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| Q: |
What year and where was PotashCorp formed? |
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Potash Corporation of Saskatchewan was formed by the Saskatchewan government in 1975 and, over the next three years, acquired about 40 percent of Canada's potash output. In 1989, it became a publicly traded corporation independent of the Saskatchewan government. Today, the government no longer has any ownership in the company. PotashCorp is listed on the Toronto Stock Exchange and the New York Stock Exchange. All outstanding shares are available to trade each day under the stock symbol POT. |
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| Q: |
How many people does PotashCorp employ worldwide? |
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On December 31, 2007 PotashCorp employed 5,003 people. |
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| Q: |
What is PotashCorp’s overall business strategy? |
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We strive to generate long-term growth while minimizing fluctuations in our earnings through a Potash First strategy. To maximize long-term shareholder value, we concentrate on areas of our business that generate the highest margins — primarily potash, but also Trinidad nitrogen and our diverse phosphate products. Sustained margins in these businesses are supported by our lower-cost production capabilities. Our long-term natural gas contracts in Trinidad and proximity to the US market give us significant cost advantages in nitrogen, just as our high-quality rock enables us to make the entire range of phosphate products. |
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| Q: |
Is it possible for a shareholder to tour any of PotashCorp’s facilities? |
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The Company’s operating sites are industrial areas and, in the interest of safety, are not open for on-site public tours. |
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| Q: |
Who are PotashCorp’s customers? |
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PotashCorp produces and markets potash, nitrogen and phosphate products to fertilizer, industrial and animal feed customers around the world. In North America, our fertilizer customers include the large co-ops like Agriliance and Southern States, national accounts and independent retailers. In the offshore market, our customers range from large importing agencies such as Sinofert in China to multinational agribusiness companies to privately and publicly-held fertilizer manufacturers. Industrial customers include large diverse industrial chemical manufactures such as Georgia Pacific Resins Corp. and BASF. Feed customers include large integrated meat processors like Smithfield and Tyson Foods. |
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| Q: |
What percentage of the company’s sales tonnes go to offshore markets? |
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In 2007, 63% of PotashCorp's potash sales went to offshore markets. In nitrogen and phosphate, offshore markets represented approximately 6% and 29% respectively. |
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| Q: |
Who are the company’s major competitors? |
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PotashCorp is a large producer in all three products. In potash, other large North American producers are Mosaic, Agrium and Intrepid. In the offshore markets, Russia, Belarus, Germany, Israel and Jordan are large producers. In nitrogen, other large producers in the North American market are Koch, CF Industries, Agrium and Terra. In phosphates, other large North American producers are Mosaic, CF Industries, MissChem and Simplot. In the offshore markets Morocco, Tunisia and Russia are large exporters. |
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| Q: |
What is Canpotex? |
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Canpotex, which was incorporated in 1970 and commenced operations in 1972, acts as an export company and as a unified marketing force for the three Saskatchewan potash producers. In general, Canpotex sales are allocated among the producers based on production capacity. PotashCorp supplies 54% of Canpotex's requirements, with 38% supplied by Mosaic and the remaining 8% by Agrium. |
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| Q: |
What do the various transportation methods cost? |
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Transportation can represent close to half of the total delivered cost of our products. For example, warehousing in the US can cost US$6-10/tonne; single-car rail shipments of potash into the US can be as much as $70/tonne; and for potash and granulated phosphate fertilizer ocean freight can cost anywhere from $30-70/tonne depending on the market. We continually review and revisit our transportation programs to ensure we offer the best value to our customers and maximize the return to our company. |
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| Q: |
How important is transit time? |
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Reliable, on-time delivery is a priority for our customers and our company and has helped make PotashCorp the leader in our industry. Using potash as an example, we have the shortest shipping times of any major supplier from Vancouver to China (17 days versus 38 days from Russia) and from New Brunswick to Brazil (16 days versus 21 days from Russia). This gives us an edge and makes us a preferred supplier to these important markets. |
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| Q: |
How many warehouses are in the PotashCorp distribution network? |
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PotashCorp utilizes approximately 200 distribution facilities. This increases our ability to quickly fill customer orders. |
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| Q: |
How many railcars does PotashCorp own or operate? |
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The Company owns or leases almost 8,600 railcars. |
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| Q: |
How do I get a PotashCorp student/teacher/researcher package? |
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A PotashCorp student/teacher/researcher package can be obtained by e-mailing our Corporate Relations Department or by calling toll free within Canada (1-800-667-0403) or from the US (1-800-667-3930). |
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| Q: |
What is PhosChem? |
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Since 1975, PhosChem has been the principal vehicle for United States exports of phosphate fertilizers. It is an export marketing agency which
markets DAP, MAP and phosphoric acid (MGA) for its members. Currently, the members of PhosChem are PotashCorp and Mosaic.
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| Q: |
What products does PotashCorp produce? |
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PotashCorp produces potash, nitrogen and phosphate products for use as fertilizers, as a component of animal feed products, and for industrial requirements. |
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