Published: September 23, 2010
Compass Minerals Announces Sulfate of Potash Capacity Expansion on Its 40th Anniversary at the Great Salt Lake
OVERLAND PARK, Kan. - (BUSINESS WIRE) - Compass Minerals (NYSE: CMP), through its Great Salt Lake Minerals Corp.
(GSLM) subsidiary, today announced plans to further expand its sulfate
of potash (SOP) specialty fertilizer production capacity at the Great
Salt Lake in Utah. Using new, patent-pending solar-pond technology, the
company expects to improve the efficiency of its existing pond system by
60 percent to produce approximately 220,000 additional tons of its
all-natural SOP annually without changing its current solar-pond
footprint. Upon completion, the company's total pond-based SOP capacity
will be approximately 570,000 tons per year.
Work will begin immediately to increase production incrementally through
2015, with some new capacity available starting in 2012. The
announcement comes as the company celebrates the fortieth anniversary of
its operations at the Great Salt Lake.
"Demand for SOP is expected to rise significantly over the next five
years as fruit and vegetable consumption increases around the globe,"
said Angelo Brisimitzakis, president and CEO. "We believe our unique
ability to increase our low-cost, pond-based SOP capacity in a
cost-efficient, environmentally friendly manner makes this an extremely
compelling opportunity."
Compass Minerals expects to invest approximately $160 million to
implement the new pond technology and increase the size of its
processing plant. An initial $10 million investment will be made in the
second half of 2010, with the remaining investments occurring through
2013.
The new pond-barrier technology will allow Compass Minerals to reduce
sub-surface brine loss. Without barriers, concentrated brine naturally
migrates from the solar ponds. By better containing the ponds, the
company will retain more of the lake's brine, in turn increasing the
amount of SOP produced. The technology was proven effective through
laboratory and field tests at the Great Salt Lake, and the company has
applied for a patent on the application of the technology.
This is the second phase of Compass Minerals' multi-phased plan to
increase its low-cost, pond-based SOP production capacity at the Great
Salt Lake. In 2008, the company began Phase I by improving the
efficiency of its processing plant to increase its pond-based SOP
production from 250,000 tons per year to approximately 350,000 tons per
year by the end of 2010 when the project will be completed. Compass
Minerals' third expansion phase could more than double annual SOP
capacity by building new solar ponds on the Great Salt Lake. This phase
requires permits from the Army Corps of Engineers and is not expected to
provide additional SOP production for at least five years.
Growers of fruits, vegetables, nuts and other high-value crops use
sulfate of potash to restore nutrients to the soil, increase crop yield,
improve crop quality, and increase resistance to disease and drought.
Compass Minerals uses all-natural processes to produce organic-approved
fertilizer from the brine of the Great Salt Lake.
For more information, please see the company's Phase II Expansion
presentation available at www.CompassMinerals.com/Presentation.
About Great Salt Lake Minerals
Great Salt Lake Minerals Corporation has been operating on the shores of
the Great Salt Lake near Ogden, Utah since 1970. The company produces
salt, potassium sulfate (also known as sulfate of potash or SOP) and
magnesium chloride, using solar evaporation. Great Salt Lake Minerals is
a wholly owned subsidiary of Compass Minerals.
About Compass Minerals
Based in the Kansas City metropolitan area, Compass Minerals is a
leading producer of minerals, including salt, sulfate of potash
specialty fertilizer and magnesium chloride. The company provides
highway deicing salt to customers in North America and the United
Kingdom and specialty fertilizer to growers worldwide. Compass Minerals
also produces consumer deicing and water conditioning products,
ingredients used in consumer and commercial foods, and other
mineral-based products for consumer, agricultural and industrial
applications. Compass Minerals also provides records management services
to businesses throughout the U.K.
This press release may contain forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. These
statements are based on the Company's current expectations and involve
risks and uncertainties that could cause the Company's actual results to
differ materially. The differences could be caused by a number of
factors including those factors identified in the "Risk Factors"
sections of our Annual and Quarterly Reports on Forms 10-K and 10-Q. The
Company undertakes no obligation to update any forward-looking
statements made in this press release to reflect future events or
developments.

Compass Minerals
Peggy Landon, 913-344-9315
Director of
Investor Relations and Corporate Communications
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