Mosaic commits long-term to Esterhazy

A Chamber of Commerce breakfast meeting May 30 provided local business people with some insight into the past and future of the world's largest combined phosphate and potash supplier.

It's difficult to go anywhere in the Province of Saskatchewan without seeing the familiar logo of Mosaic. It is a Fortune 500 company with more than 8,000 employees operating in eight countries supplying customers in more than 40 countries. Last year its sales surpassed $11 billion.

In terms of potash production, Mosaic is slightly behind PotashCorp and the Belarus mining giant Belaruskali at just under four million tonnes annually. The company far outpaces the competition, however, in phosphate production (nearly four million tonnes) and combined production.

Locally, the company has a massive impact employing more than 800 people in Esterhazy and pouring millions into community projects such as the STARS air ambulance and Esterhazy's St. Anthony's Hospital.

On Thursday, Bruce Bodine, general manager of Mosaic Canada at Esterhazy, told Chamber members that impact will continue for the foreseeable future. He said the company has reserves in the area that could last as long as 100 years.

He talked in general about the growing demand for the Esterhazy mines' product, particularly in Asian markets, and specifically about the progress of the K2 and K3 mines at Esterhazy.

The K2 expansion opened in 2012 with a total investment of $600 million and is currently on track to produce 800,000 tonnes per year.

Bodine said he expects the K3 expansion will go on line in 2017 with a price tag of $1.5 billion. The massive headframe, which will house two mine shafts is currently under construction and, when completed will be the tallest structure between Winnipeg and Calgary.

As impressive as the headframe will be, however, far more important is the commitment it represents to the community of Esterhazy, Bodine said. Once the mine is in goes into production, he estimated it will provide more than 200 more permanent full-time jobs.

Bodine's appearance at the Chamber breakfast was scheduled to coincide with Saskatchewan Mining Week.