Expansion Envisioned as K+S Potash Legacy Mine Nears Commissioning in Saskatchewan

Researched by Industrial Info Resources (Sugar Land, Texas)--K+S Potash Canada, a subsidiary of K+S Aktiengesellschaft Group (Kassel, Germany) is scheduled to start commissioning activities in August for the new Legacy Potash Mine in Saskatchewan, Canada. Once fully operational toward the end of 2016, the solution mining operation is designed to produce 2 million tons per year.

Industrial Info first reported the $4.1 billion Legacy Potash Project in 2009 when it was owned by Canadian firm Potash One. At that time, the estimated cost for the project was $1.5 billion. SNC Lavalin conducted the prefeasibility study at that time. K+S entered the North American market by acquiring the project in 2011. Construction began in 2012 on land near the Mosaic Belle Plaine Potash Solution Mine. AMEC Foster Wheeler (NYSE:AFMW) (London, England) is providing engineering, procurement and construction (EPC) management services for the project.

Canada is the world's largest country for potash production. There are currently 12 operational potash mines in Canada. All except for one of those, Potash Corporation of Saskatchewan's (NYSE:POT) (PotashCorp) (Saskatoon, Saskatchewan) Penobsquis Mine in New Brunswick, are located in Saskatchewan.

A second and third phase expansion of Legacy is in the works, which is planned to expand capacity up to 2.86 million tons per year in the second phase and 4 million tons per year in the third phase. Construction could start on the second phase in 2019 pending favorable market conditions.

In 2014, K+S Potash signed a long-term contract with Pacific Coast Terminals Company Limited to use that company's Port Moody Terminal in British Columbia to store and export up to 2.8 million tons per year of potash. Pacific Coast Terminals is currently expanding its facilities at Port Moody at a cost of about $170 million. Construction of that project is expected to be completed by the end of the year to tie into start-up of operations at Legacy. Potash will be railed from the Legacy mine to the Port Moody terminal.

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