LAUTERMILCH TO SUPPORT POTASH INDUSTRY'S MARKETING

Released on October 9, 1996

Energy and Mines Minister Eldon Lautermilch will be lending government
support to an industry-led potash market development initiative in
China, Oct. 11 to 19.

"Government representation at the ministerial level will assure the
Chinese of Saskatchewan's continuing interest in, and support of, their
agricultural development," Lautermilch said.

While in China, Lautermilch will deliver a keynote address to the
International Symposium of Fertilizers and Agricultural Development in
Beijing. The symposium is being co-sponsored by the Potash and
Phosphate Institute of Canada (PPIC) and the Chinese Ministry of
Agriculture. The symposium will highlight PPIC's China Potash Agronomy
Program.

PPIC is a fertilizer industry-sponsored agronomic organization, based
in Saskatoon, that promotes balanced use of fertilizers in export
markets.

China is Saskatchewan's second largest potash export market after the
United States and our most important growth market. The strong sales
to China in the past two years has resulted in the improved performance
of the Saskatchewan industry. The future growth of potash demand in
China is critical to the long-term growth of our industry.

The minister will be joined in China by PPIC and Canpotex officials.
Canpotex is the exclusive offshore marketing company for the
Saskatchewan potash industry.

"With the world market for potash becoming increasingly competitive, I
welcome this opportunity to lend support to the PPIC and Canpotex."

Lautermilch also plans to meet with the Chinese ministries of
Agriculture, Geology and Mining to explore other opportunities and to
promote Saskatchewan's interests.

Potash represents the largest mining industry in Saskatchewan with 10
mines spread across the province. The Saskatchewan potash industry
employs about 3,000 people, has annual capital spending of $60 million,
and is the largest producer and exporter of potash in the world.
Reserves of Saskatchewan potash are huge and are expected to last for
hundreds of years, given current rates of production.

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For more information, contact:

Maurice Hall
Energy and Mines
Regina
Phone: (306) 787-2521