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New mine could bring 5,000 jobs
http://www.scarborougheveningnews.co.uk/news/business/new_mine_could_bring_5_000_jobs_1_2939095
Published on Tue Jan 18 10:36:19 GMT 2011
MINERAL rights between Scarborough and Whitby have been sold in a move which could lead to the opening of the first UK Potash mine in 40 years and the creation of up to 5,000 jobs.
Sirius Minerals has completed a deal to buy York Portash and now holds mineral rights on 600 sq km of land on the coast.
The company, which specialises in potash exploration and development and has three potash projects in Australia and the USA, is now set to undertake test drilling and seismic surverys in the area.
Sirius says exploration work will be carried out to determine the potential for a new potash mine between Scarborough and Whitby, which bosses believe could create 1,500 development and construction jobs and 1,000 operational jobs in the mine, as well as supporting hundreds more in the supply chain.
The project is still in its early stages but if it goes ahead Sirius estimates agricultural potash, which is a powdery salt used in fertilizers, could be extracted from the new mine for the next 50 years.
Chris Fraser, who founded York Potash last year and is now managing director and chief executive of Sirius, said: “Demand for potash is undergoing significant growth. Potash is an essential component in the fertilizers that we all rely on for cost effective food production.
“The York Potash project, subject to successful testing, could become a new and strategically important potash mine for the UK.
“This will help the UK to meet its own needs, giving it security of supply and, importantly, creating a project of local, regional and national economic significance.
“This is just one step on a longer journey but we are confident that our vision for a high-quality, modern and efficient potash mine in North Yorkshire can be achieved and would deliver an asset of true national importance.”
Scarborough MP Robert Goodwell welcomed the news.
He said: “This is absolutely brilliant news as this investment could create one of Scarborough’s largest employers.
“We have been saying there will be private sector jobs that come and replace some of the losses in the state sector and this could see that happening in Scarborough with thousands of jobs.
“This is the best possible news, however we will have to bear in mind the delicate environment in North Yorkshire and take precautions to protect it.”
The UK is currently only served by the Boulby Mine, which is also in North Yorkshire and is operated by Cleveland Potash Limited.
Sirius say subject to successful completion of the exploratory and surveying work, it is anticipated that details will be developed for a suitable extraction point and mine head with accompanying infrastructure.
Planning permissions will then be sought with a view to making the York Potash project operational “as soon as is practically possible”.
The project’s proposed exploration area would extend approximately between Scarborough and Whitby across the 600 sq km land allocation.
However no timetable has been set for submission of a planning application to Scarborough Council to develop the mine nor for the intended start of mining operations.
Directors’ Dealings - Very good news.
http://www.siriusminerals.com/directors%e2%80%99-dealings/
For immediate release: 18 JANUARY 2011
Sirius Minerals Plc
(“Sirius” or the “Company”)
Directors’ Dealings
The Board of Sirius Minerals, the globally diversified potash mining company, was notified on 17 January 2011 that Andrew Lindsay, Chief Financial Officer and Finance Director of the Company, purchased 582,352 ordinary shares in the Company at an average price of 17 pence per share on 17 January 2011. Mr Lindsay now holds a total of 582,352 ordinary shares in the Company representing 0.07% of the Company’s issued share capital.
For further information, please contact:
Sirius Minerals Plc
Chris Fraser
(MD & CEO) Tel: +44 7582711382 or+61 404073288 Richard Poulden
(Deputy Chairman) Tel: +971 504 524 994
NOMAD Joint Brokers Media Enquiries
Beaumont Cornish Limited (Nomad) XCAP Securities Plc Daniel Stewart & Company Plc Gth Media Relations
Roland Cornish John Grant, Karen Kelly, David Newton Christopher Theis / Emma Earl Toby Hall/Christian Pickel
Tel: +44 207 628 3396 Tel: +44 20 7101 7070 Tel: + 44 20 7776 6550 Tel: + 44 20 3103 3903
About Sirius Minerals Plc
Sirius Minerals is a globally diversified potash development company. Its primary focus is to bring on stream major potash mining facilities through the acquisition and development of projects overlying recognized potash deposits. Today it holds properties in the United Kingdom (Yorkshire), North America (North Dakota), and Australia (Queensland and Western Australia).
The Company is additionally progressing ongoing Research and Development initiatives into the secondary uses of salt and potash beds for energy storage and carbon dioxide sequestration.
Incorporated in 2003, Sirius Minerals’ shares are traded on the London Stock Exchange’s AIM market. Its shares are also traded in North America on the OTCQX through the use of a sponsored ADR facility. Further information on the Company can be found at http://www.siriusminerals.com/
Presentation 17 Jan 2011 - Building Blocks Complete
http://www.siriusminerals.com/investors/company-presentations/
The Team
Sirius Minerals plc is the company behind the York Potash Project. Sirius Minerals is a publicly-listed, UK potash explorer and developer with its HQ in London and four major potash projects around the world.
We are the only leading globally diversified potash explorers in the world. The strength of our reputation is based on our large team of exceptional, highly-qualified and experienced individuals. Our people combine global expertise with first-hand local knowledge and experience of the unique and highly-sensitive environment in North Yorkshire.
As an organisation we are committed to sustainability, rigorous health and safety, the training and development of our people and to the communities where we work. We are aiming to forge a long-standing mutually beneficial partnership with the people of North Yorkshire that will bring economic prosperity to the area for generations to come.
To find out more about Sirius Minerals plc, click here to visit our website.
http://www.siriusminerals.com/
Our professional advisers
Our own skilled team is being backed by some of the UK’s leading professional advisers on the range of disciplines required, including issues such as geology, mine engineering and planning.
Preliminary Timeline
During 2011, we will work with the relevant authorities, landowners and the local community to pursue the necessary consents and notifications to carry out our exploration work. At all times we will remain committed to sustainability and ensure that our impact on the environment is kept to an absolute minimum.
Sirius Minerals - York Potash Project website.
http://www.yorkpotash.co.uk/index.php?option=com_content&view=frontpage&Itemid=2
Welcome to the York Potash Project website.
The York Potash Project presents an exciting opportunity for North Yorkshire and is strategically important for the future of agriculture and the wider economy in the UK. In a nutshell, the project will involve detailed explorations which will seek to find out whether a new, world-class potash mine is a viable proposition in the area. Ultimately the project has the potential to create significant jobs, boost the local and the national economies and ensure the supply of a material vital for the future of UK agriculture for generations to come.
This website has been set up to bring you all the latest information on the project and to set out how we will work in partnership with the local community and relevant stakeholders. Crucially, it exists to give you the opportunity to tell us what you have to say in response to our plans.
Your feedback and (we hope) support will help us to shape our vision and is vital in ensuring the success of this nationally important project. Please feel free to get in touch; we look forward to hearing from you.
More about the Project
Farmers use potash to replace potassium in soil to maintain good crop yields and strong harvests – a critical requirement at the moment as we face growing global food demand and rising prices in the UK. In addition to exporting to worldwide markets, it makes sense both in environmental and economic terms to have a secure and plentiful supply of this vital raw material in the UK rather than relying on imports and fluctuations in the global market.
Large deposits of potash have been known to exist in North Yorkshire for many years and potash mining has been part of the area’s way of life since the 1970s, providing jobs for local people and boosting the region’s economy.
If our research and exploration confirms that there are further large deposits of potash in North Yorkshire, then the York Potash Project has the potential to help supply the potash needed in the UK, as well as export internationally, for the next 50 years or more.
Following early initial evaluation, we are now ready to begin the process of exploring for mineral deposits. This will involve fresh analysis of existing information and the gathering of new data to improve our understanding of the potential for a new potash mine in the area.
Throughout the lifetime of the York Potash Project we will be committed to working in partnership with the community, relevant authorities such as the North York Moors National Park Authority, Scarborough Borough Council and North Yorkshire County Council and wider stakeholders including landowners.
Acquisition of York Potash Ltd and CEO appointment
http://www.siriusminerals.com/acquisition-of-york-potash-ltd-and-ceo-appointment/
For immediate release: 17 JANUARY 2011
Sirius Minerals Plc
(“Sirius” or the “Company”)
Acquisition of York Potash Ltd and CEO appointment
The Directors of Sirius Minerals Plc (AIM: SXX, OTCQX: SRUXY), the globally diversified potash development group, are pleased to announce:
* the acquisition of York Potash Ltd; and
* the appointment of York Potash’s founder, Chris Fraser, as Managing Director and Chief Executive Officer of Sirius.
YORK POTASH ACQUISITION
Key facts
* Various agreements in relation to mineral rights both onshore and offshore over approximately 600km2 between the towns of Whitby and Scarborough in England, UK;
* Situated in a known high grade potash region with existing operations on an adjacent property;
* Extensive historical data from previous potash and petroleum exploration in existence;
* Established as one of the world’s largest deposits of polyhalite at mineable depths;
* JORC Exploration Target1 of between 3.3 and 6.0 Billion tonnes of 67% to 94% polyhalite (19% to 27% K2SO4); and
* JORC Exploration Target1 of between 330 and 400 Million tonnes of 35% to 40% of potassium chloride (KCl).
