Handout - K+S Aktiengesellschaft

Legacy Project
New, State-of-the-art Potash Capacities
Growth
Production Costs
Capacity and
Mine Life
Diversification
Specialisation
Flexibility /
Expansion Potential
• Adding substantial new capacities to the Potash and Magnesium Products
business segment in a relatively short timeframe to be able to participate in the
growth of the world potash market
• Improvement and flexibilisation of average cash costs of production in the Potash
and Magnesium Products business segment
• Substantial addition of annual capacity by up to 4 million tonnes in the long run
• Substantial extension of average mine life
• K+S will be the potash producer with the widest product portfolio as well as one of
the most diversified production networks and regional mix; share of sales volumes in
the growth markets South America and Asia will increase
• Continuation of the specialisation strategy by offering high-quality industrial
products from Canada
• Good scalability of capacity utilisation according to market development
• Improved flexibility due to higher share of variable costs
• Further expansion potential beyond the Legacy Project
With a potash price of between USD 400 and 450/tonne MOP gran. including freight, the project already
achieves a ROCE of 12% and an attractive premium on our cost of capital. The Legacy Project is thus
one of the world’s economically most attractive greenfield projects
January 2013 K+S Group 60