PotashCorp to Bring Back Idled Capacity at Patience Lake Facility

    Listed: TSX, NYSE
    Symbol: POT

    SASKATOON, SK, March 23 /CNW/ - Potash Corporation of Saskatchewan Inc.
(PotashCorp) announced today that it will, pending regulatory approvals, bring
back 360,000 tonnes of previously idled potash capacity at its Patience Lake,
SK solution mine. This facility is forecast to produce 240,000 tonnes in 2007.
Approximately US$92 million will be invested in the construction of
approximately 20 additional injection wells and pumping and piping systems to
serve them. Only minor mill modifications will be necessary to handle the
additional production, and the project is estimated to take 18 months to
    This Patience Lake project is the next step in PotashCorp's overall plan
to increase production capacity from an available capability of 10.0 million
tonnes in 2006 to 13.5 million tonnes by the end of 2010. Along with this
reinstatement of Patience Lake capacity, debottlenecking projects at Allan and
Lanigan announced in April 2005 will raise capacity by 400,000 and 1.5 million
tonnes, respectively. The Allan project, which includes 500,000 tonnes of new
compaction capacity, will be operational by April 1, 2007, while the Lanigan
increase is expected to be completed in the second quarter of 2008.
Debottlenecking and expansion plans for the Cory and New Brunswick facilities
are being finalized and will be reviewed by PotashCorp's Board of Directors in
the near future. Additional expansion projects in Saskatchewan are also being
considered. Combined, these projects could raise total production capability
to 15.7 million tonnes by 2015. Further detailed announcements will be made as
plans are finalized.
    "This is consistent with our long-held strategy of matching our
production to meet market demand," said Bill Doyle, PotashCorp President and
CEO. "With global potash demand rising, we will continue to capitalize on the
unique strengths of our excess capacity and our ability to access it quickly
at roughly one-quarter of the cost of an equivalent greenfield operation. We
have 75 percent of the world's unused potash capacity and will draw upon it
according to the needs of our customers."

    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 one of only three North American suppliers of
industrial phosphates.

    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 and business prospects and opportunities. 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, natural gas, transportation and petrochemical markets;
changes in competitive pressures, including pricing pressures; risks
associated with natural gas and other hedging activities; changes in capital
markets; changes in currency and exchange rates; unexpected geological or
environmental conditions; and government policy changes. Additional risks and
uncertainties can be found in our 2006 annual report to shareholders 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: Denita Stann, Director, Investor 
Relations, Phone: (847) 849-4277, Fax: (847) 849-4691, E-mail: 
ir@potashcorp.com; Media: Rhonda Speiss, Manager, Public Relations, Phone: 
(306) 933-8544, Fax: (306) 933-8844, E-mail: pr@potashcorp.com; Web Site: 

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