1. See note A. These estimates of quantity and grade are conceptual in nature and there has been insufficient exploration to define a Mineral Resource on the property and it is uncertain if further exploration will result in discovery of a Mineral Resource on the Property reported to an AIM standard.
Sirius has acquired York Potash Ltd, a private UK company that has signed various agreements with major landowners in relation to extensive mineral rights covering more than 600km2 onshore and offshore between the towns of Whitby and Scarborough in North Yorkshire, England, where York Potash Ltd has been analysing the potential to develop a new world-class potash project (the “York Potash Project”). The mineral rights relate to all the evaporites including potash (sylvite), polyhalite, rock salt, and intermingled minerals beneath the agreement areas. The region also hosts the Boulby Mine which has been producing potash since 1973 and is known to host extensive deposits of high grade sylvite and polyhalite.
As consideration, 150 million new Ordinary Shares of 0.25p each in the Company (“New Ordinary Shares”) have been allotted (conditional on Admission to trading on AIM (“Admission”)) to the shareholders of York Potash Ltd in consideration for 100% of the issued share capital of York Potash Ltd which, at the closing price of 16.75 pence per share on 14 January 2011 this equates to £25.1 million (equating to total consideration of £25.3 million including the repayment of the loan set out below). Application will be made for the New Ordinary Shares, which will when issued rank pari passu with the existing Ordinary Shares in issue, to be admitted to trading on AIM; trading is expected to commence on 21 January 2011.
While the York Potash Project is still at the early stages of exploration and assessment, the Directors believe the potential of the project is significant. There has been an extensive amount of historical potash and petroleum exploration completed in the region since the 1960’s. York Potash has analysed over 97,000 metres of drilling data and a significant amount of historical reports relating to the region’s geology.
A JORC Exploration Target of between 3.3 and 6.0 Billion tonnes of 67% to 94% polyhalite (19% to 27% K2SO4)1 has been established for the currently contracted area within the York Potash Project. This estimate establishes the project as having one of the world’s largest deposits of polyhalite at mineable depths.
This estimate has been prepared based on a five (5) metre “extraction” section from a >10 metre very consistent seam of relatively high purity polyhalite. This is from within the basin wide 10 to 50 metre thick polyhalite sequence intersected by numerous historical drillholes. Allowances have been made for urban areas and known areas of major fault and dyke disturbance. The base of the polyhalite sequence is expected to be in the order of 1,600m to 1,700m depth below the surface.
In addition, a JORC Exploration Target of between 330 and 400 Million tonnes of 35% to 40% potassium chloride (KCl)1 has been established for the currently contracted area within the York Potash Project. This estimate has been defined on the basis of similar characteristics from the drillholes already drilled in the area and what has been mined at Boulby. Allowances have been made for urban areas and major faulting.
1. See Note A. These estimates of quantity and grade are conceptual in nature and there has been insufficient exploration to define a Mineral Resource on the property and it is uncertain if further exploration will result in discovery of a Mineral Resource on the property reportable to an AIM standard.
Polyhalite is a potentially valuable source of Sulphate of Potash (“SOP”) or potassium sulphate which has the chemical symbol of K2SO4. SOP is a highly sought after premium potash product which trades at a significant premium to conventional “potash”, being potassium chloride (KCl) or Muriate of Potash (“MOP”) products. Importantly, SOP does not contain chlorine which limits certain applications of MOP as a fertiliser.
The Company is now working with its advisers to rapidly progress the York Potash Project through the various stages of project studies needed to determine the technical, social and economic viability of the project. In addition Sirius intends to continue to secure mineral rights in the project area to provide the maximum exploration flexibility within the known extent of potash mineralisation.
The York Potash Project is near road and rail networks that potentially give the project access to the port of Teeside, which lies to the north, and the port of Immingham, which lies to the south. Part of the project analysis will be to assess how best to access the existing infrastructure to efficiently access both domestic and international potash markets.
Founded in 2010, York Potash Ltd has yet to submit formal accounts. According to the latest management accounts of York Potash Ltd, as at 11 January 2011 York Potash Ltd had Net Liabilities of approximately £144,000 and had incurred an operating loss of approximately £362,000 for the period to 11 January 2011. The liabilities of York Potash Ltd included a loan of £176,385 from an entity related to Chris Fraser which is to be repaid as part of the acquisition.
Following the issue of the New Ordinary Shares as set out above, the total number of shares in issue will be 878,106,602. Therefore the total number of Ordinary Shares in the Company with voting rights will be 878,106,602.
The above figure of 878,106,602 Ordinary Shares may be used by shareholders in the Company as the denominator for the calculation by which they will determine if they are required to notify their interest in, or a change to their interest in, the share capital of the Company under the Financial Service Authority’s Disclosure and Transparency Rules.
APPOINTMENT OF MANAGING DIRECTOR AND CHIEF EXECUTIVE OFFICER
As part of the acquisition of York Potash Ltd, its founder, Chris Fraser, has been appointed Managing Director and Chief Executive Officer of Sirius Minerals Plc.
Christopher Neil Fraser (36) has approximately 16 years finance experience in the mining industry. During this time he worked at Citigroup (2000-2009), Rothschild (1998-2000), and KPMG (1995-1998) and has market leading expertise in all aspects of the financing and development of major mining projects. Having joined Citigroup in 2000, he was appointed Head of Metals and Mining Investment Banking for Australia in 2006 and Managing Director in 2008. In these roles he led the bank to become one of the leading investment banking franchises in the mining industry in Australia. In particular he was the lead adviser on the US$2.5 billion initial development capital financing for Fortescue Metals Group (FMG). He has provided strategic advice to many of the world’s leading mining companies including BHP Billiton, Rio Tinto, WMC Resources, and Paladin Energy.
In 2009 Chris Fraser founded Sigiriya Capital, a specialist advisory and investment house focused on the resources sector, and in 2010 founded York Potash Ltd to undertake the exploration and development of the York Potash Project.
Chris Fraser holds a Bachelor of Commerce degree from the University of Western Australia. He is a qualified Chartered Accountant and a member of the Institute of Chartered Accountants in Australia. In addition, he is a Senior Associate of the Financial Services Institute of Australia (FINSIA) and member of the Institute of Company Directors in Australia.
Directorships currently held or previously held in the last five years by Chris Fraser are as follows:
Current Former
Sigiriya Capital Pty Limited Iberian Resources Corp
York Potash Ltd
C&J Fraser Investments Pty Ltd
Panocean (China) Limited
Recursos Sigiriya Pty Limited
Li Jin Capital Pte Ltd
As a result of the York Potash acquisition, Mr Fraser now has a beneficial interest in 112,500,750 New Ordinary Shares of 0.25 pence in the Company. This beneficial interest is held through C & J Fraser Investments Pty Limited as trustee of The Fraser Family Trust. This holding represents 12.8% of the Company’s enlarged share capital.
Chris Fraser has entered into a service agreement with Sirius under which he has been appointed as the Managing Director and Chief Executive Officer of the Company with immediate effect. The appointment will continue until terminated upon three months notice in the first 12 months and thereafter six months’ written notice by either party. In addition, in the event that there is an effective change of control of the Company or the Company merges with another company which is not a group company, from the date the Change of Control takes effect the written notice to be given by the Company to terminate this appointment shall change to become not less than 12 months’ notice in writing. Mr. Fraser will initially be paid a base salary at the rate of £260,000 per annum.
Mr Fraser has been granted the following options over Ordinary Shares in connection with his appointment:
Number Exercise Price Expiry Date
10,000,000 GBP0.197 31 December 2013
The options will vest immediately upon issue.
There is no further information on Chris Fraser required to be disclosed under Schedule Two, paragraph (g) (i)-(viii) of the AIM Rules for Companies.
Chris Catlow, Chairman of Sirius, commented:
“Today marks a key date in the history of building Sirius as the New Potash Powerhouse. Not only are we significantly expanding our portfolio of major potash projects, we are also significantly strengthening the management team with Chris Fraser’s appointment as Managing Director.
“The York Potash Project has the potential to make Sirius one of the world’s most important suppliers of potash. With the potential to produce several millions of tonnes annually of Sulphate of Potash, the premium potash product, the York Potash Project could generate significant value for all stakeholders. Furthermore, the acquisition is fully aligned with our strategy of acquiring major projects overlying known potash targets in politically stable environments. The platform we now have for stakeholder value creation is very impressive and, we believe, unmatched by our peers.
“I am also delighted that Chris has agreed to join Sirius as our Managing Director and CEO – this is a key value-add aspect of the acquisition. Chris has proven entrepreneurial abilities in the resources industry and has a clear track record in raising large amounts of capital for major strategic project developments – not least for Fortescue Metals. He has the vision, energy, skills and experience to deliver significant value for Sirius and lead the Company into the future.”
