The first new
potash mine in 40 years is scheduled to open the end of next month in
Saskatchewan.
It is the
biggest project K+S AG of Germany has undertaken, and it’s coming on line with prices
much lower than when it began digging the multi-billion-dollar mine five years
ago.
"To tell
you the truth, we made the investment decision at a time when prices were
significantly higher," said chief executive officer Norbert Steiner during
an opening ceremony at the site near Bethune, about 70 kilometres north of
Regina.
"But
still, we are of the opinion that the cost that we will have for the production
of our products here in Saskatchewan will be significantly lower compared to
the prices that we have right now in the industry and, therefore, we foresee
that we have a positive (earnings before interest, taxes and amortization)
already in 2018 and of course the better years will come afterwards," he
said.
The company
aims to reach capacity of two million tonnes by the end of this year.
The mining
technique involves dissolving potash in water, pumping it 1.5 kilometres to the
surface where the minerals are recovered.
K+S will not be
joining the export cartel that the federal and Saskatchewan governments condone
for Potash Corporation of Saskatchewan, Mosaic and Agrium.
Potash Corp. is in
the process of buying Agrium, the world's largest fertilizer retailer.
