PotashCorp well-positioned in competitive environment
Following a few years characterized by weaker demand and pricing pressure, things are feeling better in the potash business.
While the phosphate and nitrogen sectors remain challenging, global potash prices have been improving for five consecutive quarters as agronomic need and affordability have led to stronger and more consistent demand in all major markets.
In its most recent quarterly report, PotashCorp states this demand is expected to continue through the end of 2017 and into 2018. The company expects total global shipments of potash to range from 62-65 million tonnes in 2017, well above the 60 million tonnes shipped last year and at or slightly above the historical record of 63 million tonnes in 2014.
While the demand picture is encouraging, “the global landscape for potash remains highly competitive and the focus at PotashCorp has been ensuring the company is well positioned for success within that environment,” said Randy Burton, Public Relations and Communications Director at PotashCorp. “Optimization and efficiency of our mining operations has been a top priority in recent years, which has resulted in a significant reduction of our overall cost of production.”
As part of PotashCorp’s optimization efforts, the company completed a $3 billion expansion of its mine at Rocanville in 2016. On Oct. 12, 2017, it officially celebrated the completion of the project. According to PotashCorp, it’s now the world’s largest potash mine. As part of the project, the operation achieved a new nameplate capacity of 6.5 million tonnes, more than double its pre-expansion capacity. The expansion also included a new mine shaft, mill, 500,000-tonne storage facility, rail and rail loadout equipment and conversion of the existing service shaft. The workforce at the site doubled to more than 750.
“Because of its scale, consistent ore grade and stable ground conditions, Rocanville is PotashCorp’s lowest-cost operation and one of the lowest cost mines in the world,” Burton said. “Focusing production at this facility, and lowering costs at its other Saskatchewan mines, has helped the company reduce its overall cost profile and compete more effectively on a global stage.”
PotashCorp continues to embrace innovative technologies to help it deal with the challenges associated with potash mining. One technology used by the company is RFID (radio frequency identification) chips located on underground vehicles and miners’ cap lamps. Burton explained that the technology’s most important function is that it enhances safety by tracking personnel and ensuring they are accounted for in the event they have to take refuge during an emergency. It also enhances efficiency by locating necessary equipment at any point in time.
Burton added that another useful technology is underground cameras pointed at critical infrastructure such as conveyors. These cameras can be monitored remotely from computer tablets as well as the control room, allowing managers to ensure consistent, safe operations at critical locations underground.
In all of the work it does, safety remains a priority for PotashCorp. Its Ground Penetrating Radar systems mounted on mining machines help to give workers important information on potential hazards, including loose or unstable areas in the roof of the mine.
“Having advance knowledge of potential problems allows crews to take preventive action to ensure production never occurs at the expense of safety,” Burton said.