For further information, please visit the Company’s website www.siriusminerals.com or the York Potash Project’s website at www.yorkpotash.co.uk. Alternatively please contact:
Sirius Minerals Plc
Chris Fraser
(MD & CEO) Tel: +44 7582711382 or+61 404073288 Richard Poulden
(Deputy Chairman) Tel: +971 504 524 994
NOMAD Joint Brokers Media Enquiries
Beaumont Cornish Limited (Nomad) XCAP Securities Plc Daniel Stewart & Company Plc Gth Media Relations
Roland Cornish John Grant, Karen Kelly, David Newton Christopher Theis / Emma Earl Toby Hall/Christian Pickel
Tel: +44 207 628 3396 Tel: +44 20 7101 7070 Tel: + 44 20 7776 6550 Tel: + 44 20 3103 3903
About Sirius Minerals Plc
Sirius Minerals is a globally diversified potash development company. Its primary focus is to bring on stream major potash mining facilities through the acquisition and development of projects overlying recognised potash deposits. Today it holds properties in the United Kingdom (Yorkshire), North America (North Dakota), and Australia (Queensland and Western Australia).
The Company is additionally progressing ongoing Research and Development initiatives into the secondary uses of salt and potash beds for energy storage and carbon dioxide sequestration.
Incorporated in 2003, Sirius Minerals’ shares are traded on the London Stock Exchange’s AIM market. Its shares are also traded in North America on the OTCQX through the use of a sponsored ADR facility. Further information on the Company can be found at www.siriusminerals.com.
NOTE A
Competent Person’s Statement and Risk Statement
The information in this Stock Exchange Announcement that relates to Mineral Exploration results and Exploration Targets, together with any related assessments and interpretations, have been verified by and approved for release by Dr Frederick W. Smith FIMMM., CEng, CSci., a qualified geologist and full-time employee of FWS Consultants Limited (“FWS”), Environmental and Geological Consultants. Dr Smith, who is a Fellow of the Institute of Materials, Minerals and Mining (IMMM), has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person for the purposes of the AIM Rules. Dr Smith and FWS consent to the inclusion of the information contained in this announcement and the respective references to them in the form and context in which they appear. The JORC Exploration Target estimates of quantity and grade are conceptual in nature and there has been insufficient exploration to define a Mineral Resource on the property and it is uncertain if further exploration will result in discovery of a Mineral Resource on the Property. The estimates are not a Reserve or Resource statement in accordance with an AIM recognised Standard and should not therefore be relied upon as such. It should be noted that the Pan European Code of Reporting or PERC (that IMMM co-wrote) released in December 2008 and JORC are essentially identical on all key aspects relating to compilation and quoting Exploration Targets.
Directorate Change – Andrew Lindsay appointed as FD and CFO
http://www.siriusminerals.com/directorate-change-%E2%80%93-andrew-lindsay-appointed-as-fd-and-cfo-2/
For immediate release: 17 JANUARY 2011
Sirius Minerals Plc
(“Sirius” or the “Company”)
Directorate Change – Andrew Lindsay appointed as FD and CFO
The Directors of Sirius Minerals Plc (AIM: SXX, OTCQX: SRUXY), the globally diversified potash development group, are pleased to announce the appointment of Mr Andrew Lindsay as Finance Director and Chief Financial Officer of the Company with immediate effect. Andrew Lindsay replaces Mr Jonathan Harrison who has retired from the Board.
Andrew Mark Lindsay, 48, has over 25 years of experience in the mining industry. Between 2003 and 2010 he was the Finance Director at European Nickel Plc during which time he oversaw its Admission onto AIM in 2004, which was accompanied by a £15million raise; its £84 million placing in 2006; and the US$50million acquisition of interests in Toledo Mining and Berong Nickel in 2008. In addition, Mr Lindsay initiated the agreement for US$325 million of project financing for its Caldag project in 2010. Prior to European Nickel, Andrew Lindsay held a series of business development and corporate finance management roles within the Anglo-American Group between1985 and 2002 based in the United Kingdom, South Africa, Australia and Chile.
Chris Catlow, Chairman of Sirius, commented:
“The Company has now made a major step change in its development with the acquisition of York Potash and the appointments of Chris Fraser as MD and CEO and Andrew as FD and CFO. With Chris and Andrew’s commitment and experience, Sirius will now rapidly increase its rate of progress in becoming a significant global potash producer.
“I would also like to personally thank Jonathan Harrison for the significant contribution he has made over the last six years in creating the exceptional potash asset base for the Company. We wish him well with his other business interests.”
For further information on the acquisition by Sirius of York Potash Ltd and the appointment of Chris Fraser as Managing Director and CEO, please see today’s separate announcement.
Directorships currently held or previously held in the last five years by Mr Lindsay are as follows:
Current Former
MinFin Limited European Nickel PLC ENickel Holdings Inc
Stratten Ltd ENickel Berhold Inc
European Nickel Spain SL Heraan Holdings Inc
European Nickel Holdings Iberia SL Asian Nickel Research and Technology Corporation
Sardes Nikel Madencilik AS Ozren Nickel doo Sarajevo
Gediz Ic Ve Dis Tic Ltd Sti Vardiste Nickel doo Zvornik
Turmad Madencilik Sanayi ve Ticaret AS
As part of the appointment, the Company has granted Mr Lindsay 4,000,000 options that can be exercised at 19.7pence per share. The options vest on 17th January 2012 and lapse on 31st December 2013.
Separately, the Company has granted 2,000,000 options to other members of the management team that have an exercise price of 19.7pence per share. The options vest on 17th January 2012 and lapse on 31st December 2013.
There is no further information on Mr Lindsay required to be disclosed under Schedule Two, paragraph (g) (i)-(viii) of the AIM Rules for Companies.
For further information, please contact:
Sirius Minerals Plc
Chris Fraser
(MD & CEO) Tel: +44 7582711382 or+61 404073288 Richard Poulden
(Deputy Chairman) Tel: +971 504 524 994
NOMAD Joint Brokers Media Enquiries
Beaumont Cornish Limited (Nomad) XCAP Securities Plc Daniel Stewart & Company Plc Gth Media Relations
Roland Cornish John Grant, Karen Kelly, David Newton Christopher Theis / Emma Earl Toby Hall/Christian Pickel
Tel: +44 207 628 3396 Tel: +44 20 7101 7070 Tel: + 44 20 7776 6550 Tel: + 44 20 3103 3903
About Sirius Minerals Plc
Sirius Minerals is a globally diversified potash development company. Its primary focus is to bring on stream major potash mining facilities through the acquisition and development of projects overlying recognized potash deposits. Today it holds properties in the United Kingdom (Yorkshire), North America (North Dakota), and Australia (Queensland and Western Australia).
The Company is additionally progressing ongoing Research and Development initiatives into the secondary uses of salt and potash beds for energy storage and carbon dioxide sequestration.
Incorporated in 2003, Sirius Minerals’ shares are traded on the London Stock Exchange’s AIM market. Its shares are also traded in North America on the OTCQX through the use of a sponsored ADR facility. Further information on the Company can be found at www.siriusminerals.com.
Rundown on Potash: Exploratory Well Should Spud in Next Couple of Weeks (North Dakota, USA)
http://milliondollarway.blogspot.com/2010/10/rundown-on-potash-exploratory-well.html
Cut to the chase:
* This story has international interest. Since posting this story early Sunday morning (October 24, 2010), I have had an unprecedented number of "hits" from England and Scotland. I think the hits began with someone in Wales, who posted the link on the Sirius message board (thank you).
* The drive for potash, as a fertilizer, is being driven by the Chinese.
* A small portion of North Dakota sits on 33% of all the known potash reserves in the world.
* It is the same basin that allows Saskatchewan to produce 90% of all potash produced in North America.
* Dakota Salts LLC, a subsidiary of Sirius Minerals, London, England, got the first permit in decades to drill for potash in North Dakota.
* Sirius Minerals shares are considered a "penny stock." Shares have appreciated from 2 pence to 7 pence in last few months.
* The funding is being provided by a Chinese company.
* Schlumberger will drill the well. Spudding is expected to commence during the first week in November, 2010.
* The rig is being brought up from Mexico. There are a record number of rigs in North Dakota but they are all contracted to drill Bakken oil.
* The potash well will be a deep well (3000 meters) near Lignite, ND; to see aerial imagery, click here. (When you get to the link, draw a square around Burke County, upper left county in North Dakota. If you do it right, the town of Lignite will jump right out at you. To see aerial imagery, click on the "show layers" tab sitting at the very center on the far right; otherwise, everything should make sense; there is a tutorial if needed. You won't see the well, yet, but you're going to see how close the railroad is!)
* Once brought to the surface, best way to ship potash: railroad. Warren Buffett's railroad, the Burlington Northern Santa Fe, runs right through the middle of Lignite.
* Drilling for potash will use the same technology as drilling for Bakken oil (except no fracturing).
* Links for everything noted above will be found in the original blog below.
