Posts Tagged ‘Real AZ Corridor’

Good Earth Power Buys Pioneer; Takes Over 4FRI Contract

Friday, September 20th, 2013

The U. S. Forest Service has announced that Good Earth Power AZ LLC has taken over the 4FRI contract as part of its acquisition of the assets of Pioneer Forest Products.  

Good Earth Power is now contractually obligated to carry out the terms and conditions of the Phase 1 4FRI stewardship contract, which involves forest restoration treatments across four National Forests in northern Arizona. Pioneer was awarded the contract in May 2012, but failed to find financing for its operations.  

The 4FRI award calls for 300,000 acres to be thinned over 10 years on the Coconino, Kaibab, Apache-Sitgreaves and Tonto National Forests. Oman-based Good Earth has brought on a forest management company to oversee thinning operations.  

Good Earth CEO Jason Rosamond said that the company will invest in about 20 pellet mills in the project area and plans to ship product overseas. A $50 million wood processing mill in Winslow and a facility to produce biofuels are also part of the company’s plans.

This is very good news for the Real AZ Corridor. Good Earth is involved in diversified energy production, future forestry and biomass utilization, resource management and community development — which are also priorities for the Real AZ Development Council.  

Information on Good Earth can be found online at www.futureforestsector.com  and at www.goodearthpower.com

Real AZ Corridor Debuts Future Forestry Website

Monday, June 10th, 2013

biofuel Real AZ CorridorThe Real AZ Corridor debuted its new Future Forestry/Forest Management website today. This is a high growth economic development sector with MUCH future potential in northeastern Arizona, thanks to 4FRI … biomass … wood product innovations … the emergence of the carbon offset credit industry and more.

Northern Arizona is home to the largest contiguous Ponderosa pine forest in North America, with more than 2.4 million acres of pines in the Apache-Sitgreaves, Coconino, Kaibab and Tonto National Forests. Future Forestry and Forest Management has been identified as one of four sectors having strong economic development potential in the Real AZ Corridor.

Future Forestry contracts and industry are expected to create more than 700 permanent jobs in the Real AZ Corridor, including loggers, drivers, mill operators and biomass plant workers. The region’s emerging wood products industry is expected to grow significantly, fueled by the outputs of large-scale, small timber harvesting on more than 300,000 acres over the next 10 years.

The website features the Real AZ Corridor Sector Profile … links to key resources … and a gateway to emerging opportunities in the sector. A landing page strategy and new links on the Real AZ Corridor website are designed to enhance search engine optimization.

It is the first dedicated future forest/forest products/forest management site of its kind … and we expect it to be a gateway to growing opportunity in this sector, and throughout the Real AZ Corridor … Lori Martinek, ED/c Partners

Real AZ Corridor Debuts Potash Sector Website

Thursday, April 18th, 2013

holbrook basin potashThe Real AZ Corridor debuted a website today dedicated to the development of the high-potential Potash Mining, Processing and Distribution sector in northeastern Arizona. The website can be viewed at www.azpotash.com , and also at www.potashsector.com . A new page was also added to the Real AZ Corridor website at www.realazcorridor.com  

The azpotash.com site includes a Potash Sector profile; links to the websites and Preliminary Economic Assessments of the major mining interests; permit information; resources and links to related topics and sources; news on emerging business, job and training opportunities; and information on the Real AZ Corridor and its strategy to capitalize on the economic growth that potash mining will bring to the region.

The website was funded through a Vision Grant from the Arizona Commerce Authority.

Real AZ Corridor Plans for Workforce Needs

Friday, April 12th, 2013

The Real AZ Development Council (RADC) formed a committee to plan for the Real AZ Corridor’s future workfoce needs at its April meeting in Snowflake yesterday. The Workforce Development committee will work with employers in the potash mining, general mining and other labor-intensive industries and local educational institutions and training providers to identify the types of skills that will be needed to sustain economic growth in the region.

The effort was spurred by projections from Passport Potash and American West Potash that they could create as many as 2,500 permanent production-related jobs within the next four to five years. Existing Corridor employers, including Preferred Sands, have a need for trained workers now. RADC is working to ensure that the Corridor can provide a sustainable pipeline of ready, well-trained workers to support the these and other industries. Potash mining is expected to create jobs with an average salary of $70,000. Resource estimates put the projected life of the mines at a minimum of 26 years. Some estimates project several generations of mining in the region.

