20030447 Ver 1_One World_20061012

PCS
Phosphate VAURORA
PCS PHOSPHATE COMPANY, INC.
P.O. BOX 48, AURORA, NC U.S.A. 27806
October 10, 2006
Ms. Cyndi Karoly
NCDENR - Division of Water Quality
Wetlands/401 Wetlands Unit
1650 Mail Service Center
Raleigh, NC 27699-1650
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Dear Ms. 2roly:
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As manager of the environmental efforts at PCS Phosphate-Aurora, it gives me great
pleasure to provide you with a copy of "One World", PotashCorp's fourth annual
Sustainability Report. This publication provides insight into our corporation's
governance, economic, social and environmental historical performance and future
vision.
PotashCorp's President and Chief Executive Officer, William J. Doyle states, "For us,
sustainability is an integral element in our vision ... In pursuing this vision, we consider
our impact on investors, customers, employees, suppliers and the communities and
environment where we do business. All are essential to our long-term success." Our
Sustainability Committee has established priorities for our corporation within five
sustainability platforms: safety, diversity, stakeholder engagement, environment and
philanthropy.
Please note the references to our Aurora operation throughout the publication including
pages 7, 21, 22, 28, 58 and 61. Page 74 provides sustainability performance data
specific to the PCS Phosphate-Aurora facility.
As we continue to pursue permits that will provide a long-term, systematic and cost-
effective continuation of our mining operation, please use this publication as a reference
to our triple bottom line focus of economic, social and environmental performance.
Please feel free to contact me if I can provide more information or be of any assistance.
Sincerely,
Ross M. Smith
Manager, Environmental Affairs
PCS Phosphate Company, Inc.
Phone: [phone]
E-mail: [e-mail]
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O A Message from the President and CEO
one on one
THIS, OUR FOURTH ANNUAL
SUSTAINABILITY REPORT, is the
most comprehensive report on our
sustainability performance produced
to date. It clearly demonstrates the
importance we place on sustainability
throughout the company and the
significant progress we continue to
make on our journey.
For us, sustainability is an integral
element in our vision to be a successful
global fertilizer company, leveraging
our strengths in potash, nitrogen and
phosphate to feed the world. In
pursuing this vision, we consider
our impact on investors, customers,
employees, suppliers and the
communities and environment where
we do business. All are essential to our
long-term success.
I want to take this opportunity,
not only to share with you some of
our accomplishments in 2005, but
also to give you my perspective on the
trends and challenges that will shape
our sustainability priorities in the
coming years.
PotashCorp's sustainability
performance was noteworthy in
2005. We achieved the majority of
the sustainability targets we set for
ourselves. These are documented fully
in the governance, economic, social and
environmental performance sections of
this report. Among our achievements,
however, there are a few I would like
to highlight.
> We enjoyed a year of record
economic performance, resulting in
significant economic benefits for
many of our stakeholders, including
employees, investors, suppliers and
governments.
WITH THE PRESIDENT AND CEO
A Message from the President and CEO O
> We achieved a new record for
charitable giving and community
contributions. In a year characterized
by major global disasters, the
company and our employees
responded to the challenge. Early in
2005, we were among the first
companies to step forward following
the tsunami in Southeast Asia,
providing $1 million to the relief
effort. Later in the year when
Hurricane Katrina devastated New
Orleans and the surrounding area,
the company again responded -
providing $150,000 to two
organizations recommended by
our Geismar, Louisiana staff. Our
employees donated over $100,000 to
help those devastated by the tsunami
and by Hurricane Katrina, and the
company matched that amount
through its matching gift program.
PotashCorp reduced direct
greenhouse gas emissions in 2005 by
5.3%. Much of this was the result of
the use of newer technologies and
energy efficiency improvements for
both fuel and process gas.
We continued to improve energy
efficiency at many of our operations.
Between 2002 and 2005, energy
consumption per tonne of production
improved 19% at our potash
facilities and 14% at our phosphate
operations. Trinidad's 03 and 04
ammonia plants completed expansion
projects that increased their
ammonia output while reducing
energy per tonne of production by
11% and 4.5%, respectively. Similar
projects are planned for this site's
other ammonia plants in 2006.
> PotashCorp's Trinidad operation
has introduced a comprehensive
HIV/AIDS Program that provides
education and training, counseling
and risk control for all employees.
Unfortunately, we did not achieve
everything we set out to do. Although
our commitment to safety is a
longstanding corporate value and we
track our safety performance
continuously, we fell short of the record
safety performance achieved in 2004.
We responded by revitalizing our safety
efforts. We established a Senior Safety
Leadership Team whose goal is to
create a safety culture throughout
PotashCorp that eliminates behaviors
and conditions that cause accidents.
Each facility has now developed a
Safety Action Plan.
The theme of this year's
Sustainability Report is "One World."
In adopting this theme we are
recognizing that as a global company
our future success is intimately
intertwined with global developments:
demand, supply, competition, tensions
and even natural disasters thousands of
miles away that can affect PotashCorp's
operations.
Looking forward, I want to highlight
the global trend toward rapid economic
growth in countries like China and
India, which will shape our success as a
sustainable company in the longer term.
Growth in these countries is driving
demand for better food. This, in turn,
is driving demand for potash, the
nutrient with the greatest impact on
food quality, and the ingredient where
we are best positioned to bring on
additional production to meet rising
demand. This trend validates our
We also are embarking on a new
initiative that will encourage and
involve our business partners in
PotashCorp's sustainability journey.
Our view is that we can achieve much
more together than if we each act
alone. Last year we began the process
of verifying that our key suppliers
shared our commitment to human
rights and sustainability practices. This
year we are focusing on our customers.
We are launching a new advertising
campaign that pays tribute to those
agricultural retailers and dealers who
are promoting sustainable business
practices as they enrich their
communities.
I want to thank our employees and
business partners for their commitment
and efforts in achieving so much
during this past year. As always, your
continued contributions are essential to
our success as we strive to become a
sustainable business leader. I would also
like to thank the board for overseeing
and guiding our efforts.
We are pleased with our progress,
but much more remains to be done. I
look forward to another productive year
on our journey to sustainability.
Potash First strategy.

William J. Doyle
President and CEO I PotashCorp I August 1, 2006
Committee Letter
a letter
FROM THE
SUSTAINABILITY COMMITTEE
2005 MARKED A SIGNIFICANT
EVOLUTION IN THE ROLE OF THE
SUSTAINABILITY COMMITTEE.
When the committee was established
in 2001, its primary mandate was to
oversee the annual process of reporting
on PotashCorp's sustainability
performance and the development
of a sustainability framework for the
company. Today, the committee is
engaged in discussions on long-term
issues that affect the company as it
strives to become more sustainable
and more global.
There have been changes, too,
with respect to participation in the
committee. While the core membership
remains unchanged, the committee has
been enhanced by the presence of the
CFO, the General Counsel and the Vice
President of Internal Audit who are
participating in its meetings. This brings
new perspectives to the discussion and
decision-making. It also ensures that
most of the senior executives with
responsibility for implementing
sustainability initiatives are fully
involved in the initial decision process.
The committee has set a number of
sustainability priorities for PotashCorp
in the coming year. These five
"sustainability platforms" are:
> Safety - A safe and healthy
workplace is a productive workplace.
We will continue to take proactive
measures to improve our safety
performance. PotashCorp has
recently created a high-level team
focused on the prevention of
accidents among employees and
contractors. This Senior Safety
Leadership Team is shifting
attention from traditional safety
measures such as the frequency of
lost-time injuries or recordable
accidents and placing greater
attention on eliminating behaviors
and conditions that could lead to
accidents. In addition, each facility
develops an annual Safety Action
Plan to address measurable
performance in behavior-based
safety, key procedures, contractor
safety and organizational culture.
> Diversity - Respecting and
leveraging workforce diversity is a
key element in our goal to become
a truly global company. It also is an
important issue with our employees
who gave diversity in the workplace
a high ranking in the most recent
employee engagement survey. In the
coming year we will do more to
promote diversity. We are sharing
best practices at our company-wide
Human Resources meetings, and
we're developing an online training
module that addresses diversity in
the workforce.
> Stakeholder Engagement - A key
element of our stakeholder
engagement process is the use
of annual surveys of customers,
employees, communities and
investors. These surveys have
told us that we clearly outperform
our competitors in effectively
communicating with investors and
customers. We intend to use this
same communications model to
achieve a high degree of meaningful
dialogue with other stakeholder
groups. We also plan on expanding
the use of Community Advisory
Panels in our host communities.