Most incredible dots:
* Schlumberger will do the drilling; and,
* Warren Buffett's railroad is right in the middle of this story.
ORIGINAL BLOG
The "potash well" you've been reading about in local newspapers should be spudded within the next couple of weeks.
If you are at all interested in another potentially huge story for the Williston Basin, take a look at these sites:
* CBS News, October 20, 2010: Potash Drilling in Northwest ND
* Washington Post, October 20, 2010: Same story
* Marketwire, August 16, 2010: Dakota Salts: Exploration Permit Granted
* Bloomberg Businessweek, August 16, 2010: ND Issues First Potash Permit in Decades
* Similar stories in the Fresnobee (Fresno, CA); The Street; The (London) Telegraph; San Francisco Chronicle, and others. This story obviously has international interest.
* Local -- Kenmare Website, May 4, 2010, ND: Dakota Salts With 6,000 Acres; Goal: 30,000 Acres
* Wikipedia entry for Lignite, North Dakota (economy) has been updated (by me)
Remember my post regarding the Warren Buffett connection with the potash story? I posted that back in August. Pretty neat story.
Click here for a "source document" titled Potash in North Dakota by C. G. Carlson and S. B. Anderson, North Dakota Geologic Survey, 1966.
* At the time of this report, the US led the world in potash production with 90 percent of domestic production coming from Carlsbad, New Mexico
* The authors predicted that as the potash production declined in New Mexico, interest would move to Saskatchewan if potash industry did not develop in North Dakota (this prediction back in 1966 turned out to be right on target)
* Canada is now the world's number 1 producer of potash, producing 90% of North American production (another source)
* Canadian potash deposits are the highest grade known potash deposits in the world
* In North Dakota, the thinnest seams of potash are most shallow; the thickest seams are deeper
* Shallowest seams of potash are found in northeastern Renville and western Bottineau counties (5,800 to 6,200 feet)
* A thicker potash seam is deeper in Burke County; the seam will be thicker but cost of drilling will be greater
* The Divide County seam of potash is probably similar to that in Burke County
* Burke, Renville, and Bottineau counties border Saskatchewan, and run west-to-east (Burke is westernmost, directly north of Mountrail County (home of the prolific Sanish and Parshall oil fields). Renville and Bottineau counties may be familiar to you -- this is where EOG is drilling into the Spearfish formation for oil.
From the Kenmare link:
* North Dakota may hold up to 33 percent of world's reserve of potash
* North Dakota may hold 50 billion tons of potash
Dakota Salts LLC first exploratory well will be in Burke County, near Lignite, North Dakota. According to the press release, the first well will target a seam 34 feet thick at 8980 feet. The funding will be provided by the Chinese (whatever that means). Other than that link, I can't find additional background to the Chinese connection, and that link will not download this morning.
Dakota Salts, LLC, is interested in drilling in Renville, Bottineau and Burke counties. From their website:
* North Dakota salt beds are estimated to contain 50 billion tons of potash
* The Prairie Evaporate Formation in the Williston Basin yields over 33% of the world's potash supply
* Depth to potash: 3,000 feet at Saskatoon; 4,800 feet near Regina; and 9,000 feet in North Dakota
* Potash drilling is greatly benefited by the oil industry -- how closely related these two industries are is very, very interesting
* Following extraction of potash, Dakota Salts LLC is exploring the possibility of creating caverns for the storage of natural gas and other hydrocarbons or the storage of compressed air for electricity generation
Some opine that potash may be may profitable than oil for mineral rights owners in North Dakota. The price for potash spiked to $1,000/ton in 2008; has since fallen back significantly; world demand being driven by Chinese market for fertilizer.
Dakota Salts LLC is busy buying up potash mineral rights in North Dakota. When this story first broke, DS said it had 6,000 net acres; now it has 7,425 acres.
More trivia: for the past few days, I have had a number of stories involving Schlumberger. Well, here's another dot to connect. Dakota Salts LLC will drill their first exploratory potash well in North Dakota with Saskatchewan-based North Rim Exploration Ltd. (NREL) and Schlumberger Water Services USA. I have accumulated shares in SLB for three decades, and remains one of my favorite holdings. Yes, I do fall in love with some of the companies in which I invest, breaking a cardinal rule in investing. Smile.
From the Sirius Minerals website press release, October 19, 2010:
* Schlumberger will act as the contractor responsible for the execution and completion of the well drilling.
* NREL will serve as the overall project manager: site preparation, interface with SLB, and provide well-site geologist.
* It is expected the drilling rig will arrive on site during the week beginning November 1, 2010; drilling and core logging is expected to take two months to complete.
* The core will be sent to NREL's lab in Saskatoon for analysis.
* Dakota Salts holds in excess of 7,425 net mineral acres in the Williston Basin in North Dakota
From other sources:
A rig is being moved from Mexico to drill the potash well. According to the AP, "spare rigs are scare in North Dakota, where a record 153 rigs were drilling on Wednesday."
For investors:
* Sirius Minerals, a penny stock headquartered in London; share price has recently jumped from 2 pence to 7 pence/share. I don't invest in speculative or penny stocks.
* SLB: the first well is being drilled by Schlumberger; if successful, SLB has inside track to develop Dakota Salts LLC acreage in North Dakota. You think?
It is amazing how inter-related the oil industry and the potash industry are. They both use the same geologic information and North Dakota is unique in having one of the best, if not THE best, geologic information library in the world regarding its mineral resource. In addition, look at how they plan to produce the potash:
"They plan to drill horizontal wells into the potash formation, use waste oil-field water, dissolve the potash, bring it to the surface, take it out of the water, put it in rail cars and ship it to the West Coast," according to Lynn Helms, director, state Department of Mineral Resources.
There is no mention of fracturing. Wouldn't this be a hoot if the EPA stepped in to regulate fracturing, putting the oil industry on hold for two years: all those oil rigs would be used to drill for potash.
Posted by Bruce Oksol at 9:19 AM
Labels: Potash, Staggering
http://www.siriusminerals.com/projects/north-america/north-dakota/
http://www.dakotasalts.com/
http://www.dakotasalts.com/images/stories/Dakota_1.3.pdf
http://www.minotdailynews.com/page/content.detail/id/544058.html
http://politicalnews.me/?id=5639&keys=Senator-Kent-Conrad-MinotBypass
The North Central Regional Economic Growth Intermodal Port Connector project includes completing a bypass around the city of Minot and a railroad grade separation, which will improve movement into and out of the city’s value added ag park as well as the the Great Plains Energy Park, the Port of North Dakota Intermodel rail facility and Burlington Northern’s rail complex.
The Minot oil facility, which is located at the intermodal facility, has the ability to receive and ship 30,000 barrels of oil per day, equivalent to 136 truckloads. With the improvements proposed as a part of the Minot Bypass project, the facility will be positioned to dramatically expand its capacity.
In addition to benefitting the energy industry, the Minot Bypass project would aid both the manufacturing and agricultural sectors. In the last four years, North Dakota has experienced a 46 percent increase in manufacturing. Efficient truck access is key to continue this growth. The Minot Bypass project will improve movement of trucks and freight through Minot to help get producers export crops to national and global markets.
http://www.siriusminerals.com/
http://www.washingtonpost.com/wp-dyn/content/article/2010/10/20/AR2010102004934.html
Exploratory potash drilling set in northwest ND
By JAMES MacPHERSON
The Associated Press
Wednesday, October 20, 2010; 4:38 PM
BISMARCK, N.D. -- Amid a record number of rigs drilling for oil in North Dakota, one is slated to bore for potash, a form of salt used for fertilizer.
Dakota Salts LLC, a subsidiary of London-based Sirius Exploration PLC, said it will drill a test well in early November near Lignite in northwestern North Dakota's Burke County. Dakota Salts said it has leased 7,425 acres in northwestern North Dakota for salt and potash mining.
North Dakota likely holds some 50 billion tons of potash, created by oceans that dried up some 400 million years ago, said Ed Murphy, the state geologist. Sirius spokesman J.T. Starzecki said the growing worldwide population and increased crop production have spurred the need for the agriculture fertilizer.
"The demand globally is very, very high and it's expected to grow," Starzecki said Wednesday.
The state Department of Mineral Resources issued a permit for the test well in August. Murphy said it's the first exploratory drilling permit since 1976 for potash in North Dakota.
Denver-based Dakota Salts said the exploration well will be drilled with Saskatchewan-based North Rim Exploration Ltd. and a subsidiary of Schlumberger Ltd., the world's biggest oilfield services company.
Starzecki said a rig is being moved from Mexico to drill the potash well, which would be nearly two miles deep. Spare rigs are scarce in North Dakota, where a record 153 rigs were drilling on Wednesday.
Potash would be gleaned using solution mining, a process that involves injecting liquid in holes to dissolve and recover it.
Murphy said solution mining for was done in North Dakota from 1960 to 1989 near Williston, in the northwest part of the state. About 1 million tons of halite was recovered during that time, he said.
