Potash Corporation of Saskatchewan Inc. will bring back 1.9 million tonnes of its idle production capacity in Saskatchewan, following a Government of Saskatchewan announcement of new provincial mining tax incentives for potash capital projects.

The Lanigan phase I mill restoration will contribute an additional 1.5 million tonnes of annual production capability, while Allan will contribute 400,000 tonnes per year. In total, the two projects will cost US $275 million. To reach its full capacity of 12.5 million tonnes, PotashCorp is also evaluating two smaller projects at its Cory and Patience Lake mines to more fully utilize their production capability. While engineering studies are not yet complete, current cost estimates of these projects are in the range of US $120 million to $140 million.

The company's total investment in Lanigan and Allan, including compaction capacity, will be approximately US $380 million (CDN $456 million). Allan's capacity is expected to come on stream in April 2006, with Lanigan's new production coming on in the fourth quarter of 2007.

Source: PRNewswire