Gritting salt demands will cost Boulby’s Cleveland Potash mines dear
RAMPING UP production of gritting salt to keep Britain’s roads moving will cost Boulby’s Cleveland Potash mines dear, management revealed.
Since the start of December, output at the mines has increased 22% compared to the same period last year as it responded to the harshest conditions in 30 years.
An extra 14,000 tonnes of salt a week is being produced, taking total output to 30,000 tonnes - enough to grit up to 150,000 miles of road.
Redirecting production away from more valuable potash, used in fertiliser around the world, to salt will have a “significant financial impact” on the company, it said this week. Salt production in 2009 was at record levels at the mine - one of only three in the UK producing gritting salt as a by-product of potash.
However it covered less than 10% of its operating costs. Potash is the most expensive of the major four nutrients used in fertiliser.
Overall fertiliser prices have already been creeping up this year as worldwide demand for food production grows, but a reduction in output from Boulby is likely to increase price pressure.
MD Graham Clarke said: “Currently there is a strong demand for potash and, in order to meet the request for continuing high levels of salt output, we have had to ask our potash customers for their agreement to delay deliveries.
“Several have agreed to do this, despite the fact that in some cases they will have to suspend production and incur financial losses.
“The reduction in our potash production also has a significant financial impact on our operations.”
The Department of Transport issued calls for the country’s three suppliers, including Cleveland Potash, to ramp up production in December and convened the Salt Cell - a forum comprising the Met Office, Government and local councils - to decide on future strategy, after it was heavily criticised for failing to ensure there were sufficient supplies for gritting highways.
It is believed the Government is planning to hold a salt summit within the next few weeks to thrash out a future policy with salt suppliers.
“The Salt Cell has recognised that, for the second winter in a row, we are doing everything possible to keep customers supplied and has enabled us to continue mining salt at a high level by agreeing a price which reflects the costs of production,” said Mr Clarke.
