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Phase 2 Expansion Study: Product Transfer, Storage & Reclaim Systems

Client: Mosaic Potash, Belle Plaine, Saskatchewan

Mosaic is the world's leading producer of potash and phosphate crop nutrients. They record annual revenues exceeding $5.8 billion (FY 2007), and employ approximately 7,000 people worldwide.

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Mosaic has three Canadian potash facilities containing four mines, all located in the southern half of the Province of Saskatchewan, including its solution mine at Belle Plaine. Its Canadian operations produce 15 different potash products, including industrial grades, many through processes.

Mosaic Company recently announced plans to increase its Saskatchewan potash production by five million tonnes over the next twelve years. This will require expansions totaling over $3 billion US in the three operations at Belle Plaine, Esterhazy and Colonsay. These projects will require 4,500 person years of employment for the construction phase and will create an estimated 700 permanent jobs upon completion.

Expansion at Mosaic's Belle Plaine operation will take several phases, with the final phase scheduled for completion by the end of 2017. ENGCOMP has been retained by Mosaic to provide services for the completion of the Phase 2 expansion study. Mosaic is completing the engineering estimates to complete the expansion work required inside their existing mill operations. ENGCOMP was requested to provide services for determining a feasibility level capital cost estimate to expand the product storage, transfer, reclaim, and loadout capabilities of the Belle Plaine operation to meet their upcoming increase in production.

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Background

1. Expansion at Mosaic's Belle Plaine operation will take several phases, with the final phase scheduled for completion by the end of 2017.
2. Phase 2 required work within many areas of the operation including the mill.
3. ENGCOMP provided basic engineering and a feasibility capital cost estimate to expand the product storage, transfer, reclaim and portions of the Phase 2 expansion.

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The Project

1. The project location: Mosaic Belle Plaine potash mine in Belle Plaine Saskatchewan.
2. Objective: Plan for an expansion to the product storage and transfer/reclaim capabilities for the refinery and loadout.

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Design Criteria

1. New Product transfer system from the plant to new warehouse, including the addition of a new transfer house and transfer tower
2. New 60,000 tonne product storage warehouse, including a new tripper and conveyor system
3. New product reclaim system from warehouse to plant
4. New product transfer system from plant to loadout
5. Structural review and modifications for reinforcing the structural steel at the loadout building in order to suit the new gallery addition
6. Site access and drainage
7. Capital cost estimate covering the direct field costs of executing the project as well as the indirect costs associated with project management, design, procurement, construction and commissioning
8. Identify the potential cost savings of removing specific project components for future cost planning
9. Entire project modeled in 3D using Autodesk Inventor

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Capital Cost

1. Estimated at $32,740,000

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Schedule

1. Project Kick-off: June 5, 2007
2. Basic engineering and options analysis completed in September 2007
3. Capital Cost Estimate issued to the Client in October 2007

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Successes

1. Completed on schedule
2. ENGCOMP provided a unique cost and time saving solution for re-building an existing gallery bent without temporary construction supports.

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