SASKATCHEWAN – A long simmering dispute between Potash Corporation of Saskatchewan of Saskatoon and Minnesota-based Mosaic Company regarding the output of the Esterhazy potash mine has been settled.
PotashCorp will receive 1.1 million tonnes of product from the mine in 2011 and again in 2012. That rate was set by a 1971 agreement. The output will be credited to Mosaic beginning in 2013. The settlement also dismisses a counterclaim by Mosaic for damages arising when PotashCorp declared force majeure in April 2009.
“This settlement provides PotashCorp and its stakeholders with certainty through 2012 and dovetails with our ongoing potash expansion program, which will increase operational capability to 17.1 million tonnes by 2015,” said PotashCorp president and CEO Bill Doyle.
Production at the Esterhazy mine began in 1962, and the current annual capacity is 4.8 million tonnes. The mine is nearing the end of reserves.
Please see either www.PotashCorp.com or www.MosaicCo.com.