AMEC Awarded Contract to Manage Mine Upgrade

PotashCorp, the world's largest fertilizer enterprise, has awarded AMEC a contract to design and manage expansion of a leading potash mine.

Escalating global demand for the potash, a mineral essential to fertilizer, is expected to rise by more than 12 percent this year and is cited as one of the reasons PotashCorp will invest CDN $900 million (£430m) to upgrade its Cory Potash Mine in Saskatchewan, Canada.

Biofuels are contributing to the push for potash; they are emerging as a cleaner burning, renewable fuel source. Corn, sugar cane and other biofuel crops yield greater harvests when potash is used.

"We are delighted that PotashCorp has chosen AMEC," states Neil Bruce, Chief Operating Officer, Natural Resources. "Our leading position in the mining sector, ability to provide global talent, and 40 year commitment to PotashCorp are reasons we look forward to this project."

"A growing demand for high quality food and biofuels are contributing to the heightened demand for potash," states PotashCorp President and CEO Bill Doyle. "We are increasing our production capabilities to fulfil the growing needs of markets around the world. For this reason, we look forward to continuing our long-standing relationship with AMEC." PotashCorp is the world's largest potash producer.

The Cory Potash Mine debottlenecking and expansion project will increase the site's mining and hoisting capability, extend the mine's warehousing and loading facilities, increase production capacity to 2 million tonnes, and create a new facility to produce red potash.

This project will raise capacity from 2006 production levels by 1.2 million tonnes to a total production capacity of two million tonnes.

Work will begin immediately and is expected to take 36 months to complete. AMEC will earn approximately CDN $75 million (£36m) for providing the engineering, procurement, construction management and project management (EPCM) services for the project.

PotashCorp formally known as Potash Corporation of Saskatchewan Inc., is an integrated producer of fertilizer, industrial and animal feed products. It is the world's largest fertilizer enterprise by capacity, producing the three primary plant nutrients - potash, nitrogen and phosphate. PotashCorp is a leading supplier to three distinct market categories: agriculture, animal nutrition and industrial chemicals.

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Posted 20/06/07

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