Listed: TSX, NYSE Symbol: POT
SASKATOON, SK, July 17 /CNW/ - Potash Corporation of Saskatchewan Inc.
(PotashCorp) today announced plans to add 2.7 million tonnes of potash
capacity at three of its Saskatchewan facilities. This capacity will be
achieved through a new debottlenecking project at Allan and increases in the
scope of projects announced in 2007 for Cory and Rocanville. Work on all three
projects will be initiated immediately. These projects carry a combined cost
of US $1.6 billion and will raise PotashCorp's operational capacity to 18
million tonnes by the end of 2012. The cost is approximately 60 percent less
than that estimated for comparable greenfield capacity, and the projects will
make the additional production available much more quickly than a new mine
could be developed.
The Allan debottlenecking will add 1 million tonnes of annual production
capability and raise its annual capacity to 3 million tonnes per year.
Construction and ramp-up are scheduled for completion by the end of 2012. This
project, which follows a 400,000-tonne expansion completed in 2007, has an
estimated cost of US $350 million. At Cory, the new project will add 1 million
tonnes to a 1.2-million-tonne-per-year debottlenecking and expansion project
initiated in 2007. The initial project is scheduled for completion in 2010,
with construction and ramp-up of the new project completed by the end of 2012.
The additional work has an estimated cost of US $220 million and will raise
the facility's annual capacity to 3 million tonnes.
At Rocanville, an additional 700,000 tonnes of capacity will be
incorporated into the 2-million-tonne mine and mill project announced in 2007.
With an additional investment of US $1.0 billion, the project now is expected
to add a total of 2.7 million tonnes at a cost of US $2.8 billion and raise
the facility's annual capacity to 5.7 million tonnes. Construction is
scheduled for completion at the end of 2012 with ramp-up over the following
These projects represent the continuation of a long-term potash capacity
expansion program that includes completed work at Rocanville (2005), Allan and
Esterhazy (2007) and Lanigan (2008), as well as in-progress construction
projects scheduled for completion at Patience Lake (2008), Cory (2010), New
Brunswick (2011) and Rocanville, Allan and Cory (2012). The financing for all
projects is expected to be from free cash flow.
"It is clear that global potash demand is continuing to grow more quickly
than increases in supply," said PotashCorp President and Chief Executive
Officer Bill Doyle. "With our unmatched potash assets, we can provide a
solution that is faster and more cost-effective than greenfield production.
Since 2003 we've been investing in projects to raise previously idled capacity
and then expand capacity at each of our mines, and these projects further
support our long-term growth strategy. Our objective is to bring our valuable
resources on stream to better serve our customers and meet global demand while
delivering increasingly strong results for our shareholders."
Please see our website, www.potashcorp.com, for important additional
information about these debottlenecking and expansion projects, including
audio of a related question-and-answer session with President and CEO
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, second largest in nitrogen and third largest in
phosphate; 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 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; timing and amount of
capital expenditures; 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, including water inflow; strikes and
other forms of work stoppage or slowdowns; changes in and the effects of,
government policy and regulations; 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 Form 10-K for
the fiscal year ended December 31, 2007 under captions "Forward-Looking
Statements" and "Item 1A - Risk Factors" and in our filings with the US
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, except as required by law.
For further information:
For further information: Investors: Denita Stann, Director, Investor
Relations, Phone: (847) 849-4277, Email: firstname.lastname@example.org; Media: Rhonda
Speiss, Manager, Public Relations, Phone: (306) 933-8544, Email:
email@example.com, Web Site: www.potashcorp.com