Potash Corporation of Saskatchewan

Allan Mine
Allan, SK
Kieran Lynch
Huaizhe Li
Chinguun Jericho
Menglong Xu
Adolfo Lopez
MINE 501B - Feb 2016
MINE 501B

1.
2.
3.
4.
5.
6.
7.
8.
9.
10.

Allan Mine Location

Potash Corp
Potash
Geology
Mining Method
Mineral Processing
Financials
Environmental/Social
Job Opportunities
Summary

Maps obtained from Google.ca

www.saskatoon.climatemps.com

Potash

www.vulcanminerals.ca

lushburyfertilizer.com

alliedgroup.pk

www.indiamart.com

www.petandgarden.com.au

Nutrients and Potassium

With over 200,000 new population

being born each day, one of the real
challenges is making more food

Soil is one of the worlds most

precious natural resources; it needs
caring and feeding

In humans, Potassium is critical for

circulation of fluids; for plants,
Potassium from potash is one of the
three main crop nutrients

Source: PotashCorp

Potassium acts as a regulator for essential processes of plant growth:

- Enzyme activation
- Photosynthesis
- Water use
- Starch formation
- Protein synthesis

POTASH

Common name for salts that contain potassium (K

from latin Kalium)
Most common form is potassium chloride (KCl)
MiddleDutch word potaschen, referring to the old
method of making potassium carbonate from wood
ash; used for soap bleach and glass, and later as
fertilizer.
All commercial potash deposits come from ancient
sea deposits buried deep, and salt water brines
Potash" became the term widely applied to
naturally occurring potassium salts and the
commercial product derived from them.
Typically extracted by conventional shaft mining
In 1943, potash was discovered in Saskatchewan,
Canada, in the process of drilling for oil. In 1958, the
Potash Company of America became the first potash
producer in Canada with the commissioning of an
underground potash mine at Patience Lake

www.karnalyte.com
Source: The World Potash Industry: Past, Present and Future" (PDF). New Orleans, LA: 50th Anniversary
Meeting The Fertilizer Industry Round Table. 2000.

Source: http://resourcescommittee.house.gov/subcommittees/emr/usgsweb/photogallery

Potash fertilizers:
1. Murite of Potash (MOP)
2. Sulfate of Potsh (SOP)
3. Potassium Magnesium Sulfaate
4. Potassium Nitrate

Source: PotashCorp

A significant portion of the reserves are found in the Prairie Evaporite Deposit in SK

the vast deposit lies diagonally, gently sloping southerly from a 1,000 metre depth from
Saskatoon to 3,000 metres depth in Northeastern Montana and North Dakota

Source: PotashCorp

Canada possesses approx. 46% of the world's Potash

reserves

Canada produces 32% of the minerals global

production

PotashCorp is the world's largest fertilizer company

by capacity, representing 20% of global capacity

The PCS Allan mine has been in operation since 1968

and is one of the 6 potash mines of PotashCorp

PotashCorp, Potash Operations

Lanigan, SK
Rocanville, SK
Allan, SK
Cory, SK
Patience Lake, SK
New Brunswick, NB

Products
Raw potash is processed at the on-site mill to determine the grade and usage:
-Producing granular and standard potash to be used in fertilizer
-Producing Industrial grade potash for the manufacture of industrial products

Nameplate
Capacity

4.0

Operational
Capability
2015
3.2

Values: Million Tonnes (KCL)

Operational
Capability
2014
2.5

Production
2014

2013

2012

2.47

1.18

1.17

Source: PotashCorp.com

Mine Flowsheet
Mine Type
Mine Depth (m)

Conventional Underground
1040

Mine Life (years)

Mining Method
Mineral Processing

144 ( 1968-2112 )
Long room and Pillar
Froth Flotation

Operation Capability in 2012

Operation Capability in 2014

1.6 Mt/year
2.7 Mt/year

Conventional Underground
Top size:
1,500 mm

Jaw Crusher
Top size:
150 ~ 200 mm

Mining Method

Mining Equipment
Allan Potash mine is
equipped with 6 tworotor continuous boring
machines, which can
produce more than 600
tonnes per hour.

Mineral Processing
Dry crushing

Saturated brine

Flocculant

Total Recovery: 87%

1. Chemical composition
Fertilizer grade potash: 60%
2. Size distribution
The coarser, the better

Mineral Processing - Flotation

Saturated brine
Denver DR-type flotation cells
Amines are the most used collector
Blinders are used to reduced
collector consumption

4 to 5 % moisture
14 mesh
hydrocyclone

Financial
Overview 2015
Challenging Conditions
Currency weakness | Cautious buying
patterns

Year

Gross
Margins
(Yearly)

Average
Realized
Potash Price

2014

$1.4bn

$284

2015
$1.3bn
Potash Market Outlook

$238

2016 Global shipments expected 59-62 million tonnes In line

with the approx. 60 million tonnes shipped in 2015
Significant nutrient requirements of North American markets will
support the growth of potash shipments in 2016

Environmental
Air
Water
Land
Social value

Air quality:
Dust;
Exhaust gases such as carbon dioxide
(CO2), carbon monoxide (CO), nitrogen
oxides (NOx), and sulfur oxides (SOx);
Volatile organic compounds (VOC's) from
fueling and workshop activities;
Methane released from some geological
strata.

