Our Canadian potash assets are estimated to contain more than a century's worth of reserves, which means that we can continue to provide this critical crop nutrient to meet demand for generations to come. Moreover, we can expand our production with less capital, time and risk than new entrants into the industry.

Today, Mosaic is one of the world’s top producers of potash, with an estimated 14% of global market share. Our potash assets include five mines, one of which is the largest potash mine in the world in Saskatchewan, Canada. Combined, these mines have an annual production capacity of approximately 10.4 million tonnes. In addition, 1.3 million tonnes of annual capacity will revert to Mosaic in the next few years when an existing tolling agreement at our Esterhazy mine expires.

Even before this cycle of intense demand, potash was an exceptionally sound business with excellent fundamentals. Only 12 countries in the world produce potash. As such their exports meet 60% of world demand, including the needs of such agricultural powerhouses as China, India and Brazil. Historically, farmers in developing countries have underutilized this nutrient, thus creating a higher level of growth potential relative to other nutrients.

Demand Driven Expectations

Given the population and income growth trends in these countries, potash demand is expected to increase more than 14 million tonnes K 2O (or the equivalent of almost 24 million tonnes KCI) between 2008 and 2020. Accordingly, expansion of our potash production capacity is a major strategic priority to ensure that Mosaic is positioned to meet this continuing demand and to maintain our position as a leading global supplier. This initiative represents a multi-billion dollar investment over a 12-year period and is expected to meet approximately 20% of the projected increase in global demand through 2020.

Our first major expansion project was completed in fiscal 2007, when our Esterhazy mine added 1.1 million tonnes to its annual capacity. More expansions are planned at our Esterhazy, Colonsay and Belle Plaine facilities. These new projects are expected to add an incremental annual capacity in excess of 5 million tonnes as they come on line in stages between 2009 and 2017.

Our Capital Advantage

As we undertake each of these expansion projects, we are maintaining a close watch on the global potash market to ensure that supply remains aligned with demand. Expansion economics are on our side. Our brownfield projects can be constructed at a capital cost that is significantly lower than a greenfield project. Should demand change, the pace of our expansions also can be modified.

With few greenfield projects anticipated over the next three years, a portion of expansion activity replacing depleted capacity and sustained record demand, there is every reason to believe that potash will continue to be an excellent business for Mosaic as this essential mineral enhances crop production around the world.