Prospect Global Resources Inc. (NASDAQ: PGRX) (“Prospect Global” or the “Company”) previously announced that it has received its Air Quality Control Permit (“Air Permit”) for the construction and operation of a 2.2 million ton per annum underground potash mine and surface processing facilities from the Arizona Department of Environmental Quality (“ADEQ”).
The Company comments:
What is the significance of the Air Permit?
For a mine of this type, this is one of the most difficult permits to obtain for a project of our magnitude. To our knowledge, we stand alone amongst US greenfield Potash projects by obtaining this Air Permit.How does this differentiate PGRX from other Potash miners? On a global basis, in our opinion, this puts our Holbrook project at the forefront of greenfield mines to come into production. How did this process compare to a federal process? In Arizona, the EPA has delegated its authority to ADEQ with respect to minor source air permits such as this one. Given the design of the project and a commitment to reduced emissions, this allowed us to save a significant amount of time over a typical permitting process. Where does this position the Company from here? As is typical for most mining companies, major permitting is always seen as a major cost and schedule driver. In our view this removes much of the permitting risk as this permit is often seen to complicate other projects’ developments. What other permits are on the horizon? The other major permits still necessary are (i) the Aquifer Protection Permit and (ii) the longterm mineral lease with the Arizona State Land Department. As a Summary from the prior announcement, the Air Permit is for the emissions from a 2.2 million ton per annum, two train processing plant and related mine production as contemplated by the Company’s Preliminary Economic Assessment released in December 2011. Prospect Global is continuing to evaluate building only one of the two processing trains and related mine output with correspondingly reduced emissions as analyzed in the Company’s Pre-Feasibility Study.
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