Agrium (TSE:AGU), a Canadian fertilizer maker, said it has restarted potash production at its Vanscoy mine in Saskatchewan after completing work to tie in its expansion project.
The facility is expected to ramp up production in the first half of 2015, with the target production volume for the coming year unchanged at 2.1 million metric tons, the Calgary, Alberta-based company said in a statement today.
The expansion is expected to increase annual output at Vanscoy by about one million tonnes over a three-year period between 2015 and 2017.
Production at Vanscoy was suspended in July after a mechanical failure on the operation’s main hoist system.
Last month, Agrium executives said the project would cost $2.3 billion, about 53 percent more than the original estimate three years ago when the expansion was announced.
The company estimated in December 2011 the expansion would cost about $1,500 per tonne of additional capacity–or about $1.5 billion and later increased that forecast in February 2014 to nearly $1.9 billion.
Agrium is a major producer and distributor of agricultural products and services in North America, South America and Australia.
Shares fluctuated between gains and losses in today’s trading and were down 0.1 percent at 1:36 p.m. in Toronto. The stock gained more than 13 percent this year.