Carlsbad Current-Argus (LOCAL NEWS)
December 2, 2003

Mine gets top safety award
 - By Jason P. Montoya: Current-Argus Staff Writer

CARLSBAD – Intrepid Mining LLC, the potential owner of Mississippi Potash’s mines, says the company hasn’t completed plans for the local operations.

Hugh E. Harvey, owner and manager of the company, said the company’s decision to purchase the mining facilities was largely based on similarities between potash mining in Carlsbad and Intrepid’s potash mining operations in Moab, Utah.

“There is a lot of commonality of technology and geology between Carlsbad’s potash operations and our existing operations in Utah,” he said.  “It fits our expertise from a technology and marketing standpoint.”

Robert P. Jornayvaz, also an owner and manager of Intrepid, said the limited number of potash operations in the United States made the availability of the Carlsbad facilities an attractive opportunity.

Intrepid owns and operates Moab salt LLC potash and salt solution mining operation near Moan, Utah.  Intrepid purchased the Moab facility in 2000.

Jornayvaz said Intrepid has greatly increased the production of its Moab mining facility since it was acquired.

“When we bough the Moab operations, it was in a shutdown.  We have tripled production since buying the facility,” he said.

Jornayvaz said Intrepid Mining has spent nearly $10 million in capital improvements at the facility.  In addition, he said, the company has hired several employees at the Moab mine, which now employs nearly 70 workers.

Last year, the Moab mine drilled the first horizontal potash cavern in the world – using oil and gas drilling technology, Jornayvaz said.

“We pride ourselves on looking for creative opportunities to make a profitable operation,” he said.

The purchase of the Carlsbad area mines would greatly increase the size of Intrepid’s mining operations.

Mississippi Potash currently employs nearly 400 workers at its two operating Carlsbad-area mines.

Jornayvaz admitted the purchase would be a major investment for Intrepid.

“We have been preparing for awhile and are ready for it,” he said.

Intrepid intends to keep the Carlsbad mines open and operating, Jornayvaz said.

“We are a potash company first.  That is very much our intention,” he said.

Harvey said Intrepid is formulating a plan for the Carlsbad facilities.

He said the company has not made any plans regarding and expansion or reduction in workforce.

“We haven’t had an opportunity to do a full evaluation of the facility,” he said.

Jornayvaz said some events still need to happen before Intrepid becomes the new owner of the Carlsbad mines.  The U.S. Bankruptcy Court will have to approve the sale.  Then, the mines are auctioned off to the highest bidder.

“Our purchase of the facility is not necessarily a given,” he said.  “Assuming we are the high bidder, we will get it.”

According to a press release from Mississippi Chemical Corp., the estimated purchase price of the mines will be about $27 million.

Intrepid Mining LLC is one of the Intrepid Companies, which also includes Intrepid Oil and Gas LLC was established in 1996.

Mississippi Chemical announced the agreement to sell its Carlsbad holding on Monday.

“The disposition of our potash mining operations is in furtherance of our objective to de-leverage and reorganize the company as quickly as possible,” Charles O. Dunn, president and chief executive officer of Mississippi Chemical, stated in a press release.

Mississippi Chemical, along with its domestic subsidiaries, filed for reorganization under Chapter 11 bankruptcy in May 2003.

In June, Mississippi Chemical temporarily shut down its two Carlsbad area mining facilities, which are known as the West Mine and East Mine, as well as operations in Yazoo City, Miss.

The shutdown included the furlough of 378 employees in the Carlsbad area.

Mississippi Chemical Corp. reported that the 378 employees had returned to work by the beginning of November.