Reports related to this article:
Project(s): View 10 related projects in PECWeb
Plant(s): View 10 related plants in PECWeb
Released August 19, 2015 | SUGAR LAND
en
Researched by Industrial Info Resources (Sugar Land, Texas)--The Earth is now home to more than 7 billion people, which is a lot of mouths to feed, by anyone's account. That number is expected to rise to 9 billion by 2040. As such, Canada, with its bountiful supplies of the fertilizer potash, is a key player in maintaining global food crop growth. Industrial Info is tracking a grand total of 27 active potash projects in North America, with a combined investment value of $34.34 billion (USD). Canada's province of Saskatchewan alone has 17 projects worth nearly $30.7 billion.
One of world's largest producers of potash, Canada accounts for 30% of the mineral's total global production, and holds 46% of the world's reserves, according to Canpotex (Saskatoon, Saskatchewan), the export arm of Canada's potash industry. Canpotex sells more than 9 million tons of potash per year, primarily to countries in Asia, Latin America and Oceania.
Of the 27 active potash projects in North America, only 11, valued at $10.6 billion, are in the construction phases, while 16 projects, valued at $23.7 billion, are in the planning phases, where a variety of factors could alter their outcome.
Listed below are the top 10 potash projects by value in North America. Saskatchewan is home to all but one of those projects.
10. Construction is under way on Stage 2 of the Mosaic Company's (NYSE:MOS) (Plymouth, Minnesota) $1.5 billion Esterhazy underground mine project in Saskatchewan, with completion set for fourth-quarter 2016. Part of a $2 billion expansion, the second stage will produce an estimated 3.3 million tons of potash per year, bringing total annual capacity at the site to 7 million tons. Hatch (Mississauga, Ontario) is providing engineering, procurement and construction management (EPC/M) services.
9. The planned $1.9 billion, 2.5 million-ton-per-year muriate of potash mine by Passport Potash (Vancouver, British Columbia) at Holbrook, Arizona, is the only U.S. entry in the top 10 list. Passport Potash has decided against in-situ recovery solution mining in favor of conventional underground mining. Kickoff would take place in fourth-quarter 2016, with completion in fourth-quarter 2018.
Recently appointed Chief Executive Officer David Salisbury acknowledged in a press statement that the company has undergone a "difficult period," but added: "I am convinced that we can turn things around. I maintain that this is still one of the best new potash projects in the world, with solid fundamentals and great potential."
8. The grassroot Muskowekwan project, located at Lestock, Saskatchewan, would produce 2.8 million tons per year. Encanto Potash Corporation (Vancouver) is working with the Muskowekwan First Nations on the $2.5 billion project. Encanto says the project, which is located on Muskowekwan First Nations land, has 162 million tonnes of recoverable proven and probable reserves.
The company has been conducting a feasibility study, site explorations, detailed design work and permitting. Construction kick-off would take place in second-quarter 2016, with completion in third-quarter 2019.
7. Located at Jansen, Saskatchewan, BHP Billiton's (NYSE:BHP) (Melbourne, Australia) $2.6 billion grassroot mine and mill is set for completion in the fourth quarter of this year. It is part of a three-phase, $16 billion project, which could produce 22 million tons per year. SNC-Lavalin Group (Montreal, Quebec) is serving as the EPC/M provider.
6. Completion of Potash Corporation of Saskatchewan's (NYSE:POT) (Saskatoon) Rocanville underground mine expansion in Saskatchewan is set for this September. The $2.8 billion project, which kicked off in 2009, will increase capacity to 5.7 million tons per year from the current 3 million tons per year. Amec Foster Wheeler (NYSE:AMFW) is performing the EPC/M work.
5-4 (tie). Construction of Yancoal Canada Resources' (Saskatoon) $3 billion grassroot underground potash solution mine and process mine at Southey, Saskatchewan, would kick off in second-quarter 2016, with completion in fourth-quarter 2019. The operation could produce 2.8 million tons per year. Feasibility studies are under way, with WorleyParsons (North Sydney, Australia) serving as process consultant.
5-4 (tie). North Atlantic Potash (Saskatoon), a subsidiary of Acron Group (Velikiy, Russia), has formed a 60:40 joint venture with Rio Tinto plc (NYSE:RIO) (London, England) to perform a site study for the potential grassroot Albany potash solution mine and process plant, which also would be located at Southey. If the $3 billion project proceeds, it would produce 3 million tons per year over a 100-year mine life. Construction would kick off in fourth-quarter 2017, with completion in fourth-quarter 2019.
3. The proposed $3.3 billion in-situ potash solution mine and process plant in Milestone, Saskatchewan, would produce 2.8 million tons per year over a 40-year lifespan. Western Potash Corporation (TSX:WPX) (Vancouver) was trying to find funding partners for the proposed $3.3 billion project, with construction kick-off in fourth-quarter 2016 and completion in fourth-quarter 2018. The project will move forward when financing is secured.
2. Vale Potash Canada, a subsidiary of Vale S.A. (NYSE:VALE) (Rio de Janeiro, Brazil), is continuing with feasibility studies for the grassoot Kronau in-situ potash solution mine and process plant in Regina, Saskatchewan. The $3.5 billion mine would produce 3 million to 4 million tons per year. WorleyParsons is performing feasibility work and design engineering for the plan. Kick-off would take place in third-quarter 2017, with completion in fourth-quarter 2019.
