NB 938
July 20, 2007
FREDERICTON (CNB) - A new $1.7-billion, 2-million-tonne mine and expanded milling operation in the Sussex area will create 140 full-time positions upon completion, and preserve the 330 jobs at the current Sussex mine. Premier Shawn Graham joined Garth Moore, president of Potash Corp. of Saskatchewan (PCS), as he announced the company's decision to build the new mine.
"Today's announcement will bring more jobs and more opportunities to our province, and sends a strong message that we are competitive, we are open for business, and we are on the road to self-sufficiency," Graham said. "Economic development and creating new opportunities are critical to achieving our goal of self-sufficiency, and today I am pleased that we are seeing results for the New Brunswick people and our economy."
The construction phase is expected to last four years and to generate the equivalent of 2,500 person-years of employment. The new mine will have the capacity to produce 2 million tonnes of potash annually. The existing mine, which produces about 800,000 tones per year, will remain operational during the construction phase.
"We are especially proud that our new mine will help move New Brunswick to the forefront of global potash production, making this region one of the largest suppliers of a nutrient that is essential to food production around the world," Moore said. "The provincial government has been very co-operative in helping us bring this project from the drawing board to reality."
"This is also great news for the entire region, because the potash terminal operations contribute about 50 per cent of the revenue for the Port of Saint John," Graham said. "We worked hard to develop a royalty incentive to encourage PCS to invest in New Brunswick, because the company had other opportunities elsewhere and we felt we had to create a positive investment climate to ensure our province remained competitive and continued to attract major projects."
In order to gain a competitive edge and encourage this investment, government approved a number of steps in support of the project, including: a royalty holiday for all potash and salt produced from the new shafts for a period of three years; a royalty reduction from 6.25 per cent to 5.25 per cent for all potash production for a period of five years after the royalty holiday; and a royalty reduction from 3.5 per cent to 2.5 per cent for all salt production for a period of five years after the royalty holiday.
"The government agreed to reduce the royalties by $35 million over the next twenty years as an incentive to encourage the company to invest in New Brunswick," Byrne said. "The province will still collect over $330 million in royalties, and see the creation and maintenance of almost 500 good-paying jobs."
Byrne attended on behalf of Natural Resources Minister Donald Arseneault.
07/07/20
MEDIA CONTACTS: Communications, Office of the Premier, 506-453-2144; Wade Wilson, Department of Natural Resources, 506-453-2614.
07/07/20