> Environment - Our ongoing goal
is no harm to the environment.
Our emphasis will be to continue to
reduce our energy requirements and
our greenhouse gas emissions per
tonne of production. In addition,
Committee Letter O
we will continue to ensure that our
capital investments in new plant,
equipment and processes are aligned
with these priorities.
> Philanthropy -While continuing
to focus our charitable giving in the
areas of education, the arts, culture
and health care, we will also strive
to ensure our philanthropy balances
both local and global needs. In
addition, through improvements
in PotashCorp's matching gift
program, we will more directly
involve our employees in the
company's philanthropic activities.
The matching gift program provides
a framework that ensures strong
linkage between employees'
charitable causes and those of
the company.
The committee was involved in
a number of operational decisions
designed to advance sustainability
within the company. Examples include:
> The committee decided to adopt
the G3 reporting framework as a
guide for the 2005 Sustainability
Report. G3 is a further refinement
of the Global Reporting Initiative
(GRI) international guidelines for
sustainability reporting. Using G3
enables us to place more emphasis
on reporting our performance and
demonstrating more clearly what
we have achieved. The decision
also demonstrates our commitment
to greater transparency and more
disclosure.
> The committee has begun an
outreach program with other
companies to learn how they are
addressing sustainability issues
within their organizations and
to share best practices.
> The committee has strengthened
its operating procedures to ensure
it continues to keep the board
informed of key sustainability
developments in a timely manner.
> Committee members played an
important role in communicating
PotashCorp's sustainability vision
and commitment to key stakeholder
groups inside and outside the
company.
Like all of our fellow employees, the
committee is pleased with the
recognition that many of our facilities
received for their safety, environmental
and community performance in 2005.
This is documented in the performance
sections of this report. Significant
awards included:
> The phosphate operation at Aurora
won the Outstanding Reclamation
Award from the National
Association of State Land
Reclamationists for its efforts at
Whitehurst Creek. The restoration
involved enhancements to the
aquatic culture and stream system,
and the area is once again home
to fish, birds and other wildlife.
> The company received five national
awards from the Canadian Institute
of Chartered Accountants (CICA)
PotashCorp Sustainability Committee > James F. Dietz Betty-Ann Heggie
Executive Vice President and Senior Vice President,
Chief Operating Officer (COO) Corporate Relations
including awards for its sustainability
report and corporate governance
disclosure.
> PotashCorp was also named one
of Canada's 50 Best Corporate
Citizens of 2005 by Corporate
Knights magazine. The list represents
those companies that "are best
living up to their civil foundation
responsibilities."
> PotashCorp was again certified
as a "valued member" of the
FTSE4Good Index Series. This
distinction resulted from meeting
this London-based index company's
criteria for corporate social
responsibility.
> New Brunswick Division was the
recipient of the 2005 Canadian
Institute of Mining, Metallurgy and
Petroleum's National John T. Ryan
Award for Select Mines. The award,
which is the most prestigious of all
safety awards in the mining industry
in Canada, recognizes the New
Brunswick Division for working
throughout 2005 without a single
modified-work or lost-time accident.
We are proud of what the company
and its employees have accomplished
over the past few years and our role
in guiding that achievement. We are
confident the sustainability initiatives
we have taken provide the foundation
for steady and focused progress for
many years to come.
John R. Hunt
Vice President, Safety,
Health and Environment
Barbara Jane Irwin
Senior Vice President,
Administration
O Organizational Profile
POTASHCORP* is the world's largest fertilizer enterprise by capacity, producing
potash, nitrogen and phosphate products - the three primary plant nutrients.
Potash 1 Allan SK
2 Cory SK
3 Esterhazy SKI
4 Lanigan SK
5 Patience Lake SK
6 Rocanville SK
7 New Brunswick NB
Phosphate
Nitrogen
1 Aurora NC
2 Fosfatos do Brasil
3 Geismar LA
4 Joplin MO
5 Marseilles IL
6 Weeping Water NE
7 White Springs FL
1 Augusta GA
2 Geismar LA
3 Lima OH
4 Memphis TN
5 Trinidad
OVERVIEW
It is the world's largest potash company,
with 22% of the world's overall capacity.
It is also the world's third-largest
phosphate producer and fourth-largest
nitrogen producer.
The company's products are used by
fertilizer, feed and industrial customers
on six continents.
PotashCorp has its head office in
Saskatoon, Saskatchewan, and a major
corporate office in Northbrook,
Illinois. It also has production facilities
in four countries.
LEGAL FORM AND OWNERSHIP
PCS Inc. is a publicly traded Canadian
corporation (organized under the
Canada Business Corporations Act)
with all shares listed and traded on the
Toronto and New York stock exchanges
(symbol POT).
The company had 103.6 million
common shares outstanding at the
end of 2005. Ownership is widespread
among institutional and retail
shareholders primarily in Canada and
the United States, but also in Europe.
Investments 1 Arab Potash Company (APC),
Jordan (28%)
2 Israel Chemicals Ltd. (ICL),
Israel (10%)
3 Sociedad Quimica y Minera de
Chile S.A. (SQM), Chile (25%)
4 Sinochem Hong Kong Holdings
Limited (Sinofert), China (20%)
1 PotashCorp's mineral rights at Esterhazy are
mined by Mosaic Potash Esterhazy Limited
Partnership under a long-term agreement.
*References to PotashCorp are to Potash Corporation of Saskatchewan Inc. (PCS Inc.) and its wholly-owned subsidiaries, individually, collectively or in any combination.
Organizational Profile O
BUSINESS SEGMENTS
AND OPERATIONS
The company has three reportable
business segments: potash, nitrogen
and phosphate.
In 2005, PotashCorp had potash
operations in Canada; phosphate
operations in the United States and
Brazil; and nitrogen operations in the
United States and Trinidad.
PRODUCTION
PotashCorp produces most of the
products it sells. It does not use
outsourcing as a production strategy.
Potash Operations
The company's potash operations
include the mining and production
of potash, which is predominantly used
as fertilizer. In 2005, potash production
from all operations consisted of 8.8
million tonnes of potash (KCl),
representing 47% of North American
production. PotashCorp's present
annual potash capacity is approximately
12.9 million tonnes KCl.
Phosphate Operations
PotashCorp mines phosphate rock and
manufactures phosphoric acid, solid
and liquid fertilizers, animal feed
supplements and industrial phosphoric
acid - mainly purified phosphoric acid
- which is used in food products and
industrial processes. In 2005, the
company produced 7.6 million tonnes
of phosphate rock and 2.1 million
tonnes of phosphoric acid.
Nitrogen Operations
PotashCorp's nitrogen operations
include production of nitrogen
fertilizers for agricultural purposes and,
most significantly, nitrogen products
for the stable industrial market.
Unlike potash and phosphate,
nitrogen is not mined. It is extracted
from the air and reacted with a
hydrogen source, usually natural gas
Potash
> Five mines and mills, and mining rights to potash reserves at a sixth location,
all in Saskatchewan
> One mine and mill in New Brunswick
Phosphate
> A mine and processing plant in North Carolina
> A mine and two processing plants in Florida
> A processing plant in Louisiana
> Phosphate feed plants in five US states and one in Brazil
> Two industrial phosphoric acid plants in North Carolina and Ohio
Nitrogen
> Four plants in the states of Georgia, Louisiana, Ohio and Tennessee
> One urea and four ammonia plants in Trinidad
Source: PotashCorp
Supplier Product(s)
Natural Gas Company of Trinidad Natural gas
CN Railway: Company Rail transportation
Progress Energy Electricity
Office Cherifien des Phosphates (OCP) Phosphate rock
Sequent Energy Management LLC Natural gas
Overseas Marine Services Ocean transport
Koch Nitrogen Nitrogen products
Norfolk Southern Railway Rail transportation
Transammonia Inc. Ammonia and sulfur
BG LNG Services Natural gas
*Based on dollar value Source: PotashCorp
reformed with steam, to produce
ammonia. The company can produce
ammonia at all of its US nitrogen
plants and in Trinidad. The ammonia is
used to produce a full line of upgraded
nitrogen products, including urea,
nitrogen solutions, ammonium nitrate
and nitric acid. Ammonia, urea and
nitrogen solutions are sold as fertilizers
to agricultural customers and to
industrial customers for various
applications, while nitric acid and
ammonium nitrate are sold to industrial
customers. Urea is also sold for animal
feed applications.
SUPPLIERS
Production feedstocks, such as
natural gas and sulfur, account for the
major part of PotashCorp's annual
procurement. Other significant goods,
services and materials purchased
include rail and ocean freight services,
electricity, materials for maintenance
and repair, and contract services.
