The following graph shows sulphur-price trends over time.

People asked me a few times during the past few weeks about what is happening with the feared construction of the HAZCO sulphur-storage, -forming and -shipping facility that HAZCO so eagerly and urgently wanted to build not quite two miles east of Bruderheim, at the junction of Highway 45 and RR 202.

Well, the NRCB hearing last year decided to give HAZCO the go-ahead on that; against the wishes of many opponents.

It seems that HAZCO’s sense of urgency that drove their application evaporated in consequence of the collapse of the sulphur-price-bubble that had emerged in 2007 and popped by the end of 2008.

For most of 2009 plant-gate sulphur prices were below $0.00/LT and even as as low as -$29.52/LT.  That means that sulphur sources would have paid as much as $28.52/LT to selected “purchasers” just to have excess sulphur taken off their hands.

In other words, for as long as sulphur requires a subsidy to be leaving plant gates, to which then still the cost of forming and shipping the sulphur to Vancouver must be added before it can be injected into the saturated world market, it is not likely that producers or HAZCO will make a profit on selling, forming and shipping of sulphur.

It seems that common sense in standard business practices applies.  For now the sulphur business that HAZCO wanted to engage in at a profit is a bust and will not generate the revenues required for the cost of constructing the HAZCO sulphur facility, aside from the cost of forming and shipping of sulphur.

However, I am not the expert.  Perhaps it is possible to obtain better information from HAZCO or from the Lamont county planners who are busy having the infra-structure built from our tax money with which they hope to attract industries that will pay back what they invest.

Mind you, losses are not a great concern for the county planners or for the NRCB.  Whatever losses they cause will be paid for by the taxpayers.  It’s a no-risk business for planners and for the NRCB, although the taxpayers will lose a great deal even if the HAZCO facility will not be built.

The whole deal is not worth it to me to spend more time on.  I am through worrying about bubbles, and it likely that another bubble will not pop up for quite some years.  The last bubble we had pop up in the same place, before this one, popped up about 40 years ago.  Perhaps it will now be another 40 years before the next one pops up and then bursts.