Potash of Saskatchewan : Rocanville Using New Method to Prove Increased Productive Capacity for Canpotex

Rocanville will be the first Saskatchewan mine to use a new methodology to measure post-expansion productive capacity to establish its Canpotex sales allocation, following a change approved by Canpotex's board of directors. The new process - which is anticipated to reduce costs and improve efficiencies - is expected to be applied in the first half of 2017. The corresponding change in sales entitlement is anticipated to take effect July 1, 2017.

Until now, Canpotex producers, including PotashCorp, have demonstrated increases in productive capacity by maximizing production for 90 operating days, which is known as a proving run. The new methodology will rely on an audit by an independent engineering firm and application of approved protocols to calculate productive capacity. The protocols consider the installed capacity of new and existing mine, hoist and mill equipment and infrastructure, and include a 10- to 14-day production run to validate audit results.

If the company believes the results of the new method underrepresent its productive capacity, it may still use the 90-day proving run procedure.