The total value of goods, materials
and services purchased by PotashCorp
in 2005 was just over $2.2 billion.
These are provided by over 370 key
suppliers, located mainly in the United
States, Canada and Trinidad.
10 Organizational Profile
_ 2003 2004 2005
Potash 35% to United States 35% to United States 34% to United States
6% to Canada 4% to Canada 5% to Canada
59% to other countries 61% to other countries 61% to other countries
Phosphate 75% to United States 65% to United States 63% to United States
9% to Canada 8% to Canada 7% to Canada
16% to other countries 27% to other countries 30% to other countries
Nitrogen 94% to United States 93% to United States 93% to United States
1% to Canada' 0.2% to Canada ` 1% to Canada
5%a to other countries 6.8% to other countries 6% to other countries
Source: PotashCorp
$ millions
Dec 31, 2004 Dec 31, 2005

Current assets
1,244 __
1,111
Property, plant and equipment 3,099 3,263
All other assets 784 984
Total Assets 5,127 5,358
Current liabilities 704 1,096
Long-term debt 1,259 1,258
Future income tax liability 499 543
Pension and post-retirement 193 214
All other liabilities 86 ` 114
Total Liabilities 2,741 3,225
Share capital 1,408 1,379
Contributed surplus 276 36
Retained' earnings 702` 717 `
Shareholders' Equity 2,386 2,133
Source: PotashCorp
INVESTMENTS
The company's major investments are
in publicly traded companies focused
in potash and include a 28% interest
in Arab Potash Company (APC) in
Jordan; a 25% interest in Sociedad
Quimica y Minera de Chile S.A.
(SQM) in Chile, which produces
upgraded specialty potash products;
and a 10% interest in Israel Chemicals
Ltd. (ICL) in Israel, another leading
low-cost potash producer. PotashCorp
also recently purchased a 20% share
of Sinochem Hong Kong Holdings
Limited (Sinofert), a vertically-
integrated fertilizer company in China.
SALES AND MARKETS
Sales
In 2005, PotashCorp sold products
worth over $3.5 billion, an increase of
67% since 2001. The growth over this
period is primarily the result of higher
sales volumes and prices of high-margin
potash products, supplemented by
higher prices for nitrogen products
and non-commodity phosphates.
Sectors Served
PotashCorp's products serve three
different market sectors:
> Fertilizer, which involves the
nutrients potash, nitrogen and
phosphate;
> Animal feed supplements, mostly
phosphate; and
> Industrial, mainly nitrogen products
for industry and purified acid in
phosphate.
Fertilizer is the most important
business, and over the last three years
has made up 60% of net sales and
produced 69% of gross margin. Potash,
the core nutrient in the company's
long-term strategy, is the most
significant part of the fertilizer
business, producing 83% of its gross
margin over the same period.
Markets
On a company-wide basis, North
American markets account for the bulk
of PotashCorp's sales volumes. In 2005,
94% of PotashCorp's nitrogen sales,
70% of phosphate sales and 39% of
potash sales were made within North
America.
Offshore markets are growing
rapidly, driven primarily by growth in
potash. Nearly two-thirds of the
company's potash production goes to
offshore markets, with China, Brazil
and India being the largest buyers.
Additionally, offshore markets account
for 30% of PotashCorp's phosphate
sales. Offshore sales of nitrogen
products were 6%.
Customers
PotashCorp has a diversified customer
base. In potash, Canpotex Limited
(Canpotex), the offshore marketing
company owned by the three
Saskatchewan producers, handles all
sales of Saskatchewan potash destined
Organizational Profile 11
for offshore markets. Apart from sales
through Canpotex, no one customer
accounted for more than 10% of
PotashCorp's sales in 2005.
In North America, PotashCorp sells
all three nutrient fertilizers to retailers,
cooperatives and distributors that
provide storage and application services
to farmers, the end users. Offshore
customers are governments and private
importers that tend to buy under
contract, while spot sales are more
prevalent in North America.
Nitrogen and phosphate are
important to industry as inputs for
a wide range of products. Industrial
customers for nitrogen products and
phosphoric acid, including purified acid,
are based in the United States, and the
company enjoys long-term relationships
with them. They include industrial
intermediate and product manufacturers
such as BASF and DSM in nitrogen
and ICL and Innophos in phosphate.
Offshore growth in industrial products
that require nitrogen and phosphate
inputs is being driven by rising incomes
in fast-growing nations.
Sales of animal feed products have
significantly less seasonality and
cyclicality than fertilizer sales. US bulk
feed producers are the main feed
customers, and their relatively close
proximity to the company's plants is an
advantage. Brazil and Mexico are the
largest offshore customers for animal
feed products.
EMPLOYMENT
PotashCorp has about 4,900 regular
employees in four countries. More than
half of this workforce is in the United
States (53%), followed by Canada (37%),
Trinidad (8%) and Brazil (2%). In 2005,
there were also four employees working
at APC in Jordan.
In addition, 772 contract employees
provided services to PotashCorp in
2005, primarily at its US nitrogen and
phosphate operations.
CAPITALIZATION
Debt
At the end of 2005, PotashCorp had
total debt of $1.5 billion. Most of this
was in the form of long-term debt.
Equity
PotashCorp had 103,593,792 common
shares issued and outstanding at
December 31, 2005. Shareholders'
equity totaled $2.1 billion.
ASSETS AND LIABILITIES
At the end of 2005, the book value
of PotashCorp's assets was $5.4 billion.
Most of this was accounted for by
current assets of $1.1 billion (primarily
inventories and accounts receivable) and
property, plant and equipment of $3.3
billion. The company's investments in
offshore potash companies account for
the bulk of other assets.
Corporate liabilities totaled $3.2
billion. Short-term liabilities (short-
term debt and accounts payable)
amounted to $1.1 billion of this. Other
major items were long-term debt of
$1.3 billion, future income tax liability
of $543.3 million and accrued pension
and other post-retirement benefits of
$213.9 million.
Shareholders' equity at the end of
2005 was $2.1 billion. This line item was
impacted in 2005 by the authorization
and completion of PotashCorp's share
repurchase program, which saw the
company purchase and cancel 9.5 million
of its common shares for a cost of
$851.9 million. The repurchase resulted
in a reduction of share capital,
contributed surplus and retained
earnings of $125.1 million, $264.3
million and $462.5 million, respectively.
2001 2002 2003 2004 2005
United States 2,705 2,823 2,641 2,670 2,589
Canada 1,654 1,687 1,693 1,754 1,791
Trinidad 336 397 395 395 406
Chile* 220 218 99 8 0
Brazil 82 74 76 79 93
Total Employees 4,997 5,199 4,904 4,906 4,879
*In December 2004, PotashCorp concluded the sale of 100% of its shares of PCS Yumbes to SQM
Source: PotashCorp
$ millions, except as noted
_ Dec 31, 2004 Dec 31, 2005
Short-term debt 93.5 252.2
Current portion of long-term debt 10.3 1.2
Long-term debt 1,258.6 1,257.6
Total debt 1,362.4 1,511.0
Shareholders' equity 2,385.6 2,132.5
Total debt to capital 36% 41%
Fixed rate debt as % of total indebtedness 92% 83%
Common shares outstanding (#) 110,630,503 103,593,792
Stock options outstanding (#) 6,400,730 5,081,756
Dividend payout ratio 20% 12%
Source: PotashCorp
12 Goals and Targets
0 0 0
sustainabillt Y
goals and targets
We believe accountability means more than simply reporting our performance. Here we establish
our sustainability goals and targets for 2006. Our performance against 2005 targets is set forth
within the individual performance sections of this document.
Goals 2006 Targets
To be a leader in corporate governance. 1. Remain in the top quartile of governance practices as measured by
external reviews.
To ensure board level oversight of all key 1.The board and responsible committees will review the company's sustainability
sustainability initiatives. performance against the Corporate Sustainability Assessment criteria adopted
by the Dow Jones Sustainability Index.
To have effective stakeholder engagement processes. 1. Continue to survey annually each of our major stakeholder groups and report
the results to the board.
Refine corporate management systems to 1 Ensure that all sites develop sustainability plans that include SHE, diversity;
achieve sustainability goals. energy, community, training and local sourcing goals.
2.PotashCorp's Enterprise Risk Management Committee will assess the strategic
and potential financial impacts of climate change and future GHG regulations
for PotashCorp and develop appropriate strategies.
3. Designate a corporate executive to focus on the objectives and
specific projects identified by the Sustainability Committee.
