PotashCorp Announces Major Mine and Mill Expansion at Rocanville
Potash Corporation of Saskatchewan Inc. (PotashCorp) 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, PotashCorp expects 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."
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.
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