The Potash Corporation of Saskatchewan (POT-T) has signed a letter of intent to purchase all the outstanding shares of potash producer Potash Company of Canada (Potacan) from equal partners Kali und Salz Beteiligungs of Germany and Entreprise Minire et Chimique of France.
On completion of the sale, Potash Corp. (PCS) plans to use Potacan’s mill in Clover Hill, near Sussex, N.B., to upgrade standard-grade potash from Saskatchewan to granular product for shipment into eastern Canada and the United States.
PCS will also look at converting the Potacan mine to solution mining and using the Potacan mill to process expanded potash production from PCS’s New Brunswick division, which produced 702,000 tonnes of potash in 1996.
The Potacan mine has a production shaft down to 853 metres, and the deposit is mined using room-and-pillar methods with delayed back-fill.
The mill has a design capacity of 1.3 million tonnes of potash annually, with a recovery rate of 87%. Some 90,000 tonnes of product can be stored on-site and another 115,000 tonnes can be housed in a facility in Saint John, N.B.
Potacan’s resources stand at 230 million tonnes grading 28% potash.
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