Goals 2006 Targets
To meet customer needs and expectations. 1. Continue conducting annual surveys to monitor customer attitudes about
quality and service. [ongoing target]
2. Outperform competitors on quality and service as measured by customer
surveys. [ongoing target]
To ensure that employees share in the 1. Increase the percentage of employees eligible to participate in annual short
company's economic success. term incentive bonus program from 4% of the workforce to 30%.
To promote sustainability by leveraging 1. Ensure that all suppliers and contractors meet our Safety; Health and
supplier relationships. Environment (SHE) expectations.
To meet the needs and expectations 1. Exceed total shareholder return performance for our sector and companies
of our providers of capital. on the Dow Jones U.S. Basic Materials Index (DJUSBM) for 2006.
2. Carry a higher multiple than the average of other fertilizer companies on
both earnings and cash flow.
To improve the socio-economic 1 Continue to identify opportunities for more local sourcing at each site.
well-being of our communities. 2. Continue process of engagement with Aboriginal representatives in
Saskatchewan to address job opportunities and skill requirements.
See measures of PotashCorp's 2005 performance
based on Global Reporting Initiative (G3) indicators at
www.potashcorp.com/2005SR/GRI.
Goals 2006 Targets
To have motivated and productive employees 1. Fill at least 75% of senior staff openings with internal candidates.
committed to our tong-term goals. 2. Maintain or improve employee engagement levels as measured by employee
engagement survey.
3. Integrate sustainability issues into recruitment, training and employee
communications. Focus for 2006 will be training.
4. Decrease rate of employee turnover at Trinidad operations.
5. Develop a company-wide policy that addresses diversity in the workplace.
6. Strengthen existing policies and programs as needed to address issues
related to employees with chronic and life-threatening illnesses.
7. Provide diversity education to employees by participation in a training module.
To promote sustainability through the 1. Complete review of human rights policies and performance by all of
supply chain management process. PotashCorp's key vendors.
To strengthen relationships with our communities. 1. Continue to be engaged with community support projects at each of
our plants and offices.
2. Achieve a 10% increase in individual participation in the matching gift
program and a 20% increase in total donations.
3. Provide a site-specific sustainability report to each of our host communities.
4. Continue to survey community leaders and implement appropriate responses
to survey results.
5. Formalize corporate-donations guidelines with a written policy and post it on
the company's website.
Goals 2006 Targets
To have no harm to people, no accidents 1. Reduce recordable and lost-time injury rates by 30% from 2005 levels.
and no damage to the environment. 2. Initiate a program for review of contractors' safety performance for use as
a priority selection criterion, and that ensures appropriate safety monitoring is
provided based upon historical safety performance.
3. Reduce reportable releases and permit excursions by 30% from 2005 levels.
4. Achieve 100% compliance on all environmental, safety and security
audit action items.
5. Improve carbon-based energy efficiency in Trinidad by 10% from 2005.
6. Further develop the company's biodiversity programs at operating sites.
Goals and Targets 13
14 Governance

GOVERNANCE
TO BE SUSTAINABLE, a company must clearly define board and management
roles and responsibilities and its relationships with stakeholders. Recognized for
leadership in governance, PotashCorp is committed to remaining a leader.
Governance and
Sustainability
For PotashCorp, governance, value
creation and sustainability entwine
intimately. Governance deals with roles
and relationships among management,
boards, shareholders and other
stakeholders. Good governance
recognizes that a successful business
must respond to stakeholder interests.
When governance fails, the
repercussions hit a wide range of
stakeholders, including shareholders.
To be sustainable, a company must
clearly define board and management
roles and responsibilities and its
relationships with stakeholders.
Recognized for leadership in
governance, PotashCorp is committed
to remaining a leader.
The company continues to
strengthen its corporate framework
for implementing its commitment
to sustainability and managing its
sustainability performance. Its
governance practices, management
systems and efforts to engage
stakeholders are designed to embed
sustainability within the company.
PotashCorp continues to receive awards
for its governance and reporting.
2005
• Canadian Institute of Chartered Accountants (CICA) presented PotashCorp with its 2005
Award of Excellence for Corporate Reporting. This is the second successive year
PotashCorp has won this award.
CICA also awarded the company four other corporate reporting awards, including top
honors for best financial reporting.
> PotashCorp's corporate governance practices were ranked in the top 10% of leading
Canadian companies evaluated by Report on Business Magazine.
The company was named one of Canada's 50 Best Corporate Citizens of 2005 by
Corporate Knights magazine and certified as a "valued member" of the FTSE4Good
Index Series.
Governance IS
GOALS AND PERFORMANCE,
PotashCorp sets long-term governance
goals and annual targets. The table at
right illustrates that most of the
governance targets set for 2005 were
achieved.
THE BOARD OF DIRECTORS
Role of the Board
The Board of Directors oversees the
management of PotashCorp's global
business, including its commitment to
sustainability. It has the authority and
obligation to protect and enhance
company assets in the interests of
shareholders.
In pursuing the company's best
interests, the board considers
employees, customers, investors,
suppliers and the communities and
environment where PotashCorp does
business, recognizing that each is
essential to success.
The board has adopted
comprehensive governance principles
that address such issues as board
independence and integrity, functions,
selection and composition, and
committees. A charter sets out its
responsibilities and the limits to
management's responsibilities. The
board is charged with:
> Ongoing oversight and approval of
the company's business strategy
> Appointment of the Chief Executive
Officer and monitoring his or her
performance
> Appointing corporate officers
> Establishing standards for
management and monitoring
performance
> Approving procedures for strategy
implementation; overseeing the
identification and management of
2005 Targets 2005 Results
*Achieved ()Partially Achieved O Not Achieved
Goal. To be a leader in corporategovernance.
1. The Board of Directors will set for • The mandate of the corporate governance committee
itself key sustainability targets. was expanded to include review of sustainability
issues that are not addressed by other committees.
These include social issues, such as, philanthropy
and human rights issues, and certain economic
issues involving stakeholder relationships with
customers and investors.
2. Establish procedures for board review • The board's various committees have established
of compliance with commitments procedures to track the company's compliance with
made to stakeholders. commitments made to stakeholders.
3. Begin a formal board education • The board undertook a crisis communication
process that will include crisis drill in 2005.
communications training.
4. Present results of key stakeholder • The Senior Vice President of Corporate Relations
surveys to the board. makes an annual presentation to the full board on
stakeholder engagement, including the results of
surveys and research regarding the satisfaction and
attitudes toward the corporation of customers,
investors, community leaders and media.
5. Remain in the top quartile of • PotashCorp's governance practices were ranked in
governance practices, as measured by the top 10% of 209 S&P/TSX companies evaluated
external reviews. by Report on Business Magazine.
Goah To have effective stakeholder engagement processes.
1. Continue to survey each of our key • All key stakeholder groups were surveyed in 2005
stakeholder groups annually. (i.e., customers, investors, employees, host communities).
In addition, an evaluation was undertaken of how
PotashCorp was reported on by the news media.
2. Each PotashCorp production facility • This was accomplished at every site. Most
will participate in at least one PotashCorp locations participated in multiple
community meeting during the year. community meetings.
Goak Refine corporate management systems to achieve sustainability goals.
1. Develop a common set of 0 Sustainability expectations are being integrated into
sustainability expectations for all the Key Performance Indicators (KPI) process.
divisions and sites.
2. Develop a consolidated database on V This was partially completed in 2005 and should be
all PotashCorp policies, along with completed in 2006.
appropriate communications and
educational materials for employees.
3. Begin developing site-specific 4) This process is underway. Operating sites have set
sustainability plans that include SHE, targets in a number of areas of sustainability (such
social, energy, community, training as SHE, energy and community). This initiative is
and local sourcing goals; continuing in 2006.
16 Governance
risks; ensuring the integrity of
internal control and management
information systems; monitoring
compliance with internal policies
and procedures, external legal
requirements and high ethical
and moral standards
> Accurately reporting business
performance to current and
prospective shareholders.
The complete text of PotashCorp's
Governance Principles, Board Charter
and other governance policies can be
found on the company's website,
www.potashcorp.com.
Board Responsibility for Sustainability
Board committees are responsible for
sustainability issues in their areas of
oversight, ensuring that all aspects of
sustainability are addressed on an
ongoing basis.
> The compensation committee
annually reviews the CEO's
performance against established
goals and objectives, some of which
relate to sustainability performance
(including improvements in safety,
fostering a culture of integrity and
social responsibility, and providing
leadership for the company with
stakeholder groups).
