Globe says Potash Corp. to increase mining output

2008-07-18 07:26 ET - In the News

The Globe and Mail reports in its Friday edition that global demand for fertilizer is so hot that Potash Corp. of Saskatchewan is expanding its already ambitious expansion plans. The Globe's John Partridge writes the Saskatoon miner said Thursday it wants to boost its annual potash production capacity to 18 million tonnes by the end of 2012. That is up from the previous target of 15.7 million tonnes and its current capacity of 10.2 million tonnes. Potash Corp. will add 2.7 million tonnes at three of its Saskatchewan mines -- Rocanville, Allan and Cory -- starting right away, at a cost of $1.6-billion (U.S.). The company said in April that it had budgeted $4.5-billion (U.S.) to expand its Saskatchewan and New Brunswick operations. "It is clear that global potash demand is continuing to grow more quickly than increases in supply," Bill Doyle, the company's chief executive officer, said in the release. Mr. Doyle added the mine expansions are "faster and more cost-effective" than building a new mine. Costs are estimated to rise by $1-billion (U.S.) to $2.8-billion (U.S.), the company said. Potash Corp. shares closed Thursday at $215.31, down $8.75 on the Toronto Stock Exchange