Operations Highlights

Lanigan's $0.4 billion debottlenecking and compaction expansion project primarily entails refurbishing a mill that has been idle since the mid-1980s. New mill structures and equipment, along with upgraded ore hoisting and other underground equipment, will help raise operational capacity by 1.5 million tonnes, including 750,000 tonnes of additional compaction capability. Construction is scheduled to be completed in the second quarter of 2008.

The Patience Lake facility, a solution mine, will add 360,000 tonnes via 20 new injection wells and the pumping and piping systems required to serve them. The project will cost $0.1 billion, with production to come on stream by 2009.

The $0.9 billion project at Cory will add 1.2 million tonnes of operational capacity in 2010, including 750,000 tonnes of compaction capability. The expansion will enable Cory to produce red potash products in addition to the white product lines it currently offers. Storage, load-out and rail yard capabilities will be expanded to accommodate the new product mix and higher volumes.

At New Brunswick, $1.7 billion is being invested in a new 2-million-tonne mine and a 1.2-million-tonne enhancement to the existing mill. This expansion is strategically and logistically important, as it allows PotashCorp to capitalize on New Brunswick's proximity to port and the growing Latin American market. This expansion is expected to be completed in 2011.

A 2-million-tonne, $1.8 billion mine and mill expansion at Rocanville will enhance this low-cost, technologically advanced facility.

The expansion will leverage existing facilities and infrastructure to reduce construction costs by an estimated 25 percent and completion time by up to two years over equivalent greenfield capacity. An additional shaft will be sunk, providing two shafts with ore hoisting capabilities. Mining machines, underground services and power infrastructure will be added.

A new mill will be built adjacent to the existing mill. Storage, load-out and on-site rail capability will be modified to handle increased tonnes with minimal investment. Construction is scheduled to be complete at the end of 2012.

Other debottlenecking and expansion projects - with the potential to add up to 1.5 million tonnes of capacity at our existing Saskatchewan facilities - are currently under evaluation.