PotashCorp's just-announced expansion additions at Allan, Cory and Rocanville demonstrate our steadfast commitment to our Potash First strategy, designed to meet the anticipated increase in world demand for this nutrient. Below is a summary of projects in progress.

PotashCorp Capacity Projects Announced and Completed
(All figures $CDN)

• Debottlenecking and compaction expansion projects were completed at our Rocanville (2005) and Allan (2007) facilities, for a total investment of $340 million. A total of 1.15 million tonnes of production capacity and 2 million tonnes of compaction capacity were added.
• Lanigan's $410 million debottlenecking and compaction expansion project – completed in July 2008 – primarily entailed 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: 1.5 million tonnes of product plus 750,000 tonnes of additional compaction capacity.
• Patience Lake, a solution mine, will bring back 360,000 tonnes of previously idled potash capacity via newly drilled injection wells and added pumping and piping systems. The project will cost an estimated $110 million, with construction scheduled to be completed in the fourth quarter of 2008.
• At Cory, an $890 million production expansion and debottlenecking project, which will add 1.2 million tonnes of annual production capacity and 750,000 tonnes of compaction capacity, was announced in May 2007. Its scope was expanded in July 2008 by 1 million tonnes of production capacity at a cost of $220 million. The first 1.2 million tonnes will be complete in mid-2010, with the rest expected to come on stream in late 2012. These expansions will raise Cory’s annual capacity to 3 million tonnes and enable it to produce red potash products in addition to the white product it currently offers. Storage, loadout and rail yard capabilities will be expanded to accommodate the product mix shift and increased volumes.
• At New Brunswick, a net 1.2-million-tonne, $1.6 billion expansion was announced in July 2007. A new 2-million-tonne-per-year mine will replace the existing 0.8-million-tonne mine, and the current mill will be expanded by 1.2 million tonnes. We will leverage existing loadout, storage, rail and port infrastructure to reduce costs and construction time. Construction, including 750,000 tonnes of new compaction capacity, will be completed in Q4 2011 and the project will be ramped up to full production over the following two years.
• At Rocanville, a 2-million-tonne, $1.8 billion mine and mill expansion was announced in November 2007. The project’s scope was increased by 700,000 tonnes and $1 billion in July 2008, bringing the total added capacity to 2.7 million tonnes for $2.8 billion. Associated compaction capacity expansions will enable all new tonnes produced to be compacted. The project involves sinking a new service shaft approximately 23 kilometers from the existing shaft, converting the existing shaft into a production shaft (so only one new shaft will be required), extending the underground development to the new service shaft and expanding mill capability to handle the new tonnage. Construction is scheduled to be completed by late 2012 with ramp-up in the following two years.
• At Allan, a $350 million debottlenecking project will add 1 million tonnes of annual production capability, raising annual capacity to 3 million tonnes. Compaction capacity additions are yet to be determined. Both construction and full ramp-up of this project are expected to be complete by the end of 2012.

Related links:
Audio Interview with Bill Doyle
PotashCorp Adding Another 2.7 Million Tonnes With New Projects at Allan, Cory and Rocanville
Debottlenecking, Expansion and Greenfield Initiatives Defined


<< View All Operations News