Canpotex signs lease agreement with Prince Rupert Port Authority

Canpotex announced this week it had signed a lease agreement with the Prince Rupert Port Authority for the site.

Canpotex is continuing to move forward with its plans for a potash export terminal on Ridley Island, announcing this week it had signed a lease agreement with the Prince Rupert Port Authority for the site.

“The execution of the lease agreement is an interim step in the development of Canpotex’s proposed greenfield potash terminal on Ridley Island,” reads a company statement, noting Canpotex has already invested approximately $50 million into the project, a figure which includes a $15 contribution to the Ridley Island Road, Rail and Utility Corridor.

“Canpotex will make a final investment decision to proceed based on a variety of commercial factors, including construction costs and offshore potash market projections. No date has been set for making this decision. If a decision is made to proceed, the Potash Export Terminal investment would be approximately CDN $775 million, and would provide Canpotex with three separate gateways and rail corridors to the west coast.”

Confirming the agreement was signed recently, Prince Rupert Port Authority manager of corporate communications Michael Gurney said this is a significant step in the development.

“This means all of the commercial agreements between the Prince Rupert Port Authority and Canpotex have been complete … and signifies the environmental assessment is complete, the certificates have been received and the decision to proceed now rests with Canpotex and its shareholders,” he said.

“We are very pleased to see the project proceed to this point.”

Plans for the terminal call for a 180,000 tonne potash storage building with associated conveyor and dust collection systems and a marine wharf with access trestle and causeway capable of receiving vessels of up to 180,000 dead weight tonnes.