> The audit committee helps the board
fulfill its oversight responsibilities for
the integrity of PotashCorp's
financial statements and compliance
with legal requirements and ethical
issues. It also oversees the company's
major policies on risk assessment and
risk management.
> The safety, health and environment
committee's mandate is to review
and, as appropriate, recommend
changes to the company's safety,
health, environmental and security
policies as well as monitor
compliance with them and applicable Board Independence
legislation and regulations. Other than the CEO and one outside
> The corporate governance committee
recommends to the Board of
Directors corporate governance
principles for the company. It reviews
sustainability issues not addressed by
other committees (such as the safety,
health and environment committee).
These include social issues, such as
philanthropy, human rights issues and
policies, and certain economic issues
involving stakeholder relationships
with customers and investors.
See more Sustainability Initiatives of the
board at www.potashcorp.com12005SR1
governance.
Processes for Board Oversight of
PotashCorp's Sustainability Performance
The board addresses aspects of
sustainability at every meeting, or a
minimum of eight times per year. Some
meetings include special sessions to
deal with specific topics. In 2005, there
were special sessions on strategy and
risk management.
Board Composition
PotashCorp's board has 12 members,
residents of Canada, the United States
and the Dominican Republic. Women
comprise 25%. See chart below.
director, all board members are
independent directors. The board has
adopted categorical independence
standards modeled after New York
Stock Exchange rules. An affirmative
determination of the independence of
each director or nominee is made in
accordance with those standards.
The basis for such determination is
disclosed in the annual proxy circular.
Expertise
Although directors may be elected to
bring special expertise or a point of
view to board deliberations, they are
not chosen to represent a particular
constituency. The best interests of the
company and its shareholders are
always paramount.
Directors receive training to fulfill
their obligations. The board adopted
a New Director Orientation Policy
designed to provide each new director
with a baseline of knowledge about
PotashCorp that will serve as a basis
for informed decision-making. To
facilitate ongoing director education,
the company conducts one in-house
board training session annually. In
addition, the company will fund each
director's attendance at one seminar or
conference of interest and relevance
% board members who are female
% board members from minority groups
% board members age 30 - 50
% board members over age 50
Source: PotashCorp
_2003_ 2004 _ 2005_
25 25 25
8 8 8
8 8 8
92` 92 92
Governance 17
each year, and each committee Chair at
one additional seminar or conference.
The board's knowledge and skills
were further enhanced in 2005 with
regular updates on governance best
practices. The board also participated in
a crisis communications drill to gauge
its ability to respond to a significant
threat to the company.
Mechanisms to Provide
Recommendations to Board
The board has established procedures
for shareholders or other interested
parties who wish to communicate with
it, in writing or by e-mail. Matters
relating to accounting, internal
accounting controls or auditing matters
will be referred to the audit committee.
Other matters will be referred to the
board Chair. The board also has
established procedures for employees'
confidential, anonymous submission
of concerns regarding questionable
accounting or auditing matters. In
addition, it has published a procedure
for shareholders to suggest nominees
for election to the board.
Sustainability Issues Raised by
Shareholders and Employees
Issues related to economic,
environmental and social performance
raised with the board by shareholders
in 2005 included recommendations
that the board adopt policies on
biodiversity, HIV/AIDS and the
election of directors by majority vote.
One institutional investor informed
the board that it withheld votes from
some directors because, in its view, they
lacked independence and served on key
committees. This investor considered
several directors not to be independent
solely because their length of service
exceeded 10 years. This prompted a
thorough consideration of the issue
of term limits by the board. It was
determined that the company's
experienced directors have the
confidence and institutional knowledge
necessary to articulate competing points
of view and to challenge management,
especially in the area of strategy. As a
result, the board will continue to rely
on its evaluation process rather than
arbitrary term limits.
Processes to Avoid Conflicts of Interest
The board has a comprehensive process
for determining director independence.
Only independent directors serve on
key committees. Any matter involving a
director is acted upon only after full
disclosure of the facts and without the
participation or attendance of the
affected director.
Processes for Evaluating
the Board's Performance
The board has an evaluation process
for determining the effectiveness of
individual directors and committees.
It includes:
> Annual board assessment by all
directors
> Annual assessment of each
committee by members of that
committee
> Annual assessment of the board
Chair by members of the board
> Annual assessment of each
committee Chair by members of
each committee
> Annual assessment of individual
directors by the Chair with input
from the other directors.
LINKAGE BETWEEN
COMPENSATION AND
PERFORMANCE
The board believes that the economic
interests of directors should be aligned
with those of shareholders. To achieve
this, all directors are expected to hold
shares and/or deferred share units in
the company.
The CEO's annual salary is
determined primarily on the basis
of his or her individual performance
and the performance of the company.
The board's compensation committee
considers all factors it deems relevant,
including PotashCorp's financial
results, corporate governance,
sustainability goals and the CEO's
individual performance relative to
written objectives established at the
beginning of each year. The goals and
related achievements are set out in the
annual proxy circular.
The company believes that aligning
compensation with performance is in
the best interests of all stakeholders. It
places significant emphasis on pay-for-
performance, with "at risk" components
of total compensation linked to the
enhancement of cash flow return and
total shareholder return. The more
senior the management position, the
greater the proportion of compensation
that is "at risk."
CODES AND POLICIES
PotashCorp has embedded
sustainability considerations into its
corporate vision, which states that the
company constantly links its financial
performance with areas of extended
responsibility - the environment, its
economic and social stakeholders, and
all who depend on it.
This vision is supported by its core
values of safety, integrity, listening,
sharing, accountability and continuous
improvement.
The company's sustainability
commitment is supported by codes and
policies that apply to all its operations.
> Its Code of Business Conduct contains
many of the company's commitments
to integrity, sustainability, and respect
for human rights and the rule of law.
18 Governance
Our Sustainability Vision
in pursuing the best interests of the company, we consider our impact on investors, customers,
employees, suppliers and the communities and environment where we do business. All are essential
to PotashCorp's long-term success.
Our Sustainability Commitments
Health and Safety Our goal is no harm to people, no accidents.
Integrity We operate with integrity and respect for human rights and the
rule of law.
Governance- We are committed to being a leader in corporate governance,
recognizing that it is the cornerstone of a sustainable
organization.
Financial Performance We will manage our financial performance to maximize long-
term value for shareholders.
Environmental Responsibility Our goal is no damage to the environment.
Energy We will use energy efficiently and constantly strive to improve.
Employees We are committed to respect for human dignity and fairness in
the workplace.
Stakeholder Engagement We listen to all stakeholders.

Community Development -- -- ------ _ - --_W
One measure of our success is the economic activity we
generate in the communities where we operate.
Customers and Business Partners We work to create mutual advantage in all our relationships.
> Its Safety, Health and Environmental
Policy provides a framework for
continuous improvement in safety
performance through the
involvement of every employee.
It also commits PotashCorp to
drive down the environmental and
health impact of its operations
by reducing waste, emissions and
discharges and using energy
efficiently. In addition, it requires
the company to produce quality
products that can be used safely.
> The Respect in the Workplace Policy
forbids any unwelcome conduct or
harassment in the workplace based
on an individual's race, color,
religion, gender, national origin, age,
disability or sexual orientation.
> A comprehensive Purchasing Policy
links procurement to sustainability
considerations, such as implications
for local community development and
the safety, health and environmental
performance of the supplier.
The sustainability elements in these
codes and policies have been integrated
into PotashCorp's Commitment to
Sustainability. See the Commitment to
Sustainability chart above.
RISK MANAGEMENT
Risk management is an important
element of sustainability. A company
is only as sustainable as its ability
to withstand events that challenge
its prosperity.
PotashCorp has adopted a risk
management framework that identifies
potential events that could have
adverse effects. Risk events are
managed to provide reasonable
assurance they will not prevent the
company from achieving its goals
and objectives. Risks are assessed by
identifying, measuring and prioritizing
them, based on their estimated
likelihood and severity of loss.
PotashCorp has identified six major
categories of risks: market/business,
distribution, operational, financial/
information technology, regulatory and
integrity/empowerment. Together or
separately, these could threaten the
company's strategies and affect its ability
to take advantage of opportunities to
maximize stakeholder returns.
Management reports annually to the
board on the risks the company faces,
the risk response options and how risks
are being managed.
Each year, management re-evaluates
the risks identified in previous years as
well as the potential of new risks. It
then identifies the most significant new
or elevated risks to company strategy
resulting from changes in operations
or external factors.
See PotashCorp's risk mitigation response at
www. potashcorp. coml2005SR/governance.
