IPP to Supply Equipment for Sage Potash’s Utah Project

Sage Potash has a large portfolio of mineral rights in the prolific Paradox Basin in Southeastern Utah. (Courtesy of Sage Potash)

Sage Potash Corp. has purchased process equipment worth $12.6 million (Canadian $) from Princeton Junction-based International Process Plants. The deal supports Sage’s efforts to accelerate its potash production project in Utah’s Paradox Basin, reducing its reliance on new equipment and mitigating project risks.

In announcing the deal with IPP, a global solutions provider for process plants and equipment, Sage, which is based in Vancouver, British Columbia, said will acquire equipment capable of processing up to 300,000 tonnes of potash annually.

Most of the equipment was originally fabricated in 2012 but remains unused and stored in Europe. The purchase also includes machinery from IPP’s inventory.

Ron Gale, President of IPP, emphasized the value of second-hand equipment in today’s market.

“More companies are realizing the benefits of using quality second-hand equipment, especially when considering the time and cost savings,” Gale said. “Sage Potash’s commitment to quickly and cost-efficiently execute this project aligns perfectly with our 46-year mission of providing high-quality, existing unused and used equipment for fast-tracked projects.”

IPP specializes in helping manufacturers source unused or quality second-hand assets. It also sells new process equipment through a sister company, Gale Process Solutions. With operations in 15 countries, IPP maintains a large and diverse inventory across the globe, including 18 complete plant sites, 110 plants for relocation, and over 15,000 process systems in the company’s three warehouses.

Peter Hogendoorn, CEO of Sage Potash, said the acquisition helps streamline the timeline for the company’s potash project. He also stressed the value of working with IPP to reduce risk and cost, while saving time.

“By buying this existing equipment now, Sage is mitigating project risk and cost,” Hogendoorn said. “Today’s stainless steel and titanium fabrication lead-times for equipment add significant uncertainty to project financing, both in terms of cost and time. By buying this existing equipment now, Sage is mitigating project risk and cost, as well as providing added clarity to the project’s timeline.”

Read the full press release here.