[url]City approves extension and renegotiation of Western Potash agreement that 'turns poop into gold'
With an extension sought for a $200,000 standby fee from Western Potash Corp., Regina city council made the decision to approve the extension and renegotiate the contract with the company, but not before a great deal of debate at Monday’s council meeting.
“It is important to understand what is being asked,” Coun. Bob Hawkins said. “All that is being asked is an extension of five months to see if this agreement can be renegotiated.”
The original agreement from 2012 had the city supplying Western Potash with effluent water from the wastewater treatment plant to run at its proposed mine near Milestone. The mine was expected to be up and running by now but the price of potash has fallen from $900 per tonne in 2008 to $200 today, delaying the project.
With the new pricing, Western Potash now wants to start with a pilot plant that will expand to a full-scale operation at a later date. Originally, 2.8 million tonnes of potash were to be processed per year, but 146,000 tonnes will be processed instead and it will use much less effluent water than originally planned. Construction of the plant is expected to begin later this year.
With the extension now in place, Western Potash has until June to pay the standby fee...
https://leaderpost.com/news/local-news/city-approves-extension-and-renegotiation-of-western-potash-agreement-that-turns-poop-into-gold[/url]