Through its wages, hiring and local purchasing policies, PotashCorp has an economic impact on local labor markets.
Expansions
In 2007, PotashCorp announced almost $4.5 billion in new projects at its Patience Lake, Cory, Rocanville and New Brunswick potash operations. Debottlenecking should be complete at Patience Lake by the end of 2008, while Cory's debottleneck/expansion is expected to be completed by mid-2010. The company expects ramp-up at its new mine and expanded mill at New Brunswick to begin by the end of 2011, and a large mine and mill expansion project at Rocanville is expected to be complete one year later.
PotashCorp expects to develop an additional 1.5 million tonnes of potential capacity in Saskatchewan by 2015, and is updating long-standing plans for a greenfield mine at Bredenbury, SK.
Future Capacity |
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| Location | Investment (CDN $ billion) |
Standard Capacity Added (MMT) | Compaction Capacity Added (MMT) | Expected Construction Completed |
| Rocanville | 0.13 | 0.75 | 1.50 | Complete (2005) |
| Allan | 0.21 | 0.40 | 0.50 | Complete (2007) |
| Lanigan | 0.41 | 1.50 | 0.75 | Q2 2008 |
| Patience Lake | 0.11 | 0.36 | 0 | Q4 2008 |
| Cory | 0.89 | 1.20 | 0.75 | Q2 2010 |
| New Brunswick | 1.66 | 1.20 | 0.75 | Q4 2011 |
| Rocanville | 1.80 | 2.00 | To be determined | Q4 2012 |
| Total | 5.21 | 7.41 | ||
| Source: PotashCorp | ||||
Indirect Economic Impacts
Public Benefits from Operations
PotashCorp's capital contribution to local economies extends beyond the direct impact of its investments in its own operations and local purchasing. Its donations can affect the local economy through its impact on educational and medical facilities, social and sports centers, utilities and other important elements of community life.
Indirect Economic Impacts
The potash capacity expansions will improve the company's ability to meet the needs of customers and increase the positive impact it has on its communities.
Between 2005 and 2012, the company will complete significant projects at each of its potash operations in Canada, investing CDN $5.2 billion – including $3.5 billion in Saskatchewan. This will have a considerable impact on the provincial economy, which reported a total gross domestic product of approximately $46 billion in 2006.
A significant portion of the investment will be spent locally, creating jobs in construction and manufacturing, as well as increasing the need for support services and supplies. The company anticipates this will extend deeper into the communities where it operates, giving more people an opportunity to benefit from the expansions. For example, salaries and supplier income spent locally or paid as taxes multiply through the community and induce more economic activity, job creation and wealth creation.
When these projects are complete in 2012, PotashCorp expects to have increased its operational capacity by more than 50% from 2007 levels. With more tonnes to sell at a time of rising potash prices, the company can further improve its performance for investors while enhancing the foundation of its business for years to come.
PotashCorp is not yet able to present more specific information on its indirect impacts. These impacts are substantial given the significant reinvestment in capacity by 2012.
Beyond the description provided above, PotashCorp is a major contributor to world food production.