EXTERNAL COMMITMENTS
Precautionary Approach
The company sees the key element
of the precautionary approach as
prevention rather than cure. It is more
cost-effective to act early to ensure that
irreversible environmental or social
damage does not occur. Products are
assessed for safety, health and
environmental hazards and risks prior
to marketing and distribution.
Governance 19
> New products are assessed for safety,
health and environmental hazards
and risks associated with normal use
and foreseeable misuse.
> All manufactured and rebranded
products are periodically reassessed,
including review of any adverse
effects experienced in handling.
> Up-to-date information on safety,
health and environmental risks
associated with the use, storage,
handling, transport and disposal
of products is available to the
workforce, customers and others.
Material Safety Data Sheets
(MSDS), labels and other
information are developed and issued
to handlers and users in accordance
with legislative, regulatory and
customer requirements, and as
information changes. MSDS are
updated on a formal, routine basis
to ensure they are current. These
documents are available on the
company's website.
PotashCorp is part of a fertilizer
industry task force addressing the illicit
use of anhydrous ammonia to make
methamphetamine.
In 2004, the company permanently
stopped producing agricultural-grade
ammonium nitrate due to risks of its
illegal conversion to an explosive
material.
Voluntary Standards
PotashCorp adheres to a variety of
voluntary codes.
> Its Lima and Augusta facilities are
ISO 9001 certified to quality
management standards because they
serve industrial customers.
> PotashCorp worked with The
Fertilizer Institute to establish a
Security Code of Management Practices
and adopted this risk-based approach
to identify, assess and address
security vulnerabilities.
> The Conference Board
> The Corporate Leadership Council
> National Association of Corporate
Directors (US)
> Institute of Corporate Directors
(Canada)
> American Society of Safety Engineers
> The Fertilizer Institute (US)
> Canadian Chamber of Commerce
> Canadian Fertilizer Institute
> Canadian Business for Social
Responsibility
> The Heartland Institute
> International Fertilizer Industry
Association
> Potash & Phosphate Institute
> International Feed Industry Federation
> Saskatchewan Potash Producers
Association
Source: PotashCorp
> Saskatchewan Mining Association
> New Brunswick Mining Association
> Point Lisas (Trinidad) Energy
Association
> Trinidad and Tobago Chamber of
Industry and Commerce
> Council for Sustainable Florida
> Florida Minerals and Chemical
Council
> Florida Audubon Society
> Louisiana Chemical Association
> Process Gas Consumers Group
> The Fluid Fertilizer Foundation
> Canadian Industrial Transportation
Association
> National Industrial Transportation
League (US)
> The Executives' Club of Chicago
> The company's Lima and Aurora
facilities are Occupational Safety and
Health Administration (OSHA)
Voluntary Protection Program (VPP)
Star Sites. Approval into OSHA's
VPP is the "official recognition of the
outstanding efforts of employers and
employees who have achieved
exemplary occupational safety and
health."
> All of the company's feed plants have
obtained certification under the Safe
Feed/Safe Food guidelines of the
American Feed Industry Association.
Memberships in Business and
Industry Associations
Through membership in industry and
lobbying associations, PotashCorp
actively supports political and public
policy advocacy efforts. See Membership
chart above.
STAKEHOLDER ENGAGEMENT
PotashCorp recognizes that stakeholder
engagement is a key performance
driver for the company and that it must
have the confidence of its employees,
customers, investors, suppliers and
communities to deliver long-term results.
Major Stakeholders
Major stakeholders are those essential
to a successful business, including
employees, customers, investors,
suppliers, regulators and communities
where PotashCorp operates.
Approaches to Consultation
One of PotashCorp's core values
is that it listens to all stakeholders,
through customer and investor surveys,
meetings with investors, employee
and union consultation, community
meetings, political engagement and
responds to critics.
20 Governanm
EXAMPLES OF DIALOGUE WITH
key stakeholders
These examples illustrate
company interaction with key
stakeholder groups and how
the information gleaned has
shaped corporate decisions.
Above: Employees of PotashCorp's Augusta, Georgia
nitrogen facility welcome their neighbors to tour the
plant during its 2005 Open House.
CUSTOMERS
PotashCorp surveys customers annually
to gauge their satisfaction with the
company at every point of contact and
compared with competitors. These
extensive surveys provide valuable
information on how to better meet
customer needs. The company has
responded in several ways.
> Customers expressed concern about
reliability of product supply.
PotashCorp responded with major
production expansions in potash,
nitrogen and purified phosphoric
acid; expansion of its hopper car
fleet to improve distribution
capabilities; and increased customer
communications to better understand
customers' current and future needs.
> The survey identified a desire for
more market information specific to
each key customer group. As a result,
the company increased the frequency
of its newsletters to these targeted
customer audiences and added a full
page of market-specific trends and
analysis. Customers are referred to
a larger Market Analysis Report
posted on PotashCorp's website.
> Given the importance of product
quality and service, one of
PotashCorp's ongoing goals is to
continually outperform competitors
in these two areas as measured by
customer surveys. The 2005 survey
showed that it outperformed the
industry average for quality and
service in all key product categories.
It also remained the preferred
supplier in all product categories:
fertilizer, feed, industrial nitrogen
and purified phosphates.
INVESTORS
The company engages with investors
through one-on-one meetings, analyst
conferences and conference calls. The
ongoing feedback is important in
decision-making. In 2005, PotashCorp
was very active with the investment
community. It hosted 122 one-on-one
meetings, gave 14 group presentations
(several of them webcast), and held
four conference calls to discuss results,
with an average of 145 participants per
call. Feedback is ongoing and is an
important factor in decision-making.
A broad range of issues was
discussed during these engagements.
Primary concerns included the impact
of planned expansions in global potash
supply; whether demand would be
affected by fertilizer price increases;
the impact of reduced potash imports
by Brazil; and how PotashCorp
planned to use its substantial cash
flow. Most were addressed directly in
meetings and presentations. In response
to concerns over global potash supply
expansions, the company hosted
an analyst meeting in Saskatoon
attended by 39 buy-side and sell-side
analysts/investors. The meeting also
included a tour of the Lanigan
potash mine.
The company assesses the opinions
of investors through an annual survey
of buy-side and sell-side analysts. In
2005, investors said they recognized the
value potential of PotashCorp's potash
operations, rating them as excellent and
far surpassing the value potential of its
nitrogen and phosphate operations.
This was supported by responses to
follow-up questions about the preferred
use of the company's cash flow.
Investors showed a clear preference
for spending in the potash business,
including bringing back capacity and
making selective acquisitions.
PotashCorp responded by sticking
to its Potash First strategy, which is
viewed as the key driver of future
growth. In 2005, $103 million was
invested to bring potash capacity into
production, $191 million in potash
opportunities offshore and 9.5 million
common shares were repurchased at a
cost of $851.9 million.
COMMUNITIES
PotashCorp interacts broadly with
its headquarters and production, site
communities, participating on
community advisory panels, hosting
meetings with neighbors and surveying
residents in host communities.
During 2005, PotashCorp
participated in or conducted nearly 60
community meetings. These promote
healthy dialogue and help the company
to better understand and respond to
stakeholder concerns. For example:
> In response to concerns about
excessive noise from the Aurora DFP
plant, a scrubber stack silencer was
installed in 2004. Surveys in 2005
confirmed that the silencer is
operating to the satisfaction of local
residents. Residents near Aurora
were also concerned about freight
trains that blocked a highway at the
entrance to the site. Discussions were
held with neighbors and meetings
conducted with the railroad to try
to alleviate the problem. A system
is now in place for affected residents
to report blockages that last for more
than 15 minutes.
> At the New Brunswick site, water
well problems are still being
experienced by some households in
Penobsquis. While an investigation
into the cause of the problems has
proved inconclusive, the company
has continued to provide drinking
water to those residents experiencing
problems. The provincial government
has installed water tanks in those
households and is delivering bulk
water. The company continues to
work on a water committee with
provincial and municipal government
representatives as they seek to develop
a regional water supply model.
Governance 21
> Community concerns in New
Brunswick related to the increase
in the number of trucks hauling
brine on a local highway and the
implications for highway safety. The
General Manager explained that a
program was underway to retrofit the
trucks with speed monitoring
systems and that braking systems and
other safety issues were monitored
through the truck maintenance
program. A contact person from the
site was assigned for follow-up on
these issues.

Our Saskatoon, Saskatchewan headquarters
hosts area children at its second annual fossil dig.
Fossil-rich earth from our Aurora, North Carolina
phosphate mining operation is shipped to
Saskatoon for the event.
22 G-nanm
Community concerns at PotashCorp's
Trinidad operations focused on the
need for a community emergency
notification system and on improving
job opportunities for local residents.
