Total Costs

PotashCorp incurred more than $127 million in 2006 to address environmental issues, including over $3 million associated with accretion of asset retirement obligations. Over the last five years, operating expenses for meeting environmental commitments and complying with environmental laws and regulations have risen significantly. They totaled $113 million in 2006, while capital costs to meet pollution prevention and control objectives were $14 million.

Environmental Costs by Division

In 2006, the phosphate division accounted for 59 percent of environmental expenses, potash 28 percent and nitrogen 13 percent. Operating expenses accounted for most of the environmental spending in all divisions, with capital costs related primarily to pollution abatement and prevention.

Environmental Costs by Category

The major categories of environmental expenses in 2006 were:

• Environmental monitoring costs, which include equipment, supplies, labor and purchased services required to monitor pollutants emitted: $13 million. Most of this was in the phosphate and nitrogen divisions.
• Site reclamation costs, mainly in the phosphate division: $20 million
• Operating expenses for pollution abatement and control, and waste management, mainly in the phosphate division: $35 million.
• Operating costs for pollution prevention, including processes, practices, materials and products that avoid or minimize the creation of pollutants or waste: $27 million. The potash division accounted for more than 60 percent of this spending.