K+S Potash Canada and Canadian Pacific (CP) on July 10, signed an exclusive long-term, volume-based contract for the transportation of potash products from K+S Potash’s Legacy solution mining potash project 50 km north of Moose Jaw, Saskatchewan. The contract calls for potash to be moved from the Legacy site to a western Canadian port for export to overseas destinations and via CP’s extensive rail network to Canadian and U.S. markets. 

To accommodate the transportation needs of the Legacy site, CP will build a dedicated rail spur to the site. 

The Legacy project will be the first new greenfield potash mine built in Saskatchewan in nearly 40 years. Commissioning is scheduled for the summer of 2016, with ramp up to 2 million mt/y of production capacity by the end of 2017 and then gradual expansion to 2.86 million mt/y by 2023. 

Capital expenditures are budgeted at C$4.1 billion to reach the 2.86-million-mt/y production target. Further expansion is estimated to be as much as 4 million mt/y.

K+S Potash Canada is a subsidiary of Germany’s K+S Group, one of the world’s leading suppliers of standard and specialty fertilizers. The group employs more than 14,000 people worldwide.