1. Finally, construction is under way on Phase I of K+S Potash Canada's (Saskatoon) Legacy grassroot mine and process plant, located at Bethune, Saskatchewan. Construction of the $3.7 billion project kicked off in 2012, with completion planned for third-quarter 2016. The Phase I operation will ramp up to 2 million tons per year. Phase II, with a $600 million price tag, would increase production to 2.86 million tons per year in 2023. A $1 billion third phase, to be completed in 2034, would increase capacity to 4 million tons per year.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
One of world's largest producers of potash, Canada accounts for 30% of the mineral's total global production, and holds 46% of the world's reserves, according to Canpotex (Saskatoon, Saskatchewan), the export arm of Canada's potash industry. Canpotex sells more than 9 million tons of potash per year, primarily to countries in Asia, Latin America and Oceania.
Of the 27 active potash projects in North America, only 11, valued at $10.6 billion, are in the construction phases, while 16 projects, valued at $23.7 billion, are in the planning phases, where a variety of factors could alter their outcome.
Listed below are the top 10 potash projects by value in North America. Saskatchewan is home to all but one of those projects.
10. Construction is under way on Stage 2 of the Mosaic Company's (NYSE:MOS) (Plymouth, Minnesota) $1.5 billion Esterhazy underground mine project in Saskatchewan, with completion set for fourth-quarter 2016. Part of a $2 billion expansion, the second stage will produce an estimated 3.3 million tons of potash per year, bringing total annual capacity at the site to 7 million tons. Hatch (Mississauga, Ontario) is providing engineering, procurement and construction management (EPC/M) services.
9. The planned $1.9 billion, 2.5 million-ton-per-year muriate of potash mine by Passport Potash (Vancouver, British Columbia) at Holbrook, Arizona, is the only U.S. entry in the top 10 list. Passport Potash has decided against in-situ recovery solution mining in favor of conventional underground mining. Kickoff would take place in fourth-quarter 2016, with completion in fourth-quarter 2018.
Recently appointed Chief Executive Officer David Salisbury acknowledged in a press statement that the company has undergone a "difficult period," but added: "I am convinced that we can turn things around. I maintain that this is still one of the best new potash projects in the world, with solid fundamentals and great potential."
8. The grassroot Muskowekwan project, located at Lestock, Saskatchewan, would produce 2.8 million tons per year. Encanto Potash Corporation (Vancouver) is working with the Muskowekwan First Nations on the $2.5 billion project. Encanto says the project, which is located on Muskowekwan First Nations land, has 162 million tonnes of recoverable proven and probable reserves.
The company has been conducting a feasibility study, site explorations, detailed design work and permitting. Construction kick-off would take place in second-quarter 2016, with completion in third-quarter 2019.
7. Located at Jansen, Saskatchewan, BHP Billiton's (NYSE:BHP) (Melbourne, Australia) $2.6 billion grassroot mine and mill is set for completion in the fourth quarter of this year. It is part of a three-phase, $16 billion project, which could produce 22 million tons per year. SNC-Lavalin Group (Montreal, Quebec) is serving as the EPC/M provider.
6. Completion of Potash Corporation of Saskatchewan's (NYSE:POT) (Saskatoon) Rocanville underground mine expansion in Saskatchewan is set for this September. The $2.8 billion project, which kicked off in 2009, will increase capacity to 5.7 million tons per year from the current 3 million tons per year. Amec Foster Wheeler (NYSE:AMFW) is performing the EPC/M work.
5-4 (tie). Construction of Yancoal Canada Resources' (Saskatoon) $3 billion grassroot underground potash solution mine and process mine at Southey, Saskatchewan, would kick off in second-quarter 2016, with completion in fourth-quarter 2019. The operation could produce 2.8 million tons per year. Feasibility studies are under way, with WorleyParsons (North Sydney, Australia) serving as process consultant.
5-4 (tie). North Atlantic Potash (Saskatoon), a subsidiary of Acron Group (Velikiy, Russia), has formed a 60:40 joint venture with Rio Tinto plc (NYSE:RIO) (London, England) to perform a site study for the potential grassroot Albany potash solution mine and process plant, which also would be located at Southey. If the $3 billion project proceeds, it would produce 3 million tons per year over a 100-year mine life. Construction would kick off in fourth-quarter 2017, with completion in fourth-quarter 2019.
3. The proposed $3.3 billion in-situ potash solution mine and process plant in Milestone, Saskatchewan, would produce 2.8 million tons per year over a 40-year lifespan. Western Potash Corporation (TSX:WPX) (Vancouver) was trying to find funding partners for the proposed $3.3 billion project, with construction kick-off in fourth-quarter 2016 and completion in fourth-quarter 2018. The project will move forward when financing is secured.
2. Vale Potash Canada, a subsidiary of Vale S.A. (NYSE:VALE) (Rio de Janeiro, Brazil), is continuing with feasibility studies for the grassoot Kronau in-situ potash solution mine and process plant in Regina, Saskatchewan. The $3.5 billion mine would produce 3 million to 4 million tons per year. WorleyParsons is performing feasibility work and design engineering for the plan. Kick-off would take place in third-quarter 2017, with completion in fourth-quarter 2019.
1. Finally, construction is under way on Phase I of K+S Potash Canada's (Saskatoon) Legacy grassroot mine and process plant, located at Bethune, Saskatchewan. Construction of the $3.7 billion project kicked off in 2012, with completion planned for third-quarter 2016. The Phase I operation will ramp up to 2 million tons per year. Phase II, with a $600 million price tag, would increase production to 2.86 million tons per year in 2023. A $1 billion third phase, to be completed in 2034, would increase capacity to 4 million tons per year.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