RADC also formed committees to oversee prospect development in categories that have been identified as related to potash mining and ripe for investment in the Corridor. The committee will create a list of target businesses, and also identify opportunities for new business development or business expansion in the Corridor. … Lori Martinek, ED/c Partners for Real AZ Corridor

 

Potash Projects Make Progress, RADC Targets Growth

Tuesday, April 9th, 2013

Potash Mining in Real AZ Corridor 2013The Real AZ Development Council (RADC) was awarded a Vision Grant from the Arizona Commerce Authority. As part of that grant, RADC produced a Potash Sector Profile (see it online HERE) and a detailed Potash Sector Target Marketing Strategy that identifies how RADC can leverage expected growth in that sector. 

With plan in hand, we are now putting the finishing touches on a Potash Sector Website, which has been built as a sub-domain expansion to the Real AZ Corridor website. The new site will debut at www.azpotash.com on April 22. It will also be linked to a landing page at www.potashsector.com, and appear as a new gateway page on the Corridor’s website at www.realazcorridor.com.

Committees are now being formed to drive implementation of the strategy for this sector. ED/c Partners owner Lori Martinek will attend the April and May RADC meetings in Snowflake to present the Potash Sector strategy to stakeholders and to help RADC get started with developing a prospect list, identifying workforce needs and sourcing a lead tracking and follow up tool.  

A similar process is about to begin for the Future Forest/Forest Management Sector, which will be impacted by the U.S. Forest Service’s 4FRI (Four Forest Restoration Initiative) contract award to Pioneer Forest Products. Pioneer is expected to build a mill and wood processing plant at Winslow, and create nearly 800 short and long-term jobs over the life of the 10-year 4FRI contract.

Potash Sector Profile Shows Big Potential in Arizona

Tuesday, February 19th, 2013

A profile of the Potash sector and its huge potential in the Holbrook Basin and the Real AZ Corridor has been posted on the Corridor’s website: Potash Sector Profile HERE

Potash mining, processing and distribution has the potential to become a major economic driver in northeastern Arizona, creating jobs, capital investment and indirect economic development. Estimates forecast that there could be up to 2.5 billion tons of potash in the region, with a mining life of up to 80 years. Read more online …

Lundberg Named New RADC Coordinator

Monday, February 18th, 2013

Gus Lundberg has agreed to serve as the new RADC Coordinator for the Real AZ Corridor. Gus was formerly with the Town of Taylor and joined the Navajo County Finance Department in January 2013. Gus can be reached at glundberg@realazcorridor.com  or by calling (928) 243-8840. He will handle inquiries and all information requests for the Real AZ Corridor.

Gus takes over coordinator/outreach duties from former RADC Coordinator Eric Duthie, who left the Town of Taylor in early February to pursue a new career opportunity. Eric did an amazing job putting a face on and building momentum for the Real AZ Corridor since its debut in 2010, and the RADC leadership and membership thanks him for all of his efforts on the region’s behalf.

The Importance of Potash Mining to the Real AZ Corridor

Friday, January 25th, 2013

Potash mining can bring various benefits to a region. Economic benefits can include royalty revenues for mining on public lands, state and county ad valorem taxes and sales tax revenues. Short-term construction and permanent mining and processing jobs are created. Economic growth results from spending by mining companies and their workers, new business for local service providers and suppliers, payments to local property owners, and the creation of businesses that are necessary to support mining or that are enabled by it. Workforce training programs often develop through investment by nearby communities and educational facilities. Mining companies often make direct community investments by improving or expanding infrastructure, and by sponsoring new educational programs or medical facilities and services.

The emergence of a significant potash mining sector can also be expected to attract the development of related businesses, including transportation (truck, rail), equipment sales, maintenance and repair; and road salt sales and marketing (an output of potash mining).

There is also the potential to develop solar fields on land above underground potash mines. Marine algae farming requires water which is similar in brine content to that utilized in potash mining. It is feasible that successful algae cultivation could take place on land which is above or immediately adjacent to underground potash mines. Algae & Other Biosciences is one of the four high potential development sectors identified in the Real AZ Corridor.

Primary targets for sector-related development would include trucking and transportation companies, including fuel providers and paving companies; ventures that support high volume industrial rail traffic; and companies which sell, maintain, rent and repair mining equipment and trucks or truck parts. A strong secondary road salt sales and marketing sector could emerge, targeting high snow and mountainous regions surrounding the Holbrook Basin.

