the k+s legacy project · the potash one office in vancouver has been closed, the new company...

October 2012 K+S Group

Experience growth.

The K+S Legacy Project

Jens Werdelmann (K+S Potash Canada GP, Saskatoon, Canada)

20th Anniversary of K-UTEC

October 5, 2012



Content

A. Legacy Project - Overview

C. Recent Achievements

D. Geological Knowledge

E. Outlook

B. Solution Mining Approach

F. Conclusion

1


German Potash Mining History in Canada

1968 – 1977 (JV EMC-MDPA/Wintershall/Salzdetfurth):

Alwinsal Potash Mine, Lanigan, SK / Alwinsal Potash of Canada Ltd.

1980 – 1998 (JV Denison Mines/Potacan-EMC&K+S):

Clover Hill Potash Mine, Sussex, NB / Denison-Potacan Potash Company (DPPC) /

Potacan Mining Corporation (PMC)

2



Presence of K+S in Canada today

3


October 2012 K+S Group 4 4

Legacy – A Deposit with a long History



Milestones Aquisition

The transaction of the formal takeover of Potash One was completed on 24 March

2011.

The Potash One office in Vancouver has been closed, the new company operates

now under the name of K+S Potash Canada GP and the company’s representation

in Saskatoon and at the construction site has been widened since.

The conversion of the exploration permit KP 289 into a mine lease took place in

January 2011.

The project feasibility study review was completed in fall 2011 and the capital

expenditure of 3.25 billion CAD was approved.

Initial works at the site have been completed including water supply, electricity and

road development.

Cavern wells and disposal drill holes have been completed in spring 2012.



Ramp-Up Curve



Content




E. Outlook


F. Conclusion

7



K+ S Solution Mining Operations

8

Europe

Bernburg, Germany

Frisia Zout, Harlingen, The Netherlands

North America

Silver Springs, NY, USA

Rittman, OH, USA

Manistee, MI, USA

Hutchinson, KS, USA

Glendale, AZ, USA

Grand Saline, TX, USA

Lindbergh, AB, Canada

Windsor, ON, Canada



Primary Mining

Hot Water Injection

9

Product from Vacuum Cooling

Crystallization



Secondary Mining

Injection of brine which

is saturated in NaCl. 10

Product from a Cooling Pond



K+S Legacy Solution Mining Approach

11

1 Pad = 9 Caverns = 18 Wells



Process Block Diagram

12



Content




E. Outlook


F. Conclusion

13



Water Supply Completion

14

Legacy Site Pipeline to the

Site

Pumphouse

July 2012



Initial Construction Works completed

15

Drill Rig

(Disposal Well)

Office

Area

Water Pond

Power

Sub-

Station

Wellfield

(eastbound)


Temporary

Cavern

Operation

Facilities


Disposal Wells completed and proofed

16

Disposal Depth

~ 2.100 m

350 m


Potash Seams

~ 1.500 m


2012 Cavern Operation prepared

17

Temporary Cavern

Operation Facilities

Cavern Wells

Pipeline to the

Site



2012 Cavern Operation Tasks & associated Work

18

Full scale test, scheduled to begin

in 2012 and last for about a year

Facilitate operational processes and

results accordant to the models prepared and

the training of wellfield operators

Based on the recent drill cores, results

from dissolution tests have fully

confirmed the expectations



Investigative Program implemented

● Sampling

● Analysis

● Rockmechanics

● Dissolution Tests

● 3D-Modeling (Mining& Geology)

● Process Simulation

Tests Performance

Prediction Model

Mining &

Production

Planning

19



Safety, Health and Environment

Safety Health and Environment Management System “SHEMS”,

Processes on the Licensing Procedure and further

KSPC Management Systems have been defined, implemented and adjusted with the

partnering Companies.

At present, KSPC has 61 Employees in Saskatoon and

39 Employees at the Legacy Minesite.

20

Security and Medical Service at the Site



Content




E. Outlook


F. Conclusion

21



Core Retrieval and Core Investigations

22



Wireline Logging

23



Detailed Stratigraphy by Mud/Core/Wireline Logging

24

Salt Stringer

Cretaceous

Jurassic

Triassic

Mississippian

Devonian

Stratigraphy

Prairie

Formation



Results from Drill Hole Investigations

25

Legend

Clayey Halite

Clayey Sylvite

Claystone

Clay enriched Zone

Sylvite, low K Content

Halite

Halite with Sylvite

Sylvite, high K Content

10 m

Upper Mining Horizon

18,8 m - 31% KCl

Middle Mining Horizon

8,5 m - 29,5% KCl

Lower Mining Horizon

10,3 m - 21,6% KCl

%K2O GR (API)

0 50 800 0

Results have fully confirmed the expectations



Seismic Modeling

26

Second Red Bed to Shell Lake Evaporite Isopach Map Illustrating Possible Collapse Features as

Identified by 3D Seismic Surveys, Exploration Drill Holes integrated

South-15

South-16

South-14

South-3

South-2 South-1

Dis

ley

South-1

Exploration Drill Hole



Reserve/Resource Modeling and Mine Plan

27

South-15 South-16

South-14 South-2 South-1

South-3

No KCl



Content




E. Outlook


F. Conclusion

28



Potash One and the Legacy Project

Located in the Heart of Saskatchewan’s Potash-Rich Basin

Regina

Two additional potash permit areas in the Esterhazy potash region

Two more potash exploration licences close to Esterhazy

in mln. t KCl % KCl % K2O

Reserves (Proven and Probable Reserves) Legacy Project area 160 29 18

Resources (Inferred and Indicated Resources) Legacy Project area + KLSA 009 981 27 17

Reserves and Resources

The reserves figures were determined in accordance with the requirements of the Canadian standard Nl 43-101 of the “Canadian Securities Regulators”.



Reserve/Resource Modeling and Mine Plan

30

The NI 43-101 report for Potash One originally reported “proven

and probable reserves” of about 136 million tonnes of KCl

product.

As KSPC has acquired additional mineral rights within the

Legacy lease area, reserves of 160 million tonnes of KCl product

are available for a production lifetime of more than 50 years at

2.86 million tonnes of KCl product per year.

Remaining „inferred resources“ related to the current mining

lease amount to 982 million tonnes of KCl product.



Content




E. Outlook


31

F. Conclusion



Conclusion

32

The Legacy Project with its new potash solution mine in Saskatchewan

perfectly fits in the strategy of the Potash and Magnesium Products

business segment:

Will add new capacities and an extension of the average lifetime

of our potash plants.

Will provide a good scalability of capacity utilization and improve

the flexibility due to a higher share of variable costs.

Will boost our international competitiveness in combination with

our German potash mines and thus

contributing to K+S growth within the global potash market and

further widening the product portfolio and production network.



Experience growth.

Investor Relations:

K+S Aktiengesellschaft

Bertha-von-Suttner-Strasse 7

34131 Kassel

Germany

phone: +49 (0)561 / 9301-0

E-Mail: [email protected]

Public Relations:

K+S Aktiengesellschaft Address: Bertha-von-Suttner Str. 7

34131 Kassel

Germany

Phone: +49 561 9301 1262

E-Mail: [email protected]

Internet: www.k-plus-s.com

K+S Potash Canada GP 300-211 4th Ave S

Saskatoon SK S7K 1N1

Canada

Phone: +1 306 986 5251

Fax: +1 306 986 5252

Internet: www.ks-potashcanada.com

Thanks!

mailot:[email protected]










the k+s legacy project · the potash one office in vancouver has been closed, the new company...

Documents