SASKATOON – K+S has increased its capital expenditure for a new potash plant in Saskatchewan.
The German company announced today the supervisory board has approved a decision by the board of directors to increase the budget for the new plant north of Regina to $4.1 billion from $3.25 billion.
The new plan includes investments into the company’s infrastructure, modification of plant components along with increased material and labour costs.
Basic engineering and cost analysis of the project is now at the advanced stage.
“Legacy strengthens the K+S Group’s competitiveness and opens attractive prospects for many decades,” said Nobert Steiner, chairman of the executive board of directors.
“In the future, the new plant will be the main source for distributing to emerging regions in Asia, South America and as well as to North America.”
Production is expected to start at the end of 2015 with commissioning in the summer of 2016.
The company expects to reach two-million-tonnes production capacity at the end of 2017 with a gradual extension of annual capacity to 2.86 million tonnes of potash.
When completed, Legacy will be the first new greenfield potash mine in Saskatchewan in nearly 40 years.
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