Learn more about the potential of potash and other sectors on the Real AZ Corridor website at www.realazcorridor.com

An Update on Potash Projects in the Real AZ Corridor

Friday, December 21st, 2012

This is a good overview of what’s happening, and expected to happen, in potash mining development in the Holbrook Basin and the Real AZ Corridor over the next few years:

Passport Potash and Prospect Global are two exploration-stage mining companies with significant claims to the potash rights in and around the Holbrook Basin of eastern Arizona. As previously mentioned, there is a blueprint that greenfield companies follow to move from exploration to production. Both companies are following this blueprint on the same trajectory.

For the most part, the U.S. has potash deposits that, until recently, have not been economically viable to develop. The U.S. imports 80-90% of its potash- an unashamed “net importer.” Potash is mined in small amounts in Utah, Michigan and New Mexico. Intrepid Potash (IPI) operates two potash mines in Utah and one in New Mexico. Mosaic mines potash in Michigan and also New Mexico. Potash from reasonably-priced domestic sources can have a competitive advantage because transportation costs are lower. Additional consideration is given to domestic potash because of the significant strengthening of the U.S. dollar versus the Canadian dollar during the past couple years.

Arizona may be critical to expanding domestic potash production. In addition to being one of the friendliest and safest areas of the world for mining, Arizona’s deserts and plains have favorable year-round climates. Arizona’s Holbrook Basin has between 682 million metric tons to 2.27 billion metric tons of potash deposits, according to the Arizona Geological Survey. This deposit underlies 600 square miles east of Holbrook, Arizona in the northeastern area of the state. The Petrified Forrest National Park is located squarely in the center of the formation. The site is served by railroad, highway, power and water.

Arizona’s Holbrook geophysical formation is not a new discovery. Minerals were discovered here in the 1960s after initial mineral exploration. Exploratory holes have been drilled over the years, and there is a significant amount of historical information. The top of the potash deposit is situated from 700 to 2,000 feet below the ground surface; most of the deposit is found at about 1,200 to 1,300 feet deep. Maximum thickness of the potash is about 40 feet and averages less than 20 feet. In comparison to the large deposits in Saskatchewan, Canada, Arizona’s potash is about 50% less thick yet 50% shallower, meaning that the mine will be about 50% less expensive to build. Reports of the average grade of Arizona’s potash range from 6% to 20%.

As a number of permanent demand changes appear to be sustaining potash around $400 (well above its historical price range of $100), the potash deposits in the Holbrook Basin in Arizona have become economically feasible to develop. Prospect Global and Passport Potash are competing to take advantage of this opportunity by entering production within the next three to four years. Investors, looking for a way to gain exposure to potash exploration in the United States, may want to consider these two junior potash companies.

At this point, both companies are approximately four years away from any mining operations (lengthy preparation is typical in potash mining). However, both have the requisite resources for building a mine: supportive government, enthusiastic blue-collar labor force, no safety concerns, billions in potash deposits, and easy access to power, water, rail and highway. Exploration-stage potash companies are not the right investment option for every investor, but with the U.S. importing 90% of its consumption, there is an obvious need for new domestic producers.

Read the full profile and report here, which includes a detailed timeline and more project information. It’s long, but defiitely worth a few minutes:

http://seekingalpha.com/article/1072401-american-potash-companies-looking-to-capitalize-on-fertilizer-demand?goback=%2Egde_4146073_member_198081969 

Catalyst Paper Approves Bid to Buy Snowflake Mill Assets, Railway

Tuesday, December 18th, 2012

This is excellent news for the entire Real AZ Corridor, and for the future of potash development throughout the region:

Tuesday, December 18, 2012

Richmond, BC – Catalyst Paper announced that it has accepted, subject to US Court approval, a binding bid from an acquisition vehicle organized by Hackman Capital and its affiliates to purchase the assets of the closed Snowflake facility and the shares of Apache Railway for US$13,460,000 and other non-monetary consideration. The buyer intends to continue to operate the Apache Railway as a going concern, and the transaction is supported by the Town of Snowflake and various local interests.

“We are pleased that this transaction has progressed efficiently and that the community’s interests have been considered through the process and in the successful bid,” said President and Chief Executive Officer Kevin J. Clarke. “While paper manufacturing is part of Snowflake’s past, this transaction puts the asset on a path to a new future that can continue to bring value to the region.”

The winning bid was made at the auction held on December 17, 2012 under the US Court-approved sale and investor solicitation procedures. The sale is expected to complete in the first quarter of 2013 and is subject to various closing conditions.  A hearing in the US Court is scheduled for December 19, 2012 to consider approval of the sale.