Agrium Saskatchewan potash mine to grow

Agrium Inc. plans to proceed with a 310,000 tonne potash expansion at its Vanscoy, Saskatchewan, potash mine, the company said in an April 11 statement. The expansion will increase Agrium's total annual potash capacity to 2.1 million tonnes. Construction is scheduled to begin in July. The additional production will come on line in late 2006.

Agrium is evaluating an additional similar-sized expansion to further increase mine capacity. "We expect global supply and demand for potash to remain tight for the foreseeable future and remain committed to meeting the challenge of supplying the growing global demand for all nutrients," said Mike Wilson, president and CEO of Agrium.

Saskatchewan government tax relief for new potash investment was the key to final approval for the $65 million project, Wilson said.

Agrium is the third largest potash producer in North America, with total annual sales in excess of $200 million.