Agrium Potash Expansion Projects Plow Forward

---

Researched by Industrial Info Resources (Sugar Land, Texas)--Acting on the premise that the long-term demand for fertilizer will remain strong despite the economic downturn, Agrium Incorporated (NYSE:AGU) (Calgary, Alberta), the third-largest potash producer in North America, will move forward with a planned $500 million brownfield expansion at its potash mine in Vanscoy, Saskatchewan, and a planned $2.5 billion greenfield Triton potash mine addition near Otthon, Saskatchewan.

As a two-phase project, the company is performing feasibility studies to expand and upgrade its Vanscoy 2.1 million-ton-year potash underground mine and processing plant to increase capacity by an additional 750,000 tons per year. Agrium awarded the engineering, procurement and construction contract to a consortium comprised of SNC Lavalin Incorporated (Montreal, Quebec) and PCL Industrial Management Incorporated (Edmonton, Alberta) to develop the engineering and ultimately complete the expansion. Associated Mining Construction Incorporated (Regina, Saskatchewan), a Thyssen Mining Incorporated (Regina) and JS Redpath Limited (North Bay, Ontario) joint venture, secured the subcontractor for the hoisting system installation and underground upgrade work. Major construction is scheduled to kick off throughout most of 2012 and 2013, expecting final project approval to occur in late 2010. With the anticipation of Phase I completion in late 2013 and Phase II in late 2014, the full 2.8 million-ton-per-year production capacity is expected in 2015.

AMC, the assigned consultant, is in the process of completing the prefeasibility study on the greenfield Triton 2 million-ton-per-year underground potash mine and processing plant. The work entails the sinking of two shafts and early underground development. Agrium has secured options for land in the rural municipality of Cana near Otthon, Saskatchewan, about 15 kilometers northeast of Melville, as the potential site. The company is exploring two alternative sites in Saskatchewan, Fenwood, and southeast of Vanscoy. The fourth possible site is southwest of Saint Lazare, Manitoba. Pending environmental permit approval, Agrium hopes to obtain a decision by the board in early 2011, with groundbreaking later in the year. Once operations are ramped up, the Triton potash mine could provide up to 500 jobs.

Agrium is a major retailer of agricultural products and services in North America and South America. Agrium produces and markets all three primary groups of nutrients: nitrogen, phosphate and potash, as well as controlled-release fertilizers and micronutrients.

View Plant Profile - 2017100 1090816
View Project Report - 55000366 55000472

Industrial Info Resources (IIR) is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy related markets. For more than 26 years, Industrial Info has provided plant and project opportunity databases, market forecasts, high resolution maps, and daily industry news.