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NARO General Message Board

Potash Leasing

  • 04/17/2012 1:40 PM
    Quote
    Message # 891789
    Anonymous

    I was presented an offer to lease potash, but I have no knowledge of what a typical royalty for this mineral type would be.  Any information would be appreciated.
  • 04/18/2012 3:21 PM
    Quote
    Reply # 892626 on 891789
    Anonymous

    Where and how much is there would dictate the issue. Will it be surface mined? Underground mine? etc.

    I would want a fairly hefty royalty that is based upon $ per ton. The cost of fertilizer is very high.
  • 04/19/2012 7:42 AM
    Quote
    Reply # 893644 on 891789
    Anonymous
    The property is in Osceola county Michigan.  The offer gives rights to prospect and explor by geophysical and other methods, develop, drill, mine and extract.  The royalty offered is 5% of the net proceeds of product sold,on potash and potassium salt,  4% of the net proceeds sold for sodium salt, and 3% net proceeds sold for other minerals. 
  • 04/30/2012 9:17 AM
    Quote
    Reply # 906738 on 891789
    Anonymous

    I sell potash leases for the State of North Dakota. It is a finicky business and depends on the various other financial burdens placed on the company, i.e. extraction taxes. Each state is different.
 
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