German potash maker delays Canadian plant opening
Germany's K+S AG (ETR: SDF) announced this week it will delay its new potash plant in Saskatchewan by approximately six months due to costs running high.
The Legacy Project budget was increased its capital expenditure budget to about $4 billion from the original estimate of $3.25 billion. As a result of the increased construction cost, the company will start operations in mid-2016 rather than at the end of 2015.
K+S said the new plant will distribute to emerging regions in Asia as well as South and North America.
The company also said it expects potash volumes to be steady this year following its second-best year ever in 2012.
It forecasts the new mine to produce 2 million tonnes by the end of 2017.
Additionally, it plans to add 2.86 million tonnes of potash annually from the new mine by 2023.
Image courtesy K+S