With respect to emergency
notification, the site provided
community representatives with
detailed information on existing
measures, the plan to conduct a
community risk assessment in 2006,
and plans to stage a full-scale
emergency management exercise
involving all community stakeholders.
The site also explained its approach
to local employment, which involves
targeting local people for full-time
and temporary job opportunities,
creating indirect job opportunities by
purchasing goods and services from
neighboring suppliers, and providing
on-the-job work experience for local
university students.
The 2005 community survey conducted
in Aurora revealed a strong base of
support for the site. On average,
90% of respondents provided positive
feedback on PotashCorp's economic,
employment and social performance.
Area residents view Aurora as
important to the local economy (970/6
of respondents), a strong community
supporter (89%) and a good employer
(85%). Subsequent community surveys
will take place in Augusta, Rocanville,
Trinidad, White Springs and Lanigan.
The company works hard to earn
and maintain these levels of community
support at all sites, recognizing that it
can be invaluable in obtaining permits
required for continued operations and
the expansion of facilities.
In 2005, site-specific sustainability
reports were initiated to give local
communities a more detailed picture
of what is occurring at nearby
PotashCorp facilities. The first was
issued late in 2005, and all operating
facilities will report directly to
their communities in 2006. These
reports include information on safety
and environmental performance,
community involvement initiatives and
spending with local business partners.
EMPLOYEES
PotashCorp surveys employees annually
to learn about issues important to this
key stakeholder group. In the 2005
survey, employees gave the company
high marks for conducting itself with
honesty and integrity, but said it
could do more to help them grow
professionally and advance in their
careers.
PotashCorp is responding to these
concerns by helping individual
employees achieve their personal career
goals. This effort is strongly supported
by a philosophy of promoting from
within. The majority of job openings
are first posted internally, enabling
qualified employees to advance within
the organization and transfer into
different functional disciplines or to
different locations. Feedback has been
very positive.
Further addressing employees'
concerns is a 2006 goal of "filling at
least 75% of senior staff openings with
internal candidates."
CRITICS
Modern agriculture's use of commercial
fertilizers is under pressure, primarily
due to environmental and safety
concerns. PotashCorp has responded
in several ways:
Our Chief Agronomist, Dr. Kim Polizotto, teaches a soil
science class at the Chicago Botanic Garden in
Northbrook, Illinois.
Governance 23
> Since some concerns are based on
misconceptions and inaccurate
information, it has programs to
educate the public and its critics on
the benefits and the facts (versus the
myths) about fertilizer. Engagement
vehicles include brochures, CDs,
website postings and support for
The Fertilizer Institute's Nutrients
for Life Foundation and its
educational component.
> PotashCorp recognizes that
environmental protection cannot
focus only on production processes,
but must cover the product life cycle.
Its sustainability initiatives are
responding accordingly. For example,
since excessive fertilizer use may
result in environmental harm, the
company educates users of its
products on proper application,
stressing the need to avoid using
more than is necessary.
> PotashCorp is supporting a new
Masters Degree program in Plant
Biology and Conservation, offered
jointly by Northwestern University
and the Chicago Botanic Garden,
with a three-year commitment to
fund a new position in Soil Science.
POLITICAL ENGAGEMENT
PotashCorp engages with elected
officials and regulators through
meetings; financial contributions
by a US subsidiary's Political Action
Committee (contributions limited
to the United States); and trade
associations.
In 2005, the company initiated
meetings with senior US congressional
staff and wrote to members of
Congress urging action on issues
of importance to PotashCorp.
These included:
> The need for Russia to adopt a
market-based pricing system for
its natural gas sales. Company
representatives also raised this in
a meeting with members of the
US Trade Representative's Office.
> Legislation that would lift a federal
ban on oil and gas drilling in most
US coastal waters, thereby providing
relief from scarce and high-cost oil
and natural gas supplies.
> Enlisting Senatorial support for the
Webb-Pomerene Act, whose possible
repeal is being reviewed by an
advisory committee, as the Act
enables US companies to be
competitive in export markets.
In Trinidad, senior management
participates in the Port Authority of
Trinidad and Tobago, the Regulated
Industries Commission and the Board
of Governors of the University of
Trinidad and Tobago.
Dennis Killebrew, Safety Specialist with PotashCorp's
White Springs, Florida facility, teaches community first
responders about safe handling of anhydrous ammonia
shipments in PotashCorp-leased tank cars.
PCS Trinidad is also a key member
of the Trinidad and Tobago Chamber
of Industry and Commerce, one of the
country's premier business organizations.
Through this important relationship, the
company participates in the development
of policies, rules, regulations and
legislation, including health, safety
and environmental legislation.
Professional public affairs staff at the
Aurora and White Springs phosphate
operations meet regularly with state
and local officials. They are actively
involved with regulatory, permitting
and environmental issues associated
with their respective production sites.
RELATIONS WITH
ABORIGINAL COMMUNITIES
In 2005, PotashCorp officials held
exploratory meetings with Aboriginal
communities and organizations in
Saskatchewan to discuss areas of
mutual interest.
> Company officials met with the
Kawacatoose First Nation to provide
information on opportunities with
PotashCorp as investors, employees
or suppliers.
> PotashCorp officials met with the
White Cap Dakota Nation to discuss
potential employment opportunities.
> A meeting in Saskatoon with
the Aboriginal Human Resource
Council of Canada addressed the
company's employment criteria
and requirements needed for the
skilled trades.
6 Economic
f
`.
``
¢,'
��_� \,
�t
N 'vm

Because of a PotashCorp policy to
purchase locally whenever possible, its
capital spending often greatly affects the
economies of its neighbors. In 2005, this
impact was magnified as PotashCorp
increased capital spending by 74%.
Case in point: A portion of the $385
million allocated to bring back capacity
at the Lanigan and Allan potash
operations is being spent in the small
Saskatchewan towns nearby. When the
two projects were announced in April
2005, community leaders and businesses
were immediately briefed on the
company's plans.
"We wanted the community to be
aware of the economic opportunities this
expansion represented, and how they
could best prosper as a result," said Mark
Fracchia, General Manager at Lanigan.
The town of Lanigan got right to
work, creating an information packet
for PotashCorp's engineering contractor
AMEC, said Mayor Bernie Bishop.
"We told AMEC how they could rely
on the town for a wide variet-• of their
the local trailer park even put in more
lots to accommodate demand," she said.
One project that brought a dozen
contractors to town for three weeks in
the spring of 2006 pumped an
estimated Cdn $100,000 into Allan's
economy, said Stewart Brown, General
Manager of the Allan plant. Workers
lived locally, established an account at
the local co-op store and bought some
Cdn $65,000 in fuel during their stay.
The expansion also proved to be a
boon for the economy of nearby
Saskatoon. As Brown put it, "We had
fabricators there working on everything
from structural steel for buildings to
ventilation shafts for the mines. We
contracted out jobs for electrical work,
motor repairs, pump overhauls and
gearbox fabricating. And if you went
to the union hall to find tradesmen,
you wouldn't find any because they
were already working either here at
Allan or over at Lanigan."
In addition, there was increased
demand for fuel lumber and haulin-
for capital improvements. But when
major improvements were planne
2005, a different tack was taken.
Using a "do-it-yourself" approa
Trinidad's staff did much of the ii
planning and engineering and
coordinated the entire project on a
day-to-day basis. Although specia
equipment and contractors had to
brought from offshore, many other
facets of construction were assign
to local mechanical, electrical and
engineering firms. That meant th;
foundations, pilings, cranes, forkli
scaffolding, insulation, structural
and a skilled workforce to assemb
everything were procured locally.
Managing Director Ian Welch,
the initiative to spend locally "crit
to the development of a sustainab
competitive edge for Trinidad's
emerging industrial sector."
As an example, Welch points to
the site's nearly $71 million in ca
spending affected one local supp
"l-alitech Machinin~ Services. Its
Economic 27
The Importance of
Economic Sustainability
Sustainable economic performance
and growth make it possible for
PotashCorp to generate long-term
value for all stakeholders - investors,
customers, employees, suppliers,
communities and host governments.
To be sustainable in a commodity
business, PotashCorp takes a long-term
view. This means managing natural
resources responsibly and maintaining
the respect and support of stakeholders.
Generating consistent, positive, long-
term financial returns ensures
sustainability objectives can be met.
The company also takes steps to
minimize the inherent volatility of its
businesses and position itself as the
leader in the products it sells and the
markets it serves.
