SASKATOON - At an estimated cost of US$1.8 billion, Potash Corp. of Saskatchewan Inc. (TSX:POT) is planning a mine and mill expansion at Rocanville, Sask.
The project will raise the company's total annual potash capacity by two million tonnes to 15.7 million tonnes by end of 2012, three years ahead of previous expectations, Saskatoon-based Potash Corp. said Wednesday.
"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," said CEO Bill Doyle.
He added that the company estimates the cost of a wholly new potash mine development in Saskatchewan would be US$2.5 billion - about 40 per cent more than the planned expansion.
Rocanville, in southeastern Saskatchewan, "is an extremely valuable asset due to the quality of the potash deposit and its proximity to the U.S. market," the company stated.
"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."
More MONEY Headlines »
- Oil rises above $99 US a barrel
- Crude oil prices rose above a record $99 US per barrel Wednesday as worries about inadequate winter supplies in the Northern Hemisphere and news of refinery problems stoked bullish sentiment.
- New car sales drag down September retail figures
- Canada's retail activity slowed in September by 0.2 per cent as sales at new car dealers eased off.
- Inflation rate eases to 2.4%
- Canada's annual inflation rate unexpectedly dropped in October, raising the odds of an interest rate cut from the Bank of Canada.
- Travellers yet to claim $758,000 in Canada 3000 refunds
- About $758,000 is being held for travellers who six years ago booked their airline tickets with Canada 3000, the accounting firm PricewaterhouseCoopers said Wednesday.
- Canadian trips to the U.S. hit six-year high in Sept.
- Buoyed by the loftiness of the loonie, one-day car trips by Canadians to the United States hit a six-year high in September as shoppers floated over the border.