ESTERHAZY, Saskatchewan--(BUSINESS WIRE)--Mosaic has reached a major milestone in the development of our multi-year mine project at Esterhazy K3. As of December 18, 2018, we commissioned the production hoist and sent the first bucket of potash on the overland conveyor to the Esterhazy K2 mill. The commissioning of the K3 production hoist takes us one step closer to mitigating Esterhazy’s brine inflow costs and risk. The hoist will move 60-ton skips, capable of lifting 10 million tons of potash per year.
K3 demonstrates Mosaic’s commitment to the long-term sustainability of Mosaic’s operations and our vision for the future of our potash operations in Saskatchewan. Upon completion of K3, Mosaic’s Esterhazy operation is expected to be the largest, most competitive underground potash mine in the world.
“The new K3 mine is part of a long-term vision for Mosaic that will sustain our potash operations for many years into the future,” said President and CEO Joc O’Rourke. “K3 will allow us to mine our significant ore reserves in the Esterhazy area, while being much more efficient.”
We believe the Esterhazy K3 project is the world’s only new potash mine that remains on budget and on time. It is expected to reach full operational capacity by 2024.
Under current market conditions the project is expected to generate an ROIC well in excess of our cost of capital, while significantly lowering risks and costs by eliminating brine management.
About The Mosaic Company
The Mosaic Company is one of the world's leading producers and marketers of concentrated phosphate and potash crop nutrients. Mosaic is a single source provider of phosphate and potash fertilizers and feed ingredients for the global agriculture industry. To learn more about K3, visit www.mosaicco.com/K3.
This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, statements about the anticipated benefits of commissioning the K3 production hoist or strategic plans regarding mitigating brine inflow management costs and other statements about anticipated future financial, production and operating performance. Such statements are based upon the current beliefs and expectations of The Mosaic Company’s management and are subject to significant risks and uncertainties. These risks and uncertainties include, but are not limited to: difficulties with realization of the benefits and efficiencies of the K3 operation; actual costs of various items differing from management’s current estimates, price and demand volatility for our products, other changes in market conditions, accidents and disruptions involving the Esterhazy operations, including potential mine fires, floods, explosions, seismic events, sinkholes or releases of hazardous or volatile chemicals; changes in foreign currency and exchange rates; international trade risks and other risks associated with Mosaic's international operations, changes in government policy, changes in environmental and other governmental regulation, Canadian resources taxes and royalties, as well as other risks and uncertainties reported from time to time in The Mosaic Company’s reports filed with the Securities and Exchange Commission. Actual results may differ from those set forth in the forward-looking statements.