K+S Group reports that its supervisory board has agreed to increase the capital expenditures budget for the Legacy Potash Project in Saskatchewan to C$4.1 billion from the C$3.25 billion earlier assessed based on the feasibility study conducted in November 2011.
The now presented plan includes investments into K+S’s own infrastructure, modifications of plant components and infrastructure as well as increased material and labor costs. The adjustments to the budget were identified in a very early stage of the project. “The additional findings strengthen the predictability, transparency, and controlling as well as our major project overall,” says Norbert Steiner, K+S chairman.
With the expected commissioning in summer 2016 the company still projects to reach 2 million mt/y production capacity at the new location at the end of 2017. The gradual extension of the annual capacity to 2.86 million mt/y of potash products will occur afterwards. So far the company assumed a production start at the end of 2015. The annual production capacity of the existing K+S sites is up to 7.5 million mt/y of potash and magnesium products.