SASKATOON, SK, March 23 /PRNewswire-FirstCall/ -- 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 complete.
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.