The mined halite was used for table salt, water softener and livestock salt licks, Murphy said.
Dakota Salts is using grant money from the state to study whether the mines can be used to store compressed air for electricity-generating wind farms once the potash is removed.
Besides storing compressed air, Dakota Salts says the mining caverns also could store carbon dioxide from the state's coal-burning power plants or natural gas from its oil fields.
North Dakota's Industrial Commission gave the company a $225,000 grant in April to study the ideas. Gov. John Hoeven, Attorney General Wayne Stenehjem and Agriculture Commissioner Doug Goehring make up the commission.
Starzecki said finding out North Dakota's potash potential is the priority. The storage voids created by mining "is part of our longer-term vision," Starzecki said. "But right now we're focusing on potash exploration."
Sirius Exploration has mining interests in China, Australia and Macedonia.
http://www.siriusminerals.com/
http://www.siriusminerals.com/dakota-salts-commencement-of-drilling/
Dakota Salts: Commencement of drilling
For immediate release: 1200hrs Tuesday 19 October 2010
Sirius Minerals Plc
(“Sirius” or the “Company”)
Dakota Salts: Commencement of drilling
Further to the announcement of 16 August 2010, the Directors of Sirius Minerals Plc (AIM: SXX, OTC: SRUXY), the potash mining group, are pleased to announce that its wholly owned subsidiary, Dakota Salts LLC (“Dakota Salts”), has signed agreements with North Rim Exploration Ltd (“NREL”) and Schlumberger Water Services USA Inc (“Schlumberger”) to enable the drilling programme to commence on Dakota Salts’ Exploration Permit Area in Burke County, North Dakota.
Under the terms of the two agreements, Schlumberger will act as the contractor responsible for the execution and completion of the well drilling; NREL will serve as the overall project manager responsible for the site preparation, interfacing with Schlumberger, and provision of a well-site geologist. NREL will also be fully responsible for all matters relating to the recovery, collection, receipt and analysis of the drill cores. It is anticipated that the drilling rig will arrive on site during the week commencing 1 November 2010, with the drilling and core logging and analysis taking approximately two months to complete.
Through the programme, a single exploratory hole will be drilled to a total depth of approximately 8990ft (approximately 2740meters). The drill core will then be sent to NREL’s core facility in Saskatoon for detailed core descriptions and geochemical sample selection. The samples will then be sent to and analysed at the Saskatchewan Research Council laboratory in Saskatoon.
The cost of the test drilling programme is being met from the Company’s working capital reserves.
Through Dakota Salts, Sirius presently holds in excess of 7425 net mineral acres of exploration leases in the Williston Basin in North Dakota covering known potash and salt deposits. It also owns properties in Western Australia and Queensland.
Chris Catlow, Chairman of Sirius, commented:
“We are delighted to be partnering with two recognized industry leaders on this next phase of our North Dakota project, the near term goal of the activity being to prove up rapidly the viability of a major solution mining potash resource on our North Dakota properties.”
- ENDS –
For further information, please contact:
Sirius Minerals Plc
Richard Poulden (Deputy Chairman) Tel: +971 504 524 994 begin_of_the_skype_highlighting +971 504 524 994 end_of_the_skype_highlighting
Beaumont Cornish Limited (Nomad)
Roland Cornish Tel: +44 (0) 207 628 3396 begin_of_the_skype_highlighting +44 (0) 207 628 3396 end_of_the_skype_highlighting
XCAP Securities Plc (Joint Broker)
John Grant, Karen Kelly, David Newton Tel: +44 (0) 20 7101 7070 begin_of_the_skype_highlighting +44 (0) 20 7101 7070 end_of_the_skype_highlighting
Daniel Stewart & Company Plc (Joint Broker)
Christopher Theis / Emma Earl Tel: + 44 (0) 20 7776 6550 begin_of_the_skype_highlighting + 44 (0) 20 7776 6550 end_of_the_skype_highlighting
Gth Media Relations Tel: + 44 (0) 20 3103 begin_of_the_skype_highlighting + 44 (0) 20 3103 end_of_the_skype_highlighting 3903/ 3902
Toby Hall/Christian Pickel
http://www.siriusminerals.com/
http://www.siriusminerals.com/dakota-salts-land-acquisition-programme-update/
Dakota Salts: land acquisition programme update
For immediate release: 11 October 2010
Sirius Minerals Plc
(“Sirius” or the “Company”)
The Directors of Sirius Minerals Plc (AIM: SXX, OTC: SRUXY), the potash mining group, are pleased to announce that its wholly owned subsidiary, Dakota Salts LLC (“Dakota Salts”), has acquired a further 1,425 net mineral acres of lease areas adjacent to its existing properties in North Dakota.
1,028 net mineral acres have been acquired from multiple unconnected owners in the area for nominal initial cash payments per mineral acre with royalty payments due on mining production. A further 397 net mineral acres have been purchased by Dakota Salts under a five year lease from North Dakota’s State University and School Board Lands department for a total consideration of $49,260.24. The Company now controls some 7,425 net mineral acres of lease areas overlying the Williston Basin, having an overall land position of approximately 18,500 gross mineral acres within North Dakota.
Chris Catlow, Chairman of Sirius, commented:
“Sirius holds a substantial data bank on the geology of the Williston Basin and the potash/salt deposits within it. The information has been fully analysed by the Company and its partners; this has allowed us to identify target locations. We are now acquiring land accordingly and will continue to work closely with the State and our partners in North Dakota to enable Sirius to expand its operational presence in the region, Dakota Salts having recently been granted the first potash specific drill permit in the State for 30 years.”
- ENDS –
For further information, please contact:
Sirius Minerals Plc
Richard Poulden (Deputy Chairman) Tel: +971 504 524 994 begin_of_the_skype_highlighting +971 504 524 994 end_of_the_skype_highlighting
Beaumont Cornish Limited (Nomad)
Roland Cornish Tel: +44 (0) 207 628 3396 begin_of_the_skype_highlighting +44 (0) 207 628 3396 end_of_the_skype_highlighting
XCAP Securities Plc (Joint Broker)
John Grant, Karen Kelly, David Newton Tel: +44 (0) 20 7101 7070 begin_of_the_skype_highlighting +44 (0) 20 7101 7070 end_of_the_skype_highlighting
Daniel Stewart & Company Plc (Joint Broker)
Christopher Theis / Emma Earl Tel: + 44 (0) 20 7776 6550 begin_of_the_skype_highlighting + 44 (0) 20 7776 6550 end_of_the_skype_highlighting
Gth Media Relations Tel: + 44 (0) 20 3103 begin_of_the_skype_highlighting + 44 (0) 20 3103 end_of_the_skype_highlighting 3903/ 3902
Toby Hall/Christian Pickel
Website: www.siriusminerals.com
Richard, you could always become Moderator of this Board.
Hi TDT
Gee! it has been a long time - 8 months since we last spoke in ihub.
I really think it was an office oversight and I still believe that the BoD are taking the right steps to provide us value.
You going to the AGM this year?
I enjoyed the joke on the Best Aussie pick up line ever.
That's very conspiratorial of you Thunderbolt! Next you'll be telling us that directors have been selling down on the QT.
TDT :-o
New Website for Sirius Exploration is now up and running. Looks like they have acquired more land in Western Australia.
http://www.siriusexploration.com/
SXX AGM Sep 28, 2010
Code Red - See you there?
http://www.marketwire.com/press-release-canada/Sirius-Exploration-Plc-Sirius-or-the-Company-Notice-of-Annual-General-Meeting-LSE-SXX-1313249.htm
Sirius Exploration PLC
LSE: SXX
Sep 02, 2010 04:59 ET
Sirius Exploration Plc ("Sirius" or the "Company") Notice of Annual General Meeting
For immediate release: 2 September 2010
Sirius Exploration Plc
("Sirius" or the "Company")
Notice of Annual General Meeting
Sirius Exploration Plc, (AIM: SXX, OTC: SRUXY), the potash mining group, today informs shareholders that its Annual General Meeting will be held on the 28 September 2010, 10.30am, at the Oxford and Cambridge Club, 71 Pall Mall, London SW1.
A copy of the Notice will today be posted to shareholders and will be available on the Company's website,
www.siriusexploration.com.
--End--
For further information:
Sirius Exploration Plc
Richard Poulden
Tel: +971 504 524 994 begin_of_the_skype_highlighting +971 504 524 994 end_of_the_skype_highlighting
Beaumont Cornish Limited (Nomad)
Roland Cornish
Tel: +44 (0) 207 628 3396
Daniel Stewart & Company plc (Broker)
Christopher Theis / Emma Earl
Tel: + 44 (0) 20 7776 6550
Gth Media Relations
Toby Hall/Christian Pickel
Tel: + 44 (0) 20 3103 3903
For more information, please contact
Sirius Exploration Plc
SXX - 30% gain on AIM and it is only lunch in Britan.
I am sure this will be reflected here on SRUXY today. Get ready for when the bell is rung in just over 1 hr.
it would appear the new website was not for the public eye at this point in time.
