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Show Production Trends The salt industry is characterized by high tonnage volumes at relatively low unit values and a product which is harvested far from markets. These products face intense competition within the industry both nationally and internationally ( GSLTT and DSLF, 1995). Potassium sulfate is produced at a relatively high volume with higher value per ton, while magnesium metal is produced at a relatively low volume with a high value per ton ( Trimmer, 1998). The estimated average price per metric ton of K20 in 1997 is $ 140 ( Searls, 1998). The estimated average price per metric ton of magnesium metal in 1997 is $ 2,700 ( Kramer, 1998a). Harvesting is also vulnerable to weather conditions and lake level changes. Cool and wet weather slows evaporation and concentration processes. Both low and high lake levels create problems for the mineral extraction industries. When lake levels are low, intake canals to pumps must be dredged and the pumps may need to be repositioned into deeper water ( GSLTT and DSLF, 1995). High lake levels, as experienced in the mid- 1980s, are much more critical to the salt industries than low levels, due to the dilution of feed brines. The economic impact of increased erosion of dikes, dike failure and rebuilding or reinforcing of dikes at high lake levels can also cost millions of dollars ( GSLTT and DSLF, 1995). As the lake level rises and falls, the strength of the brine falls and rises. This inverse relationship is a result of a relatively fixed amount of dissolved solids within the lake coupled with a fluctuating amount of water. When inflow exceeds evaporation, the lake level rises and the extra water dilutes the lake brine. Dilute brine conditions require larger pond areas for a given tonnage of salt production. With a low lake level, brine strength is higher and therefore pumping and pond area requirements are lower for a given tonnage of salt, therefore producing a greater yield. This inverse relationship is particularly applicable to the south arm of the lake, although under some circumstances, similar impacts can result in the north arm of the lake as well ( GSLTT and DSLF, 1995). Salt and brine- derived products are the largest contributors to the value of industrial minerals in Utah. The production of salt and brine- derived products is expected to continue to expand over the next several years ( U. S. Bureau of Mines, 1996). For instance, IMC Kalium Ogden Corp., the largest potassium sulfate producer in North America, plans to double current production ( Warnick, 1998). Value of Production Because there are only six companies on the lake which harvest minerals, and only five mineral commodities are harvested, data on extraction must be presented in aggregate form. Therefore instead of reporting a unit value of the product, this section emphasizes the overall value of production of the minerals harvested. Although the dollar amounts of value of^ production of minerals extracted is held in confidence by DFFSL, general trends can be noted. Overall, the value of production of potassium and magnesium salts has increased more than 12- fold since production began in 1973. The value of 123 |
