PotashCorp Announces Major Mine and Mill Expansion at Rocanville



    Listed:  TSX, NYSE
    Symbol: POT

    SASKATOON, SK, Nov. 14 /CNW/ - Potash Corporation of Saskatchewan Inc.
(PotashCorp) today announced plans for a 2-million-tonne mine and mill
expansion at Rocanville, SK, that will raise the company's total annual potash
capacity to 15.7 million tonnes by the end of 2012, which is three years
earlier than previously announced. By leveraging off the existing facilities
and infrastructure at Rocanville, which we believe is one of the lowest-cost
production facilities in the world potash industry, we expect to complete the
project in less than five years at an estimated cost of US $1.8 billion. This
would be significantly faster and over 25 percent less expensive than
comparative greenfield capacity, and will help maintain Rocanville's already
low-cost position.
    "For nearly 20 years we have optimized the value of our potash assets and
consistently served the needs of our customers by following our long-held
strategy of matching supply to market demand," said PotashCorp President and
CEO Bill Doyle. "With a global environment of growing demand and tight supply,
potash consumers around the world need us to bring more product to the table,
and this is our next step in meeting that need. The cost of a greenfield
operation has continually escalated and at a very rapid pace. Our best
estimate for a 2-million-tonne greenfield mine in Saskatchewan today is
US $2.5 billion, and that is only within the plant gate with no infrastructure
requirements."
    Rocanville, in southeastern Saskatchewan, is an extremely valuable asset
due to the quality of the potash deposit and its proximity to the US market.
The unique geology of the deposit allows for the most technically advanced
potash mining methods in the world to be applied, lowering our production
costs. To support this project, we will significantly expand an area of the
deposit adjacent to the existing Rocanville potash Crown lease. One new
service shaft - used to transport people and materials - will be sunk in this
new area of the deposit, while the existing service shaft will be converted to
a production shaft. When the project is completed, Rocanville will have two
shafts with ore-hoisting capability, substantially raising the volume of
potash that can be brought to the surface. A new underground conveyance system
will be constructed to transport ore from the new mining area to the
production shafts. This will reduce both the cost of the expansion and the
ramp-up time, as only one new shaft will be needed and existing underground
workings will partially support the increased production. Mining machines,
underground services and infrastructure for power will be added as required.
    A new mill that will process 2 million tonnes of additional finished
product annually will be built adjacent to the existing mill. New offices will
be constructed on the site of the new service shaft, while existing load-out,
storage and onsite rail capability can be leveraged to handle the increased
tonnes with minimal investment. The project will begin immediately after final
permitting approvals are received.
    The expansion will enable us to better respond to the continuing growth
in global potash demand, which is primarily driven by rising population and
increasing economic strength in Asia and Latin America that is enabling people
to shift to protein-rich diets. To keep pace with this growing demand, earlier
in the year we announced debottlenecking and expansion projects at Patience
Lake (returning 360,000 tonnes of idled capacity by 2009), Cory (a
1.2-million-tonne debottleneck and expansion by 2010) and New Brunswick (a new
2.0-million-tonne mine with ramp up starting at the end of 2011). However,
with the rest of the potash industry believed to be operating at or near
capacity, we expect the additional capacity at Rocanville to be necessary to
meet further demand growth. These projects, combined with expected other
future debottlenecking opportunities at our existing Saskatchewan facilities,
will raise our projected annual capacity to 15.7 million tonnes by the end of
2012 and 17.2 million tonnes by 2015.
    "We believe the factors driving long-term growth in potash demand are
unlikely to reverse," said Doyle. "As the company with the expertise and
ability to bring on significant capacity more quickly and at lower cost,
PotashCorp is well positioned to meet that demand. As we have in the past, we
will manage this capacity according to market demand, always striving to meet
the needs of our customers around the world while delivering value to the
investors who have supported our continued growth."
    Please see our website, www.potashcorp.com, for additional information
about the Rocanville expansion, including audio of a related
question-and-answer session with President and CEO Bill Doyle.

    Potash Corporation of Saskatchewan Inc. is the world's largest fertilizer
enterprise producing the three primary plant nutrients and a leading supplier
to three distinct market categories: agriculture, with the largest capacity in
the world in potash, third largest in phosphate and fourth largest in
nitrogen; animal nutrition, with the world's largest capacity in phosphate
feed ingredients; and industrial chemicals, as the largest global producer of
industrial nitrogen products and the world's largest capacity for production
of purified industrial phosphoric acid.

    This release contains forward-looking statements. These statements are
based on certain factors and assumptions as set forth in this release,
including foreign exchange rates, expected growth, results of operations,
performance, business prospects and opportunities, and effective income tax
rates. While the company considers these factors and assumptions to be
reasonable, based on information currently available, they may prove to be
incorrect. A number of factors could cause actual results to differ materially
from those in the forward-looking statements, including, but not limited to:
fluctuations in supply and demand in fertilizer, sulfur, transportation and
petrochemical markets; changes in competitive pressures, including pricing
pressures; risks associated with natural gas and other hedging activities;
changes in capital markets and corresponding effects on the company's
investments; changes in currency and exchange rates; unexpected geological or
environmental conditions; government policy changes; and earnings, exchange
rates and the decisions of taxing authorities, all of which could affect our
effective tax rates. Additional risks and uncertainties can be found in our
2006 financial review annual report and in filings with the U.S. Securities
and Exchange Commission and Canadian provincial securities commissions.
Forward-looking statements are given only as at the date of this release and
the company disclaims any obligation to update or revise the forward-looking
statements, whether as a result of new information, future events or
otherwise.

    %SEDAR: 00001608EF




For further information:

For further information: Investors, Tim Herrod, Manager, Investor
Relations, Phone: (306) 933-8543, Fax: (306) 933-8844, Email:
ir@potashcorp.com; Media, Rhonda Speiss, Manager, Public Relations, Phone:
(306) 933-8544, Fax: (306) 933-8844, pr@potashcorp.com; Web Site:
www.potashcorp.com


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