Either some junior IP office worker left it open by mistake or it was intentionally allowed open for a few hours to support the Chinese MOU in Queensland Australia
WOW! I see a 11.65% gain now.... the stock is priced at almost 34$ now thats what I call improvement :)
yes even I've heard that the new chairman is innovative with his approach and have you heard about the queensland update?
Yes Marshall, thats good at the moment, when do you think Sirius is gonna be back on track?
ah cool. new website
yes but I will be glad if Sirius makes us smile, which is gonna happen pretty soon :)
New website for Sirius.
http://sirius.pm.fabriqate.com/
FabriQate is a specialist uk/Chinese/Indian web design outfit.
FabriQate currently has on the ground presence in 3 countries and will soon be landing in the US..
FabriQate, China
E23 Nantian Inernational Business Center,
1 Hua Cheng Da Dao, Zhu Jiang Xin Cheng
Guangzhou, China
FabriQate, UK
236 Old Brompton Road
London, SW5 0DE, UK
FabriQate, India
FabriQate is a UK-based company with international operations serving clients through our offices in London, Guangzhou and Mumbai.
----------------
SXX Management
Mr. J.T. Starzecki
Senior Director – U.S. Operations
J.T. Starzecki’s proven expertise in leading business operations, sales, marketing, and finance, comes from over a decade of leadership paving the way for now successful multimillion-dollar companies With such positions as V.P. of Business Development and Senior Operations Director, J.T.’s experience in enterprise-wide finance, business development, and strategic planning is a result of a strong desire to be number one.
Additionally, J.T. has a strong background in growing start-up and venture backed organizations through revenue & finance development, product development, marketing, partner channel construction, and creating highly effective team structures.
J.T. holds a Bachelor of Arts from Saint John’s University.
-------------
Mr. Wes Sonnenreich
Senior Director – Australian Operations
Wes Sonnenreich has over 15 years of leadership experience in a diverse range of industries including resources and mining, energy, pharmaceuticals and information technology. In the past five years he has led significant projects for Rio Tinto, Woodside, Horizon Power and Wesfarmers. He has also served as Managing Director of Deloitte Australia’s innovation and commercialisation program, reporting directly to the CEO and executive team. Wes is a graduate of M.I.T. and Harvard Business School and is also a widely published author and speaker.
http://au.linkedin.com/in/sonnenreich
Wes Sonnenreich
CTO at Sirius Exploration
Sydney Area, Australia
Current
* CTO at Sirius Exploration
* Director of Innovation at Deloitte Australia
Past
* Consulting Director at Deloitte Australia
* Founder, Partner at SageSecure LLC
* Founder, CTO at Pharmatrak
Education
* Harvard Business School
* Massachusetts Institute of Technology
Connections: 149 connections
Industry: Management Consulting
Websites
* My Blog
* My Website
* My Company
Wes Sonnenreich’s Summary
Wes has over 15 years of experience as a co-founder and executive of three Information Technology companies, is a graduate of M.I.T. and Harvard Business School's executive education program and is also a widely published author and speaker.
Wes Sonnenreich’s Specialties:
Innovation and commercialization strategy & implementation, funding models, portfolio management, mentoring and concept acceleration, knowledge management, Data/Systems/Network Architecture, information risk assessment, risk metrics, governance & compliance.
Wes Sonnenreich’s Education
* Harvard Business School
eMBA equiv , Program for Global Leadership , 2001 — 2001
* Massachusetts Institute of Technology
BS , Computer Science, Music, Management , 1992 — 1996
Additional Information
Wes Sonnenreich’s Websites:
* My Blog
* My Website
* My Company
Wes Sonnenreich’s Interests:
Has played piano and trombone for many years and has performed in New York and New Orleans jazz clubs with members of Basie's and Ellington's bands, as well as in various rock venues such as the House of Blues in Boston. Also performs Capoeira, a Brazilian martial art that disguises combat as an acrobatic dance set to tribal music.
Wes Sonnenreich’s Groups:
Through his work, music and Capoeira he has been involved in numerous community activities including charity performances and mentorships.
http://www.wiley.com/legacy/compbooks/catalog/35366-3.htm
WES SONNENREICH is CTO of //pharmatrak, an Internet marketing data service for the pharmaceutical industry. Wes is also President of the Sonnenreich Corporation, Inc., an Internet solutions consulting company. Clients include Infoseek and the Boston Medical Center. He is the author of several books, including Web Developer.com Guide to Search Engines (Wiley) with Tim Macinta.
wow thunderbolt! The pics are really nice and will drive a lot of traffic towards sirius
thanks for the info Thunderbolt
Possible partner in North Dakota
http://www.dakotagas.com/CO2_Capture_and_Storage/index.html
Wind Energy gets hugh subsidies - Wonder if Dakota Salts are able to take advantage of this.
http://www.energytribune.com/articles.cfm/5103/Wind-Energy-Gets-Huge-Subsidies-So-Where-Are-The-CO2-Reductions
Wind Energy Gets Huge Subsidies. So Where Are The CO2 Reductions?
By Robert Bryce Posted on Aug. 27, 2010
Ed. note: This story is an extended version of an article that appeared in the Wall Street Journal on August 24.
Over the last few years, the wind industry has achieved remarkable growth largely due to the industry’s claim that using more wind energy will result in major reductions in carbon dioxide emissions. There’s just one problem with that claim: it’s not true. Recent studies show that wind-generated electricity may not result in any reduction in carbon emissions, or those reductions will be so small as to be almost meaningless.
This issue is especially important now that states, even in the absence of federal legislation, are mandating that utilities produce arbitrary amounts of their electricity from renewable sources. By 2020, for example, California will require utilities to obtain 33% of their electricity from renewables. About 30 states including Connecticut, Minnesota, and Hawaii, are requiring major increases in the production of renewable electricity over the coming years. Wind, not solar or geothermal sources, must provide most of this electricity, because it is the only renewable source that can rapidly scale up to meet the requirements of the mandate. But those mandates will mean billions more in taxpayer subsidies for the wind industry and result in higher electricity costs for consumers.
There are two reasons wind can’t make major cuts in carbon emissions. The wind blows only intermittently and variably; and wind-generated electricity largely displaces power produced by natural gas-fired generators rather than that coming from plants that burn more carbon-intensive coal.
Because the wind is not dependable, electric utilities must either keep their conventional power plants running all the time (much like “spinning reserve” in industry parlance) to make sure the lights don’t go dark, or they must continually ramp up and down the output from conventional coal- or gas-fired generators (“cycling”).
Coal-fired and gas-fired generators are designed to run continuously. If they don’t, fuel consumption, and emissions of key air pollutants, generally increases. A car analogy helps explain the reason: An automobile that operates at a constant speed -- say, 55 miles per hour -- will have better fuel efficiency, and emit less pollution per mile traveled, than one that is stuck in stop-and-go traffic. But the wind, by its very nature, is stop-and-go. The result: minimal or no reductions in carbon emissions by shifting conventional generation to wind.
In 2008, a British energy consultant, James Oswald, along with two co-authors, published a study in the journal Energy Policy, which said that any reductions in Britain’s carbon dioxide emissions due to added wind generation capacity “will be less than expected.” The study went on to say that neither the extra costs of cycling the power plants “nor the increased carbon production are being taken into account in the government figures for wind power.”
An April study by Bentek Energy, a Colorado-based energy analytics firm, looked at power plant records in Colorado and Texas. (It was commissioned by the Independent Petroleum Association of the Mountain States.) Bentek concluded that despite huge investments, wind-generated electricity “has had minimal, if any, impact on carbon dioxide” emissions. Thanks to the cycling of Colorado’s coal-fired plants in 2009, for example, at least 94,000 more pounds of carbon dioxide were generated because of the repeated cycling. In Texas, Bentek estimated that the cycling of power plants due to increased use of wind energy resulted in a slight savings of carbon dioxide (about 600 tons) in 2008 and a slight increase (of about 1,000 tons) in 2009.
This month, the US Association for Energy Economics published a paper by Ross Baldick, a professor of electrical and computer engineering at the University of Texas at Austin, which concluded that new wind generation capacity “may not be decreasing greenhouse emissions. However, even assuming that wind displaces fossil emissions, it is not ‘worthwhile’ for reducing greenhouse emissions” even if regulators put a price on carbon dioxide of up to $35 per ton.
The problems posed by the intermittency and variability of wind energy could quickly be cured if only we had an ultra-cheap method of storing large quantities of energy. If only. The problem of large-scale energy storage has bedeviled inventors for centuries. Alessandro Volta and Thomas Edison both produced working batteries. Edison spent years working on battery technology, sinking about $30 million of his own money (in current dollars) into his quest for a durable, high-capacity battery. He had some success. But modern batteries have the same suite of problems that Edison faced: they are too big, too expensive, too finicky, and lack durability.
