Potash Expansion Program - Saskatchewan Mining Association

The Mosaic Company
We help the world grow the food it needs
Bruce Bodine, Esterhazy General Manager
SMA Saskatchewan Mining Week
Thursday, May 30, 2013
Video: 50 Years of Potash in Esterhazy
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About The Mosaic Company
• Mosaic manufactures and markets potash
and phosphate
• 100 years of phosphate mining history in
the United States
• 50 years of potash mining history in
Canada
• Fortune 500 company
• Operations in eight countries, serving
customers in more than 40 countries
• $11.1 billion in sales (FY’ 12)
• Over 8,000 employees
• NYSE company: MOS
Mosaic - An Industry Leader
WORLD’S LARGEST P&K COMPANIES
Mosaic
PotashCorp
Belaruskali
Israel Chemicals
OCP
K+S
Silvinit
Uralkali
GCT
K2O
P205
Yuntianhua
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MILLION TONNES PRODUCTION, 3 YEAR AVERAGE
SOURCE: IFA, COMPANY REPORTS AND MOSAIC ESTIMATE
Unparalleled Global Reach
• Physical presence in every key region around the world
• Helps us achieve our goal of being recognized as the best crop
nutrient company in the world
• Manufacturing plants, blending and bagging facilities, port
facilities and other distribution operations
Our Role in Feeding the World
• Population growth
– Increasing at approximately 1.1 percent
(73 million people) per year
• Prosperity
– As earning power’s increase, demand for
a protein-rich diet follows
– More protein has a significant impact on
grain and oilseed demand
• Our role
– Increase crop yields
– Agronomists estimate that crop nutrients
directly account for 40 to 60 percent of
crop yields
– Optimum use of crop nutrients is essential
to growing the food the world needs
Mosaic in Saskatchewan
• Potash operations at three
Saskatchewan mine sites
– Belle Plaine, Colonsay, Esterhazy
• Over 2,300 employees across the
province
• Mosaic invests in growing the
communities where we operate
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STARS air ambulance
Children’s Hospital of Saskatchewan
St. Anthony’s Hospital Foundation (Esterhazy)
St. Paul’s Hospital Foundation (Saskatoon)
Mosaic Heart Centre (Regina)
Brownfield Expansion
Brownfield expansion projects are in various
stages of progress at each Mosaic potash
site in Saskatchewan.
• Capital costs are a fraction of those
associated with a greenfield project.
• Incremental tonnage can be added to an
existing mine and brought to market within
a short period of time.
• Leveraging existing mine assets to drive a
lower cost per tonne.
• Risks such as ore quality are already
known.
Esterhazy – History and Growth
Mosaic celebrated the 50th anniversary of
production at Esterhazy with grand opening of
Stage 1 expansion on September 28, 2012.
The first potash production at
Esterhazy was June 8, 1962.
Esterhazy Stage 1 Expansion
• Completed and in operation
• Capacity of .8 million tonnes per year
• Approximate investment is $.6 billion
• Includes:
– Expanded mine and mill capacity
– Upgraded hoisting capability
– Additional product storage
Esterhazy Stage 2 Expansion – K3
• Expected for completion in 2017
• Capacity of .9 million tonnes per year
• Projected investment is $1.5 billion
• It will operate as a satellite mine for K2
• Site development includes:
– Two shafts
– Mine development
– Surface facilities
Esterhazy Stage 2 Expansion – K3
Esterhazy then and now…
• Ground freezing process was developed to allow construction
through the Blairmore formation.
• This technology is currently used at the Esterhazy K3 shaft project.
Esterhazy Stage 2 Expansion – K3
• The K3 production headframe will be
one the tallest structures in
Saskatchewan.
• Outfitting the structure will take about
two years.
A Culture of Safety
• The relentless pursuit of an injury-free workplace.
• 25% improvement in our recordable injury frequency
rate.
• 33% improvement of our lost time incident
frequency rate.
• Thousands of employees and contractors are
trained monthly in environmental health and safety
• Our culture of safety is encompassed in every
aspect of the business.
Tomorrow’s Mosaic
• Continue growing value in both business units
• Further develop global footprint
• No other company has the ability to deliver two critical crop
nutrients on such a massive scale to the global market
• As we work to shape the Mosaic of tomorrow, the
leadership position we hold today is a superb place to start
Video: Connectivity at K3
For more information about Mosaic visit
www.mosaicco.com
We help the world grow the food it needs.