Canadian Mining Journal


POTASH: Western executes binding offtake agreement for Milestone

Phase one of the Milestone mine has a capex of $120 million to create an in situ potash mine producing 146,000 tonnes per year. (Image: Western Potash)

SASKATCHEWAN – Western Potash Corp. of Vancouver has entered into a binding offtake agreement with Archer Daniels Midland Co. for 100% of the potash production – 146,000 tonnes per year – from the first phase of the Milestone project 30 km southeast of Regina.

Western says the agreement is binding but declined to offer a price for the potash. Instead it said “a structure to incentivize the best final sale price for both parties” will be created. The fertilizer will be sold FOB mine site and trucked 13 km to the Port Lajord Terminal.

Production drilling began in July 2014 at Milestone. This is an in situ project that will leave no salt tailings on the surface. Using this method also significantly reduces water consumption.

Construction of surface facilities has started, and should be complete in mid-2020. Western expects potash production to begin by the end of next year.

Detailed information about the Milestone potash project – including an animated fly-over of the site – can be found at