Capital Projects

We operate in a capital-intensive industry that requires consistent capital expenditures to replace assets necessary to sustain safe and reliable production. We believe that, in the long term, demand for potash will remain at, or exceed, historical levels; therefore, we have developed an investment plan at each of our facilities to maintain safe and reliable production, ensure environmental and regulatory compliance, improve and modernize equipment, increase reliability of the facilities, and increase productivity and recoveries.

The goal of these investments is to grow production and decrease per ton production costs while also increasing the flexibility of our production mix to support our marketing efforts. We plan to continue executing and accelerating, when appropriate, our capital strategy which is focused on additional granulation capacity, additional mining capacity, and recovery improvement projects. Our strategy to increase granulation capacity is being undertaken for both potash and Trio®.

We successfully completed the construction of a new compactor at Moab in 2010. In October 2011, our Board of Directors approved plans for additional compaction capacity at our North facility and we began construction on a new compaction facility at our Wendover facility during 2011. Our Langbeinite Recovery Improvement Project also includes a granulation plant that is designed with the capacity to granulate all of our standard-sized TRIO® into a premium granular product. As we continue to invest in our facilities, we seek to deploy capital while maintaining sufficient cash on the balance sheet to react strategically to market conditions.

	HB SOLAR SOLUTION MINE Located roughly 20 miles northeast of Carlsbad, the HB Solar Solution Mine Project would use solution mining and solar evaporation to extract potash...		NORTH COMPACTION PROJECT We are proceeding with construction of a new compaction plant to replace our current compaction facility at the North plant...
	MOAB SOLUTION MINING WELLS Intrepid continuing to evaluate additional solution mining opportunities at our Moab facility...		LRIP GRANULATION PLANT As part of Intrepid’s Langbeinite Recovery Improvement Project, we are adding granulation capacity to our Trio production stream that will allow...