Other solutions for energy storage like compressed air energy storage and pumped water storage are viable, but like batteries, those technologies are expensive. And even if the cost of energy storage falls dramatically -- thereby making wind energy truly viable -- who will pay for it? Further, even if we have a dramatic breakthrough in energy storage, the deployment of that new technology will likely take decades.
Despite the lack of storage, the US and other countries continue to deploy huge amounts of new wind generation capacity and that expense is being undertaken with the assumption that wind energy will lower carbon dioxide emissions. But federal authorities have done some estimates on how more wind energy will affect emissions. And those estimates are revealing.
Last year, the Energy Information Administration estimated the potential savings from a proposed nationwide 25% renewable electricity standard, a goal that was included in the Waxman-Market energy bill which narrowly passed the US House last year. In its best-case scenario, the annual carbon dioxide savings from that mandate would be about 306 million tons by 2030. Given that the EIA expects annual US carbon dioxide emissions to be about 6.2 billion tons in 2030, that expected reduction will only equal about 4.9% of US emissions. That’s not much when you consider that the Obama administration wants to cut US carbon dioxide emissions by 80% by 2050.
Earlier this year, another arm of the Department of Energy, the National Renewable Energy Laboratory, released a report whose conclusions were remarkably similar to those of the EIA. This report focused on integrating wind energy into the electric grid in the eastern US, which has about two-thirds of all US electric load. If wind energy were to meet 20% of electric needs in the eastern US by 2024, according to the report, the likely reduction in carbon emissions would be less than 200 million tons per year. (All the scenarios in the NREL analysis cost a minimum of $140 billion to implement and the issue of cycling conventional power plants is only mentioned in passing.)
Coal emits about twice as much carbon dioxide during combustion as natural gas. But wind generation mostly displaces natural gas because natural gas-fired generators are often the most costly form of conventional electricity production. That said, if regulators are truly concerned about carbon emissions (and cutting air pollution) they should be encouraging gas-fired generation at the expense of coal. And they should be doing so because drillers are unlocking galaxies of natural gas from shale beds, so much so that US natural gas resources are now likely large enough to meet all of America’s natural gas needs for a century.
Meanwhile, the wind industry is pocketing subsidies that dwarf those garnered by the oil and gas sector. The federal government provides a production tax credit of $0.022 for each kilowatt-hour of electricity produced by wind. That amounts to $6.44 per million BTU of energy produced. Meanwhile, a 2008 EIA report said subsidies to the oil and gas sector totaled $1.9 billion per year, or about $0.03 per million BTU of energy produced. Thus, on a raw, per-unit-of-energy-produced basis, subsidies to the wind sector are more than 200 times as great as those given to the oil and gas sector.
Kevin Forbes, the director of the Center for the Study of Energy and Environmental Stewardship at Catholic University, told me that “Wind energy gives people a nice warm fuzzy feeling that we’re taking action on climate change.” But when it comes to carbon dioxide emissions, “the reality is that it’s not doing much of anything.”
Rumour is that Sirius Exploration intends to promot T shirts at their AGM next month.
http://i35.tinypic.com/16k6hec.jpg
http://i34.tinypic.com/1zoi70i.jpg
Derby Salts - Western Australia sub of Sirius Exploration Pcl
http://derbysalt.com.au/images/stories/map2.jpg
Derby Salts - E04/1960, E04/1961, EO4/1962, E04/1963, E04/19664
Interesting that Schlumberger has been contracted by BURU Energy
http://www.asx.com.au/asxpdf/20100827/pdf/31s4tmvlhvv7qb.pdf
http://images.energy365dino.co.uk/standard/114740_7194b418004a46558c7f.jpg
Only about 0.3% dilution. I am sure we can cope with the issue considering SXX has the potential to be a multi billion dollar company.
For immediate release: 27 August 2010
Sirius Exploration Plc
("Sirius" or the "Company")
Issue of Equity and Options
The Directors of Sirius Exploration Plc (AIM: SXX, OTC: SRUXY), the potash mining group, are pleased to announce that the Company has issued 2,000,000 new Ordinary Shares of 0.25p to satisfy the obligations of the Services Framework Agreement dated 5 May 2010 with CIC Mining Resources Limited.
Application will be made for 2,000,000 new Ordinary Shares, which will when issued rank pari passu with the existing Ordinary Shares in issue, to be admitted to trading on AIM; trading is expected to commence on 3 September 2010.
Following the issue of the new Ordinary Shares as set out above, the total number of shares in issue will be 665,300,160.
In addition, the Company has issued 8,500,000 options, exercisable at 4.5p for 5 years from the date of grant to Lee Rodne, JT Starzecki, W Sonnenreich and Pat Griffiths in relation to work conducted for the Company.
- ENDS -
For further information, please contact:
Sirius Exploration Plc
Richard Poulden Tel: +971 504 524 994 begin_of_the_skype_highlighting +971 504 524 994 end_of_the_skype_highlighting
I have heard that the new chairman is gonna revolutionize the company with his new innovative approach
wow thanks for informing about the update, now I find another reason to support Sirius
given that Sirius has taken over the queensland potash pty ltd.. we are gonna have a good future in our hands
Get in early today. It will jump up.
http://www.otcmarkets.com/stock/SRUXY/news
Queensland update: Sino-Agri MOU
Aug 26, 2010
Pink OTC Markets News Service
London, United Kingdom —
For immediate release:
Sirius Exploration Plc
(“Sirius” or the “Company”)
Queensland update:Sino-Agri MOU
The Directors of Sirius Exploration Plc (AIM: SXX, OTC: SRUXY), the potash mininggroup, are pleased to announce that the Company has entered into a Memorandumof Understanding (“MOU”) with Sino-Agri Mining Industry Co. Ltd (“Sino-Agri”),a division of China’s second largest fertilizer distributor, to developSirius’s property overlying the Adavale Basin in Queensland, Australia.
Under the terms of the MOU, the Parties will explore whether to enter into furtheragreements to establish: firstly, the feasibility of commercial potashproduction on Sirius’s Adavale properties; and secondly, commercially reasonable and profitable terms for the scope of services to be provided bySino-Agri on an exclusive basis for the Adavale project (“Project”).
Inparticular, Sirius and Sino-Agri will endeavour to negotiate mutually acceptable agreements covering firstly an off-take agreement and, secondly, a joint development and funding agreement. Under any such agreements Sino-Agri will be the sole provider of services to bring the Project to commercial production inexchange for 50% of the equity in the Project.
Asannounced on 20 August 2010, based on an interpretation of existing seismic and petroleum drilling data by Boyd PetroSearch (“Boyd”), Sirius has interpreted a site within its Queensland properties considered very prospective for potash.
Aninitial exclusivity period between the Parties exists for 180 days after which date the Parties can select to extend or terminate the MOU. CIC Group China provided advisory services to Sirius on the transaction.
ChrisCatlow, Chairman of Sirius Exploration, commented:
“Sirius is pleased to have taken this important first step in developing a long term relationship with Sino-Agri, a group that is establishing itself asone of the world’s largest potash distributors. Signing this MOU demonstrates that major fertilizer consumers are concerned about the current concentrationof world’s potash supply and wish to fast track the development of new large potash resources. It also confirms the market’s recognition of the massive potential our Adavale tenements offer, and potentially provides Sirius with off-take, finance and surety of commercial production whilst retaining 50% equity in the project. Sirius will now continue moving forward with a range of initiatives across itsportfolio to fast-track the company into a significant global potash supplier. Tothat end, we look forward to further developing our relationship with Sino-Agri.”
- ENDS –
For further information, pleasecontact:
Sirius Exploration Plc
"Do people think the tax announcement will have an impact?"
Our Chairman certainly thinks so.
"We have been working closely with the North Dakota Government to finalise an appropriate operating and taxation regime for
potash exploration and production within the State. We have developed an excellent working relationship with the relevant officials and stakeholders and have been pleased with the enthusiasm and cooperation we have received to date."
"We are hopeful that we will have appropriate regulations in place within the next legislative session. This will allow us to plan with more certainty and facilitate acceleration in the rate of development activities."
North Dakota News: Legislators debate tax increment financing
By REBECCA BEITSCH Bismarck Tribune | Posted: Wednesday, August 25, 2010 12:30 am
Worried that developers might be cashing in on multiple tax credits, the Legislature’s Interim Taxation Committee heard testimony on a bill that would ban cities from overlapping districts that receive designated tax money for economic development.
The bill would stop cities from overlapping tax increment finance districts, which set property taxes aside in a special fund to spur development, and renaissance zones, which offer income and property tax credits for investment in the area. The TIF programs are run by cities while the renaissance districts are overseen by the state.
The districts and zones cover certain geographical areas that Jerry Hjelmstad with the League of Cities said do overlap in certain North Dakota cities, though no one takes advantage of both in each instance.
The issue divided many legislators, though not along party lines.
“This is a classic case of double dipping that developers could use,” said Sen. John Andrist, R-Crosby.
But Rep. Jim Kasper, R-Fargo, said the two urban development programs provide valuable tax incentives for private businesses, not a system ripe for abuse.
