K+S Potash & Canadian Pacific Sign Potash Contract

10:57AM Jul 11, 2013
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railThe world's leading salt mining company announces a new contract with Canadian Pacific Railway for the transport of potash from a greenfield K project in Saskatchewan. K+S Potash Canada, a fully owned subsidiary of K+S Aktiengesellschaft, expects production to begin in summer 2016 and the rail contract will keep product moving from the mines and facilities near Moose Jaw and Regina to ports and other downstream supply points.

“We are glad to have found Canadian Pacific as the perfect partner and strategic fit for our transportation needs in Canada. Canadian Pacific offers an excellent logistics service and we are looking forward to this long-term partnership”, says Dr. Ulrich Lamp, President and Chief Executive Officer of K+S Potash Canada.

K+S is putting its more than one hundred years of mining experience and world-class expertise to work on the Legacy Project potash mine and production facility near Moose Jaw. It will be the first new greenfield potash mine built in Saskatchewan in nearly forty years. In the first two expansion phases of the new potash site, K+S will invest a total of 4.1 billion Canadian dollars. Production from the mine is expected to reach the two-million-tonnes mark by the end of 2017. The Legacy Project will offer new job opportunities for Saskatchewan workers, and new business opportunities for Saskatchewan companies supplying goods and services to this important economic development.

“Canadian Pacific is extremely pleased to be a partner with K+S Potash Canada in providing the capability to move potash to market via our rail-direct network,” said CP President and Chief Operating Officer, Keith Creel. “The capacity, flexibility and market access of CP’s network on our Western corridor, as well as efficient route options into the United States, ensures a growth opportunity for both companies.”