Land surface and sub-surface:

The extraction of ore;
The deposition of overburden;
The disposal of beneficiation wastes;
The subsidence of the surface.

Water quality:
The erosion of fines from disturbed
ground;
The release or leakage of brines;
The weathering of overburden
contaminants, which may then be
leached;
The release of slurry brines and
contaminants into process water.

Social goods and intangible values:

Modification of the landscape;
Noise and vibration from activities such
as blasting and the operation of
equipment;
Changes in wildlife habitat.

SHE (Safety, Health and Environment) Manual

Meet federal, state/provincial and local regulatory requirements
Use natural resources and energy efficiently
Minimize waste, air emissions, water discharges and unwanted
byproducts
Increase recycling
Preserve habitats and promote natural biodiversity in areas affected
by operations

Carbon Emissions
Objectives of Carbon Emissions
Comply with current and future regulatory requirements;
Protecting the companys reputation ;
Identifying revenue-generating opportunities in the emerging
regulatory framework.
Elements of Carbon Emissions Strategy
Carbon Management
Greenhouse Gas (GHG) Reduction
Task Force Participation

Biodiversity

Engaging in the mining permit process

Mitigating wetlands impact
Monitoring surface and groundwater emissions at all Canadian sites
Requiring farm lease agreements
Recommending grassland restoration when it is sensible
Supporting partnerships with organizations which promote
biodiversity
Participating in the Province of Saskatchewans Representative Area
Network

Awards in Environmental Aspect

2014

Ottawa River Coalition Outstanding Watershed Partner PotashCorp Lima

Ohio Chemistry Technology Council Award for Excellence in Environmental, Health, Safety
and Security Performance PotashCorp Lima

2013

Ohio Chemistry Technology Council Award for Excellence in Environmental, Health, Safety
and Security Performance PotashCorp Lima
Ottawa River Coalition Outstanding Watershed Partner PotashCorp Lima

2012

Environmental Educators of North Carolina Outstanding Partnership Award PotashCorp

Aurora
Ohio Chemistry Technology Council Award for Excellence in Environmental, Health, Safety
and Security Performance PotashCorp Lima

Awards in Environmental Aspect

2011

Norfolk Southern Thoroughbred Award PotashCorp Aurora; White Springs; Augusta;

Lima
Union Pacific Pinnacle Award PotashCorp White Springs; Weeping Water
Burlington Northern Santa Fe Product Stewardship Award PotashCorp Joplin
Burlington Northern Santa Fe Railroad Product Stewardship Award PotashCorp Joplin
Norfolk Southern Corporation Thoroughbred Chemical Safety Award PotashCorp White
Springs
Union Pacific Chemical Transportation Safety Pinnacle Award PotashCorp White Springs
Burlington Northern Santa Fe Railway Product Stewardship Award PotashCorp White
Springs
International Fertilizer Industry Association (IFA) Green Leaf Award first runner up for
excellence in Safety, Health and Environment PCS Nitrogen - Trinidad

2010

Union Pacific Pinnacle Award PotashCorp Weeping Waters;White Springs; PCS Sales
Burlington Northern Santa Fe Transportation Safety Award PotashCorp Joplin

Social Responsibility
Donations to food bank of Saskatoon
Potashcorp Playland Park
Several scholarship programs

From: http://globalnews.ca/news

From: http://saskatoon.ctvnews.ca/

Aboriginal development
Cooperation with Saskatoon Tribal Council (STC)
Indigenous Peoples Industry Partnership Program

From: http://saskatoon.ctvnews.ca/

From: http://nationtalk.ca/

Job Opportunities

Engineer-in-training program
Co-op and internships
Job posting on third party
Online application
Job Alert Subscription

Preference on hiring
Local work force
Former holders of internships and co-op
Driving permit in Canada and USA

Engineer-in-training program
Tailored for newly graduates
Work at different mines and departments
Development of well-rounded engineers

CHALLENGES

http://icpotash.com/

Source: http://business.financialpost.com/investing/potash-uralkali-prices Accessed on Jan 18, 2016

PCS Allan Mine, in a nutshell

PotashCorp, SK (Saskatoon)
Mine Life through 2112
Financial Results
Ancient sea deposits about 1100 m deep
/Conventional shaft mining by room and pillar
Crushing, flotation, drying and compaction
Favorable chances for Coop position
Connected with the community massive
reserves with over 100 years to come