Canpotex abandons proposed potash terminal in Prince Rupert

Canpotex has pulled the plug on its proposed $775 million potash export terminal in Prince Rupert.

Canpotex, a partnership of three potash mining firms Agrium, Mosaic and PotashCorp (Potash Corporation of Saskatchewan), made the announcement today that the long-awaited project for Prince Rupert has been shelved.

The board of directors made the decision based on economic and commercial considerations. The company has highly efficient export terminals in Vancouver, Saint John and Portland, and Canpotex determined it has sufficient port access and terminal capacity options to meet its needs, stated thepress release.

“This decision was made after careful deliberation of Canpotex’s current and anticipated terminal capacity needs, and the options we have to meet those needs” said Ken Seitz, Canpotex’s president and chief executive officer.

“We sincerely appreciate the relationships developed over the years this project was considered. We thank all project stakeholders and community members for their constructive interactions with Canpotex and interest in the project.”

Don Krusel, president and CEO of the Port of Prince Rupert, called the announcement a clear example of what may happen when opportunities are not seized when they present themselves.

"Today's announcement illustrates the ongoing challenge we face in working with proponents and developers from various industries. They invest millions of dollars and years of effort in an attempt to build infrastructure that will enable trade. At the same time, commodity markets, exchange rates, environmental activism and political pressures are in a continuous state of change. Canpotex's decision demonstrates that economic development opportunities have a limited lifespan. We need to improve our collective efforts to capitalize on these opportunities before economic windows close," Krusel said.

"It is important to acknowledge that Canpotex's long commitment to this project resulted in significant legacies to port infrastructure, including a contribution to shared rail, road and utility systems. The term of Canpotex's relationship with the Port of Prince Rupert demarcates a period of substantial growth of our project portfolio in terms of scale, sophistication and cargo diversity."