por questões de segurança, a autoridade portuária reduziu o calado para 12,8 metros nos terminais da Bunge, Bianchini e Termasa/Tergrasa. O porto de Porto Alegre suspendeu as operações em razão do nível do lago Guaíba ter alcançado 4m, ficando 1m acima do nível de inundação, de acordo com a Defesa Civil do estado. Há 77 trechos de 46 rodovias no Rio Grande do Sul bloqueadas parcialmente ou totalmente, incluindo estradas, pontes e balsas. Desde o início das enchentes, 464 cidades foram impactadas, afetando cerca de 2,4 milhões de pessoas. Os alagamentos deixaram 161 mortos, 85 desaparecidos e mais de 581.600 desalojados. Por João Petrini Envie comentários e solicite mais informações em feedback@argusmedia.com Copyright © 2024. Argus Media group . Todos os direitos reservados.

Brazil's Pelotas port resumes operations


24/05/21
24/05/21

Brazil's Pelotas port resumes operations

Sao Paulo, 21 May (Argus) — Brazil's Pelotas port, one of the three main ports in flood-swept southern Rio Grande do Sul state, resumed operations on Tuesday. Cargo handling had been suspended since the beginning of May as heavy rains hit the region in late April and caused the biggest flood in the history of the state. The port of Rio Grande, the largest in the state and one of the most relevant for grains and fertilizers in Brazil, continues to operate normally. Rio Grande did not suspend operations at any time during the floods, but cargo handling slowed in recent weeks. For safety reasons, the port authority reduced the draft to 12.8 meters (42ft) at the Bunge, Bianchini and Termasa/Tergrasa terminals. The port of Porto Alegre has suspended operations because Lake Guaiba's level is at 4m, 1m above its flood level, according to the state's civil defense. There are 77 stretches of on 46 highways in Rio Grande do Sul totally or partially blocked, including roads, bridges and ferries. Since the floods began, 464 cities have been impacted, affecting around 2.4mn people. The floods have left 161 people dead, 85 missing and over 581,600 people displaced. By João Petrini Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Japanese bank Mizuho boosts support for H2, ammonia


24/05/17
24/05/17

Japanese bank Mizuho boosts support for H2, ammonia

Tokyo, 17 May (Argus) — Japanese bank Mizuho Financial aims to provide ¥2 trillion ($12.8bn) in financial support for domestic and overseas cleaner fuel projects by 2030 to support Japan's plan to build a hydrogen supply chain. Private-sector Mizuho is offering financing to low-carbon hydrogen, ammonia and e-methane projects related to production, import, distribution and development of hydrogen carriers. Mizuho said it has in the past offered project financing for large-scale overseas low-carbon hydrogen and ammonia manufacturing projects, as well as transition loans. Japan is focusing on cleaner fuel use in the power sector and hard-to-abate industries, as part of its drive to reach net zero CO2 emissions by 2050. Japanese firms are getting involved in overseas hydrogen projects because domestic production is bound to be comparatively small and costly. They are looking to co-fire ammonia at coal-fired power generation plants to cut CO2 emissions and examining use of the fuel as a hydrogen carrier . Japanese companies have also partnered with several overseas firms on e-methane. Mizuho has to date offered $1bn for cleaner fuel projects. The bank has set a goal to accelerate the setting up of a clean fuel supply chain by addressing the financial challenge faced by projects requiring large investments. Mizuho has attempted to help Japan's decarbonisation push by tightening biomass and coal financing policies. Mizuho has also stopped investing in new coal-fired power projects, including existing plant expansions. The bank has a plan to reduce the ¥300bn credit available for coal-fired power development projects by half by the April 2030-March 2031 fiscal year and to zero by 2040-41. By Nanami Oki Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more