Democratic Rep. James Dotzenrod of Wyndmere agreed.
“I’d be prepared to vote for this if after 10 years of experience, we’ve got a problem,” Dotzenrod said. “All I’m asking for is the proponents of this bill to give me some examples.”
Legislators also spoke of drawing up new requirements to bring TIF districts to a close, either after the goals in the development plan were achieved or after a certain number of years.
Bismarck’s TIF districts have remained the example commonly referred to by legislators for the longevity of a district first established in 1979.
Over time, the property taxes set aside for development in that district have grown to over $16 million, about 41 times more than the next highest TIF district fund. Because that money would otherwise be dispersed to local tax-levying districts, almost half, or
$8 million, would go to Bismarck schools. The money is currently resting in one fund until a lawsuit challenging the constitutionality of such programs is settled.
Bismarck’s renaissance zone is entirely within a TIF district. The city did put some restrictions on using money from both programs at the same time, but the TIF program has come to a halt due to the lawsuit.
The committee also moved forward a bill to continue property tax relief after a lengthy discussion over whether to do so through the same mechanism as in a 2009 bill which allows local jurisdictions to reduce property taxes while the state subsidizes school funding or through an income homestead tax credit which was passed in 2007.
The committee decided to once again to pursue tax relief through education. Giving money to schools for property tax cuts would cost about $340 million over two years, an increase from last year’s bill because it includes types of property that were accidentally neglected in the current version.
Sen. Tracy Potter, D-Bismarck, who sponsored the bill that would bring relief through income tax, said he will not push his bill outside of the committee.
Also proposed was a bill that would set up a system for taxing potash in North Dakota. The plan would function largely like the oil and gas tax and would charge about 5 percent by ton. Estimates show the tax would bring in about $16 million to the state per year.
(Reach reporter Rebecca Beitsch at 250-8255 or 223-8482 or rebecca.beitsch@bismarcktribune.com.)
Sirius Exploration report:Moving ahead with potash prospects
By Daniel Stewart & Co
- Sirius is moving ahead with the exploration of its potash prospects in the USA and Australia. In the USA, it has received permission to drill a deep borehole to test the potash at its Dakota Salts project. Work should start in Q4 2010.
- In Australia, the company has just received the results of technical studies, examining the geological potential of the licences in Queensland. These studies will be used to plan a drilling campaign to test the potential for potash there.
Lawmakers ponder ND property tax reduction options
http://www.grandforksherald.com/event/apArticle/id/D9HPVJQ01/
North Dakota lawmakers are pondering the best way to extend property tax breaks to local taxpayers.
One option is to give property owners a state income tax credit. Another is to provide extra money to schools, as long as they use it to cut property tax rates.
The Legislature has tried both methods in the past four years, and the Legislature's interim Taxation Committee is considering the question again.
North Dakota Tax Department analyst Kathryn Strombeck said Tuesday that giving the money to local schools for property tax cuts is easier to administer. But it is the more expensive option.
Giving money to schools for property tax cuts would cost about $340 million over two years. Providing two years' worth of income tax credits would cost about $280 million.
Copyright © 2010 The Associated Press. All rights reserved. The information contained in the AP News report may not be published, broadcast, rewritten or redistributed without the prior written authority of The Associated Press.
AGM should be called within the next 3 - 5 weeks.
Lots of good reports are due/overdue before then.
So get ready to buckle up.
Yep.. I have seen Recent Queensland update. Also thanks to provide this information. So, what do you think now? can we be headed back to the good times of Sirius exploration?
Really! I will wait for that day. Thank you Code red.
Welcome Thunderbolt. Also thanks for your information. Can we expect any good news about Sirus Exploration Plc.?
Sirius Exploration: Queensland update
http://www.marketwire.com/press-release/Queensland-update-LSE-SXX-1307568.htm
Aug 20, 2010 08:00 ET
Queensland update
For immediate release:
Sirius Exploration Plc
("Sirius" or the "Company")
Queensland update
The Directors of Sirius Exploration Plc, (AIM: SXX, OTC: SRUXY), the mining and exploration holding company
focused on potash and salt deposits in North America and Australia, are pleased to provide an update in
relation to its properties in Queensland, Australia. The Company currently holds exploration permits
covering approximately 600 square kilometres of land overlying the prospective Boree Salt Member, a
formation recognised for its significant salt and potash potential. These properties lie some 50 kilometres
south of the town Blackall which has an established road, rail and airplane infrastructure.
During the last quarter Boyd PetroSearch ("Boyd") has been conducting a full interpretation of existing
seismic and petroleum drilling data for the permit land on behalf of the Company. This work was conducted
in two phases and has now been completed. Phase 1 involved the interpretation of publicly available 2D
seismic data; phase II involved digitising the available raster data of seismic lines within the project
area and integrating these with the initial interpretation to produce a new robust interpretation of the
Boree Salt Member.
The initial findings of this work suggest that significantly more salt is present within the exploration
permits than originally believed - Boyd calculating that approximately 100 billion tonnes exist within the
northern exploration permits. This is approximately a 100% increase when compared with the previous
estimations by Sirius using the historic Poseidon seismic interpretation (2008 Terra Search report).
Furthermore, no fatal flaws in the current programme to explore for potash were identified through Boyd's
2D seismic interpretation. Indeed, subsequent work by Sirius which has involved the integration of the Boyd
interpretation with additional data has enabled the Company to interpret a site considered very prospective
for potash formation.
Chris Catlow, Chairman of Sirius Exploration, commented:
"Thanks to Boyd's work, we now hold the most comprehensive analysis of the Boree Salt Member that
exists for our Adavale Project. We are now working with our exploration partners to develop the
initial test drill programme and look forward to updating shareholders on this activity as it
progresses. Adavale is located close to an area where good infrastructure is already in place.
It is also encouraging to see the progress being made by East Energy Resources with its nearby
Blackall Coal project."
Competent Person's Statement
The technical information contained in this announcement has been reviewed and approved by Derek Stonley, a
director of the Company. Mr Stonley graduated from Cambridge with a BA in Natural Sciences and has over
forty years experience in the mining sector. From 1980-1987, Mr Stonley held senior positions at BP
Minerals International Limited. As Consulting Geologist at BP Minerals, he was responsible for the
development of methodologies for valuing exploration properties worldwide. Following the sale of BP
Minerals to RTZ, Mr Stonley was Senior Geologist and ultimately a Consulting Geologist at Rio Tinto Mining
and Exploration Limited.
- ENDS -
hmmmmmmmmmm,,,,,,,,,,,,just wait and see.
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Sirius Exploration Plc is a diversified mining and exploration holding company with salt and potash interests in North America, United Kingdom and Australia and initiatives in Compressed Air Energy Storage and Carbon Sequestration.
Current Projects are:
North America - North Dakota (ND) (Drilling has commenced) http://www.dakotasalts.com/
Dakota Salts LLC is a wholly owned subsidiary of Sirius Minerals Plc and is incorporated in Colorado, USA. Based in Denver, Dakota Salts holds mineral leases in excess of 13,000 acres in North Dakota, USA, allowing for the exploration and extraction of salt and potash and the creation of caverns for the storage of natural gas and other hydrocarbons or the storage of compressed air for electricity generation
EUROPE - UNITED KINGDOM - NORTH YOURSHIRE (NY) http://www.siriusminerals.com/projects/united-kingdom/north-yorkshire/
AUSTRALIA - QUEENSLAND (QLD) - ADAVALE BASIN http://www.siriusminerals.com/projects/australia/queensland/
AUSTRALIA - WESTERN AUSTRALIA (WA) - CANNING BASIN http://www.siriusminerals.com/projects/australia/western-australia/
Sirius owns exploration application permits covering some 1250 km2 of claims in the Kimberley region of Western Australia that overlie the Canning Basin. In total, the exploration application permits relate to five tenements that are situated over the Canning Basin – E04/1960, E04/1961, EO4/1962, E04/1963, E04/19664. These lie some 200 km south-east of Broome and are between 100 km and 150 km south of Derby.
Based on the wealth of historic data that exists as a result of previous oil and potash exploration in the area, these five properties are known to overlie the Mallowa Salt evaporate unit within the Canning Basin.
The Mallowa Salt is recognised as the largest halite accumulation in Australia, according to a report compiled by Rio Tinto in June 2009. Within the Sirius tenements, the Mallowa Salt is around 450 metres thick with the top at a depth of approximately 550 metres below the surface.
These tenements are also close to known coal and gas projects.
In addition, the Company has acquired two further exploration application licenses overlying the Canning Basin. The additional tenements are E04/2003 and E04/2005 and are located in the northwest area of the Willara sub basin of the Canning Basin and cover approximately 1000 square kilometres.
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Deputy Chairman Richard Poulden video: http://www.objectivecapitalconferences.com/ocic/rpoulden.html
Latest Announcement, News Releases and Total Voting Rights here: http://www.siriusminerals.com/news/
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