Environment

Our potash and phosphate businesses mine ore to make product. Most natural gas is consumed to make ammonia, while sulfur is used to generate steam and make sulfuric acid. Limestone consumed to produce monoammonium phosphate and diammonium phosphate is mined at Weeping Water and purchased at other locations. Few recycled materials and wastes are used in the production of potash, phosphate or nitrogen compounds, except recovered sulfur – a byproduct of oil refining or natural gas production – in producing phosphoric acid.

Indirect energy is the energy consumed by providers to make the electricity we purchase. Electricity is the only indirect energy currently monitored. Our electricity purchases vary each year based on the products that we make.

Energy Efficiency Projects in 2008

• Allan – We began engineering upgrades to a boiler to increase efficiency.
• New Brunswick – We tied into two natural gas wells on site property to replace oil with natural gas as a fuel for existing boilers, helping to reduce GHG emissions.
• Aurora – We began to replace two sulfuric acid plants built in the 1970s with a single energy-efficient sulfuric acid plant incorporating a heat recovery unit. An existing electricity generator will be upgraded to use the steam from the new sulfuric acid plant.
• White Springs – We established a program to shut down unnecessary equipment wherever possible, to increase monitoring and preventive maintenance of electrical equipment and to improve electrical distribution patterns in the mine areas.
• Trinidad – We modified a boiler to improve the efficiency of a turbine, and we upgraded one of the ammonia plants to make more efficient use of steam.

Our operations withdraw water from rivers, groundwater aquifers and the Atlantic Ocean. About 75 percent of the water withdrawn is for phosphate mining operations, which use water to transport raw material. The processes are closed loop by design with minimal loss of water.

Two considerations shape PotashCorp's approach to biodiversity:

• Our SHE Policy commits the company to minimize impacts on the environment, which helps preserve biodiversity
• We meet all federal, state/provincial and local regulatory requirements, which often include enhancing natural biodiversity by creating new habitats. The mining permit process at our phosphate operations requires a detailed environmental impact statement that explains how PotashCorp will avoid or mitigate impacts on plant and animal species. Public involvement is also part of the permitting process

PotashCorp is unaware of any (IUCN) Red List species in areas affected by our operations.

In Saskatchewan, nine wildlife species at risk have breeding ranges that overlap with project areas: piping plover and burrowing owl (endangered); loggerhead shrike and Sprague's pipit (threatened); and yellow rail, long-billed curlew, short-eared owl, northern leopard frog and Monarch butterfly (species of concern). Our operations have not had known impact on their habitats.

The area near our White Springs plant in Florida is home to species listed by federal or state authorities as endangered, threatened or of special concern. Potential impacts have been comprehensively evaluated for the project area. Wildlife agencies have determined that operations would have no impact on those species, or that impacts could be mitigated by minimizing operations in sensitive habitats, creating new habitats for relocation and raising awareness of potential impacts among workers.

Indirect GHG Emissions from Electricity
Indirect GHG emissions are an estimate of the emissions stemming from the net electricity purchased. Our Aurora, White Springs and Trinidad facilities sell electricity back to the grid, so curtailed production results in less electricity sold – which was the case at all three facilities in 2008 but most significantly at White Springs.

Other indirect GHG emissions are not tracked at present.

PotashCorp has targeted a 10 percent decrease in normalized GHG emissions by 2012, from 2.01 (2007) to 1.81 (2012). We plan to install GHG controls at nitric acid plants to achieve this target. We have installed monitors at Geismar and Lima to determine our nitrous oxide emissions baseline.

PotashCorp produces no ozone-depleting substances. The company uses small amounts of chlorofluorocarbons in refrigeration and cooling systems. This substance is phased out when systems are upgraded.

In 2008, PotashCorp's emissions of Criteria Air Pollutants from its operations were as follows:

Understanding how our products are handled helps shape our approach to product responsibility.

We assess, manage and communicate hazards associated with our products through our representatives and via Material Safety Data Sheets (MSDS) and Product Specification documents, all of which are available on our website. We regularly update this information to help users handle our products in a safe and environmentally responsible manner.

In fertilizer, product responsibility entails not only addressing proper handling issues but educating users about proper application, as excessive use, primarily of nitrogen, can result in runoff that can adversely affect water quality. To reduce runoff, we stress a 4R program: right source, right rate, right time, right place.

To promote the proper use of fertilizer, we also educate customers by working with trade associations such as The Fertilizer Institute (TFI), the Canadian Fertilizer Institute (CFI) and the International Plant Nutrition Institute (IPNI). TFI and CFI support more than 13,000 Certified Crop Advisors in North America, who help educate growers about best management practices in areas ranging from nutrient management to soil and water quality.

We also employ a staff agronomist, Kim Polizotto, Ph.D., who works closely with industry associations, academic researchers and growers, and always stresses proper application.

Fertilizer products and products sold for animal feed and industrial applications are not reclaimable.