29 November 2011 13:21 [Source: ICIS news]
LONDON (ICIS)--K+S's supervisory board has approved the plan to implement the company's Legacy Project, an advanced ?xml:namespace>
The company’s board of executive directors approved a capital expenditure totalling Canadian dollars (C$) 3.25bn ($3.13bn, €2.36bn) for the project, located about 50km north of the city of
Initial production and first volumes are expected in 2015. By 2017, the 2m tonne/year mark should be reached. This will be followed by the gradual expansion of production capacity to 2.86m tonnes/year by 2023.
"The Legacy Project is a significant step towards the expansion of our potash capacities and enables us to participate in the growth of the global potash market,” said Norbert Steiner, chairman of the board of executive directors of K+S.
"Together with our existing potash mines in
In a further expansion phase, total output of 4m tonnes/year of potassium chloride would be achieved about ten years later, K+S said. Initial infrastructure construction works in the areas of water supply and electricity and road development, as well as drilling activities, have already begun at the site.
The company added that the initial exploration area at the Legacy Project, which only makes up a small part of the total permitted area of K+S Potash Canada, formerly Canadian fertilizer producer Potash One, has proven reserves of 160m tonnes of final potash product. Considering the target annual production, this signifies a useful life of more than 55 years, K+S said.
K+S said the project, which will be financed predominantly through liquidity and future cash flows, will probably in 2016 be significantly positive in terms of earnings before interest, tax, depreciation and amortisation (EBITDA) and that earnings before interest and tax (EBIT) practically should reach the profit threshold.
“Our Legacy Project is one of the world’s economically most attractive g
K+S said that in future, the site will be the starting point primarily for sales to the emerging growth markets of Asia and South America and to
($1 = C$1.04, €1 = C$1.38)
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