K+S announces expansion of Bethune mine

WATCH: A major expansion in potash productions has been announced for the K+S mine near Bethune, Sask. Mantyka has the details.

A major expansion in potash production was kicked off Monday at the K+S Bethune Mine. The company plans to spend nearly $3 billion over the next two decades to double the output of the facility.

A sod turning event was held at the K+S potash mine as construction crews worked in the background. It’s the first phase of a major expansion.

“We’re here in the province. We are committed to growing in the province and we’re really putting that into action today,” K+S Potash Canada president Sam Farris told reporters.

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The first phase expansion will increase production output by about 35 per cent to 2.2 million tonnes per year. K+S, which is headquartered in Germany, is confident in the future of the potash market.

“We are seeing a strong potash market. So, demand is slightly higher than production, which is always good. So, prices are stable,” COO Carin-Martina Troltzsch explained.

No dollar value was provided for the expansion – but the company will spend close to $3 billion over two decades. A total of 500 construction workers will be involved in this first phase of work.

Once completed, 50 permanent jobs will be created at the facility.

For the government, increased production will mean more royalties.

“Yes, it won’t be into production for a while yet, but that means once it is the amount of royalties that will contribute to the economic progress of Saskatchewan and the people,” Minister of Energy and Resources Colleen Young explained.

The announcement is part of a 20-year expansion plan for the K+S facility. When completed, production will be about double its current level.