Increasing Strength: Expansion Adds to Potash First Strategy
November 14, 2007
PotashCorp projects are scheduled to increase production in each of the next five years.
The announcement of PotashCorp’s 2-million-tonne capacity expansion at Rocanville is one more step in the continuing execution of our Potash First strategy.
This US $1.8 billion project will raise our available capacity to 15.7 million tonnes by the end of 2012 and increase PotashCorp’s long-term capacity to 17.2 million tonnes by 2015.
In each of the next five years, we expect to bring a potash expansion or debottlenecking project into production. These incremental increases will build on our current capacity of 10.7 million tonnes and allow us to keep pace with the expected growth in global potash demand.
Additional opportunities to build capacity in Saskatchewan are still being explored, which could bring us to our projected capacity of 17.2 million tonnes by 2015.
PotashCorp Expansion Projects in Progress
PotashCorp currently has four other capacity-related projects underway, with US dollar cost estimates provided below unchanged from those disclosed in earlier news releases announcing these projects:
Lanigan's US $346 million 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 mine hoists, skips (potash elevators) and other underground equipment will help support higher annual production, adding 1.5 million tonnes of product, along with 750,000 tonnes of additional compaction capacity. Construction is scheduled to be completed in the second quarter of 2008.
The Patience Lake facility, a solution mine, will bring back 360,000 tonnes of previously idled potash capacity via 20 injection wells and the pumping and piping systems required to serve them. The project will cost an estimated US $92 million, with construction scheduled to be completed in the first quarter of 2009.
The US $775 million compaction and production expansion and debottlenecking project at the Cory facility, announced in May, will add another 1.2 million tonnes of annual production capacity, with 750,000 tonnes of additional compaction capacity, by mid-2010. The expansions 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 product mix shift and increased volume.
At New Brunswick, US $1.6-billion is being invested in a new 2-million-tonne potash mine and expanded compaction capabilities. This strategic decision will allow us to capitalize on the New Brunswick’s port location and proximity to the growing Latin American market. Production from this expansion is expected to be available by 2011.
Previous debottlenecking and compaction expansion projects have been completed at PotashCorp's Allan (2007) and Rocanville (2005) facilities, with investments in these projects totaling more than US $275 million.
