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POTASH INDUSTRY OUTLOOK OPTIMISTIC

Released on August 1, 2000

The Saskatchewan potash industry is off to a strong start in 2000 with sales to

the end of June totalling 8.4 million tonnes. This is an increase of 16 per

cent over the same period last year.



"There is a good chance that total Saskatchewan sales will exceed the record

level of 14.3 million tonnes set in 1997," Energy and Mines Minister

Eldon Lautermilch said.



Lautermilch attributed the increase primarily to higher sales to China and

other markets in Asia. Offshore sales are 25 per cent higher than for the same

period in 1999 while domestic sales (Canada and the US) are up by nine per

cent.



Potash production is also strong, up by 14 per cent from the mid-year figure

for 1999. Due to the strong sales this year, the industry has scheduled only

very brief mine shutdowns of two to four weeks for maintenance work.



The Saskatchewan potash industry employs about 3,100 people in 10 potash mines

located throughout southern Saskatchewan.



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For more information, contact:



Maurice Hall

Energy and Mines

Regina

Phone: (306) 787-2521



Comparison of Preliminary Potash Sales and Production



1999 2000

Sales(millions of tonnes)

mid-year 7.2 8.4

year-end 13.1 n/a



Production (millions of tonnes)

mid-year 7.3 8.3

year-end 13.0 n/a

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