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PotashCorp Announces Major Project at Cory Potash Facility
Wednesday May 2, 5:39 pm ET

SASKATOON, SK, May 2 /PRNewswire-FirstCall/ - Potash Corporation of Saskatchewan Inc. (PotashCorp) announced today that it will begin a major debottlenecking and expansion project that will increase potash production at its Cory, SK operation by 1.2 million tonnes from 2006 levels. The project will cost approximately US $775 million, which includes US $70 million for 750,000 tonnes of new compaction capacity.

In 2006, Cory produced approximately 800,000 tonnes of its 1.37 million tonne nameplate capacity, and currently makes only white potash products primarily for industrial customers. The project will involve debottlenecking of underground operations as well as a significant expansion into the production of red potash products. A new plant will be constructed for the crushing, flotation, centrifuging and drying of 2.0 million tonnes per year of red products, with up to 800,000 tonnes of this to be crystallized for white product production. Additionally, storage, load-out and rail yard capabilities will be expanded to support the new red product line. Work is scheduled to begin immediately and will take 36 months to complete.

This will increase capacity at Cory to 2.0 million tonnes and, combined with other announced projects in Saskatchewan, should raise PotashCorp's total production capability to 13.5 million tonnes by the second quarter of 2010. Beyond this, the company is considering additional projects at its facilities in New Brunswick and Saskatchewan that could raise its potential capacity to 15.7 million tonnes by 2015.

With a 12-16 percent increase in potash consumption expected in 2007 and further 3-4 percent annual increases anticipated through the end of the decade, global potash producers - with the exception of PotashCorp - are at or near their production limits. A new conventional greenfield mine requires a good deposit, 5-7 years' lead time to build and, according to recent external engineering estimates, an investment of $2 billion for 2 million tonnes of production. This Cory project will bring expanded production tonnage online more quickly and at a 40-percent discount to the estimated cost of a greenfield development.

"We believe that the world will need more potash, and we are in the best position to meet that demand," said PotashCorp President and CEO Bill Doyle. "For almost 20 years, we have patiently managed our potash resources, recognizing that significant and sustainable growth in global consumption would eventually arrive. Our project at Cory demonstrates the continuing execution of our Potash First strategy, as we will be bringing back capacity and expanding our product mix to meet the growing requirements for potash in offshore markets."

PotashCorp 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 with the world's largest purified industrial phosphoric acid production capacity.

Source: Potash Corporation of Saskatchewan Inc.

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