|
Note 7—PROPERTY, PLANT, AND EQUIPMENT AND MINERAL PROPERTIES
"Property, plant, and equipment" and "Mineral properties and development costs" were comprised of the following (in thousands):
|
|
|
|
|
|
|
|
|
|
September 30, 2011 |
|
December 31, 2010 |
|
|
Buildings and plant |
|
$ |
65,020 |
|
$ |
55,462 |
|
|
Machinery and equipment |
|
|
226,893 |
|
|
190,662 |
|
|
Vehicles |
|
|
8,699 |
|
|
8,015 |
|
|
Office equipment and improvements |
|
|
13,711 |
|
|
13,333 |
|
|
Ponds and land improvements |
|
|
7,871 |
|
|
6,802 |
|
|
Construction in progress |
|
|
126,651 |
|
|
77,998 |
|
|
Land |
|
|
263 |
|
|
263 |
|
|
Accumulated depreciation |
|
|
(89,790 |
) |
|
(66,615 |
) |
| |
|
|
|
|
|
|
|
|
$ |
359,318 |
|
$ |
285,920 |
|
| |
|
|
|
|
|
|
Mineral properties and development costs |
|
$ |
42,065 |
|
$ |
42,288 |
|
|
Construction in progress |
|
|
694 |
|
|
515 |
|
|
Accumulated depletion |
|
|
(9,435 |
) |
|
(8,431 |
) |
| |
|
|
|
|
|
|
|
|
$ |
33,324 |
|
$ |
34,372 |
|
| |
|
|
|
|
|
Intrepid recorded the following cost for depreciation, depletion, amortization, and accretion ("DD&A"), including DD&A capitalized into inventory, for the following periods (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
Nine months ended |
|
|
|
September 30, 2011 |
|
September 30, 2010 |
|
September 30, 2011 |
|
September 30, 2010 |
|
|
Depreciation |
|
$ |
8,403 |
|
$ |
6,417 |
|
$ |
24,358 |
|
$ |
18,495 |
|
|
Depletion |
|
|
232 |
|
|
212 |
|
|
1,027 |
|
|
897 |
|
|
Amortization |
|
|
— |
|
|
55 |
|
|
92 |
|
|
166 |
|
|
Accretion |
|
|
184 |
|
|
176 |
|
|
566 |
|
|
528 |
|
| |
|
|
|
|
|
|
|
|
|
| |
Total |
|
$ |
8,819 |
|
$ |
6,860 |
|
$ |
26,043 |
|
$ |
20,086 |
|
| |
|
|
|
|
|
|
|
|
|
"Mineral properties and development costs" include accumulated costs of approximately $1.4 million as of September 30, 2011, and December 31, 2010, associated with the presently idled HB Solar Solution mine that is being converted to a solar solution mine. Intrepid is actively seeking the required permits and approvals from the Bureau of Land Management ("BLM") and the state of New Mexico to resume production from this mine using solution mining techniques and the application of solar evaporation, similar to the operations in Moab, Utah. "Construction in progress" related to property, plant, and equipment associated with the HB Solar Solution mine also includes approximately $30.5 million and $26.7 million as of September 30, 2011, and December 31, 2010, respectively. No depletion or depreciation is currently being recognized on this property or its related assets, as the mine has not yet been placed in service and there is no basis over which to amortize the historical costs. |