2008 Net Sales

43% of total

2008 Gross Margin

62% of total

Where it comes from

PotashCorp mines potash from underground deposits left behind millions of years ago by evaporated seas. The world's largest deposits are in Saskatchewan.

Applications

• As fertilizer: improves root strength and disease resistance, enhances taste, color and texture of food
• As feed: aids animal growth and milk production
• Used in industrial products (food products, soaps, water softeners)

Competitive Strengths

• Can substantially raise capacity in less time than and at a significant discount to comparable greenfield capacity
• Low-cost, flexible production with small percentage of fixed costs
• Per-tonne fixed costs and mining taxes decrease as production increases
• Existing operations have significant reserves and mine lives
• Offshore investments add considerable global reach and profitability
• Depth and tested experience of management team
• Substantial barriers to entry, with high capital costs and long lead times
• Few world producers, little government ownership
• No known substitutes for potash

Strategies

• As offshore demand grows, bring on capacity at much lower cost than greenfield
• Match production to market demand to enhance stability