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Engineering services contract for Vale Kronau Potash Project


Vale has awarded WorleyParsons an engineering services contract for its Kronau Potash Project (Kronau Project). The Kronau Project comprises a solution potash mine and is located near the hamlet of Kronau, approximately 30 km southeast of Regina in the province of Saskatchewan, Canada. The Kronau Project is Vale’s first potash project in Canada and is expected to produce about 3 to 4 million tonnes of potash per year for more than 40 years.

ASX Release

Potash is a key ingredient used in the manufacture of fertilizers and is a significant growth commodity directly linked to population growth and food security, particularly in developing nations. Canada is the largest producer of potash and has the largest reserve base.

WorleyParsons has been working on the Kronau Project since late 2010. This award will allow WorleyParsons to continue to support Vale with the critical definition phase of the project, concluding at the end of 2015, after which the project will be presented to Vale’s Board for full funding approval and sanction of the execute phase.

Commenting on the award, WorleyParsons’ Chief Executive Officer, Mr. Andrew Wood said "We are excited about the Kronau Project and remain firmly committed to supporting Vale to realize their business objectives for the development through the definition phase and potential future execute phase."

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