Canada Gensource Potash announces intention to increase capacity at Tugaske
HOUSTON (ICIS)–Gensource Potash Corporation has announced that it intends to increase capacity at their Tugaske project in Saskatchewan after reaching a further commitment from its strategic investor and offtake partner Helm AG and its subsidiary Helm Fertilizers.
As proposed, the companies plan to double the overall potash production capacity of the Tugaske project from 250,000 tonnes/year to 500,000 tonnes/year under a second phase by adding another module to Tugaske.
From the beginning of design the Tugaske project, including the on and off-site infrastructure, was built to accommodate two modules. It is expected that phase two will be implemented immediately following the completion of the first phase of the project.
Gensource said that with increased global demand in response to structural changes in the global agriculture and fertilizer markets that Helm sees significant opportunity for the sale of additional production through its existing channels, including having demand for organic potash.
Helm has also committed to guarantee a contingency account for Tugaske as is required by the bank financing for the project.
“These strategic commitments by Helm are a reflection of the strength and availability of Gensource’s modular technology to help meet immediate market needs and of the strong demand for potash” said Mike Ferguson, Gensource Potash CEO.
“The need for innovative solutions to bring new production to market is imperative, and with Helm’s continuing support, we are one step closer to bringing the Tugaske project into production. Providing incremental supply to the market is part of the solution to the current market imbalances.”