POTASH 2013 Q1 earnings call
William J. Doyle - President and Chief Executive Officer
In terms of the solution mine here in the province that came out with a very low initial number. We knew that that was unrealistic. That was put out by one of the promoters, Potash One. They bought this legacy project from Potash One for $434 million by the way, which you got to add to the $4.1 billion that’s out there, lot of people forget about that, but when you start looking at return you should make sure you add that on there, and then just a fact that there is a lot of clarity yet we had on cost of ports and rail cars that they don’t have identified yet and then you’re looking at the pretty tight job market here in Saskatchewan.
And the timing of all these things originally it was $3.2 billion for 2015. We knew that was anarchy from the beginning and so now we’re starting to see the bloom come off the rose, and this is what I’m saying, this is hard work and these are expansion projects, and there is whole lesson that in this business, you don’t want to be the first one to build the project. Greenfield generally has not been a successful formula in the fertilizer because you want to be the second or third owner. I feel it works, you can make that work especially if you get in early and you get some fixed contracts not these cost plus contracts are not absolutely dominating the scene, so you had to be early in the game to have it work for you but, Greenfield projects, the history going over the last 40 years, we’re here the one that builds it, you want to be the guy that picks up the pieces, as I said second owner or third owner, he is the one that ends up making it, because then you get the right cost structure.