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Yara postpones Saskatchewan expansion project

Construction costs have played a large role in Yara International’s decision to postpone an expansion at its fertilizer plant in Belle Plaine, Sask. File / Global News

BELLE PLAINE, Sask. – Norwegian-based Yara International is postponing an expansion at its fertilizer plant in Belle Plaine, Sask., largely because of an increase in construction costs.

 The company says in a news release that the site west of Regina is still an optimal location for a future North American nitrogen expansion.

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 Yara says it will spend more time evaluating construction costs.

 President and CEO Jorgen Ole Haslestad says there’s a significant risk of future nitrogen over-supply in North America.

 Yara said a year ago that it would spend $1.3 billion to double capacity at the plant by 2016.

 The Belle Plaine facility has a current production capacity of 0.7 million tons of ammonia and 1.2 million tons of urea and urea ammonium nitrate a year.

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