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Report: Collapsing equipment at K+S potash mine in Canada may delay production start

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Report: Collapsing equipment at K+S potash mine in Canada may delay production start

An equipment collapse at K+S AG's C$4.1 billion Legacy potash mine in Saskatchewan led to"consequential damage," Reuters reported July 18, citing companyspokeswoman Maeghan Dubois.

Potentially, the incident may even affect the start ofproduction at the site, according to Reuters. Nosignificant injuries were reported.

Global News posted what it claimed was an image of thecrashed vessel, after reportedly receiving it from an unnamed worker at thesite.

K+S PotashCanada is aiming to start production at the mine by the end of 2016, withproduction expected to hit 2 million tonnes per annum by 2017-end.

The incident involved a process vessel falling after itssupport structure failed during routine testing.

Meanwhile, Investec said in a research note to clients thatany delay to this project might take pressure off the potash industry, which isstruggling with overcapacity and low prices.

K+S representative Dubois added that the company will takemeasures to "maximize progress" in advancing the project and proceedwith development "while emphasizing worker safety."