The Ochoa Project is located in southeast New Mexico, a highly industrial region in the United States. Southeast New Mexico has a long history of producing potash from mines currently owned by two large producers, The Mosaic Company and Intrepid Potash, and contains the largest known concentration of potash reserves in the United States.
The United States potash industry was initiated during World War I as the result of a German embargo that drove prices above $450 per metric ton. At the time, the United States government mandated the Bureau of Land Management to find a domestic source of potassium based salts (potash) to ensure United States security of supply. As a result of this initiative, the potash deposits in Eddy County, southeast New Mexico, were discovered in 1925 and the first commercial production occurred in 1931.
New Mexico accounts for more than 77% of potash produced in the United States and approximately 19% of the potash used in the United States. This translates into significant tax revenues for the state and employment for New Mexican residents. For this reason, New Mexico is a leading state in terms of expertise related to the construction, operations, and processing of potash.
IC Potash's Ochoa project is located directly southeast of this historic potash region, referred to as the "Known Potash Leasing Area". This provides IC Potash with excellent access to infrastructure and skilled labour.