In pursuing economic sustainability,
PotashCorp contributes to local,
regional and national prosperity
through taxes and royalties and by
providing ongoing direct and indirect
employment to employees and suppliers,
who in turn contribute to the tax base.
PotashCorp's
Growth Strategy
COMPETITIVE STRENGTHS
PotashCorp has an unmatched position
in potash, with 75% of the world's
excess capacity in this nutrient. The
company is uniquely positioned to meet
rising global potash demand by bringing
on this additional production in a timely
and cost-effective manner. Its large, low-
cost potash facilities in Canada are
complemented by strategic investments
in Jordan, Israel, Chile and China.
2005 Targets 2005 Results
• Achieved 4)Partially Achieved O Not Achieved
Goak To meet customer needs and expectations. w
1. Implement enterprise-wide customer • A new system, with automated tracking and
complaint system to facilitate tracking reporting, was developed and implemented.
and resolution.
2. Outperform competitors on quality • PotashCorp outperformed the industry average for
and service as measured by customer quality and service in all key product categories.
surveys.
3. Expand computer applications' e-mail • Customers and vendors now can receive automated
capabilities to improve communications order information by fax or e-mail.
with customers and vendors.
4. Provide quarterly reports on customer O In practice it has not been possible to generate -
feedback program to monitor customer timely and accurate information on a quarterly basis.
attitudes about quality and service. This information is obtained and reported on
annually.
Goak To meet the needs and expectations of our providers of capital.
1. Be at the top of our earnings • Earnings per share of $4.89 exceeded the initial
guidance range. guidance of $3.50 - $4.25 per share.
2. Continue to emphasize the company's • The company continued to reinvest in the Potash First
Potash First strategy. strategy in 2005, repurchasing 9% of its shares,
initiating a three-year, $400-million capital spending
program for potash production, and investing in other
companies around the world that enhance its
position in this key nutrient.
Goak To improve the socio-economic well-being of local communities.
1. Continue to seek viable opportunities • Efforts continue, as opportunities are identified. In
for more local sourcing at each site. 2005, a contract for arc flash protection for use in
the Potash division was awarded to Saskatchewan
Abilities Council, a local nonprofit employing people
with disabilities who manufacture this safety apparel.
2. Be engaged with community support • The company and its people were engaged at all
projects at each of our plants and locations with specific projects that improved host
offices. communities. Initiatives included volunteer efforts,
donations and relationship-building activities.
3. Achieve a 10% increase in individual • Individual participation increased by 15% and total
participation in the, matching gift donations rose by 58%.
program and a 20%o increase in total
donations.'
4. Initiate meetings with Aboriginal • Meetings took place with three different Aboriginal
representatives in Saskatchewan to groups in 2005.
address job opportunities and skill
requirements.
28 Economic
Neighbors of, PdtashCorp's Aurora'f2eilitj irr rural eastern 'North_Carfllina `
have ':a positive 'i'mage of our p>TOSphate operation, which,employs more, an
b ` I,Ot1D pei??ife; ? 1 r.
In Fehruaty 2005, an independent research firm Conducted telephone
rner w ?rnnre?limtQBarea?rartlants to g?uge,ourneihbors
perceptions of the facility V
Nimd'sf three-quaders pf the Yesp?onde7it Sai?,ihey were 'sbmewhat?attrrlrar
y' with aUr business A+rigr}g those;:anroven helmrng rnafontymewed`-tt10 Company
favoratrly primarri bec use itRrs a rnaJor`conlruurity:er?ployer Our;Aurbra ,:!:
f "g`pva&Grlity is rn•fat theI e te epl9YCrn:Seat?forGourlty??rth
Carah6, witlf ari.annOl payroo exceeding $60 ii illron.
"Th-6 research was invaluable beca,yse it, us how we are viewed , bV the:
public"saidRichatd Rfinpod Atirpra General Manager. 'Though-our;n6ighbors
y
respect us a5 ap"eeorioinnr corttributoi, not all of fhem.ar6 aware of other
significant ContributronS we make rri the community: This'ttells` us w6 need to'
work even harder on:oiit ou0each.effortsi' r
PoiasliCorp is '.'a ?rnajor contributorof specrmensjo the Aururu Fossil Museum and
hosfs?os,?d hunts (frThe`p,UM at its-Aurora Phosphate site.
47
The company also has strengths in
nitrogen and phosphate. Long-term,
lower-cost natural gas contracts in
Trinidad provide a competitive
advantage in serving the US nitrogen
market. In phosphate, superior-quality
rock gives the company greater ability
to produce higher-margin industrial
products, particularly purified
phosphoric acid.
STRATEGY
To provide stakeholders with superior
value, PotashCorp's strategy focuses
on generating long-term growth while
minimizing the natural volatility of its
business. The company focuses on its
highest-margin products, which
dictates its Potash First strategy. The
company focuses its capital - internally
to utilize excess capacity and also
through global investments - to
prepare for expected long-term growth
in the global demand for potash.
In addition, the company leverages
its strengths in nitrogen and phosphate,
focusing on products and locations with
the greatest gross margin potential and
least volatility.
ECONOMIC POLICY COMMITMENTS
PotashCorp's Code of Business Conduct
includes a number of policies that
define the company's commitment to
sustainable economic performance.
These state:
We will comply with the law, rules
and regulations in the countries and
communities in which we operate.
We will manage our financial
performance to maximize long-term
value for our shareholders through
the strategic investment of financial
and human resources.
We seek continuous improvement.
We are proactive, not passive -
regularly reviewing our practices to
ensure improvement.
Economic 29
Our Best Practices Program takes
production processes that are
successful at some PotashCorp
facilities and develops them as
company-wide Best Practices,
putting them to work throughout
all of our operations.
> We contribute to sustainable human
progress and the generation of
economic activity in the communities
where we operate.
> PotashCorp is committed to
supporting various local programs
and initiatives in the communities
where we work and live.
> We work to create mutual advantage
in all our relationships.
PotashCorp also has a comprehensive
Purchasing Policy that links procurement
to sustainability considerations.
These include implications for local
community development and the safety,
health and environmental performance
of the supplier.
MANAGEMENT RESPONSIBILITY
The CEO has the final management
accountability for PotashCorp's
economic performance. He or she is
responsible for:
> developing and recommending to
the Board of Directors a long-term
strategy and vision for the company
that leads to creation of shareholder
value
> developing and recommending to
the board annual business plans and
budgets that support long-term strategy
> consistently striving to achieve
financial and operating goals and
objectives.
At the production sites, the plant
General Manager is responsible for
implementing business practices and
identifying opportunities to advance
the company's production goals.
$ millions
2003 2004 2005
Net Sales* 2,465.8 2,901.4 3,475.6
Income from Financial Investments** 20.5 45.0 74.4
Proceeds from Sale of Assets*** - 103.3 12.4
Total 2,486.3 3,049.7 3,562.4
*See reconciliation and description of certain non-GAAP measures in Financial Performance Indicators in our 2005
Annual Report - Financial Review, pages 50 to 52. * *Income from financial investments includes our proportionate
share of earnings for investments accounted for on an equity basis, dividends received from investments accounted
for on a cost basis as well as interest income. * * *Proceeds from sale of assets includes disposal of property, plant
and equipment, and sale of long-term investments. Source: PotashCorp, based on G3 framework
MANAGEMENT SYSTEM
Key elements of PotashCorp's approach
to managing its economic performance
include:
Targets: PotashCorp establishes
corporate sustainability goals and
targets each year in both its Annual
and Sustainability Reports. Individual
production sites also set annual site-
specific key performance indicators
and targets.
Training: PotashCorp has long-
standing training initiatives to ensure
that its workforce has the required
skills to competently perform its tasks
in a safe, healthy and environmentally
sound manner. New or transferred
employees, contractors and other
visiting personnel undergo appropriate
site orientation/induction training.
Best Practices: The company's Best
Practices Program takes initiatives that
are successful at some PotashCorp
facilities and develops them as
company-wide best practices.
Performance Monitoring and Review:
PotashCorp has ongoing processes for
performance monitoring and review.
GOALS AND PERFORMANCE
PotashCorp sets long-term economic
goals and annual targets. The Goals
and Performance chart on page 27
illustrates that in almost all cases
the economic targets set for 2005
were achieved.
PotashCorp's Economic
Performance
This section describes PotashCorp's
economic impacts on its customers,
employees, suppliers, providers of
capital, host governments and
communities. It also addresses the
company's economic impacts on local
labor markets through its wages, hiring
and local purchasing policies. A brief
discussion of indirect economic impacts
is included.
Additional information about the
company's economic and financial
performance can be found in the 2005
Annual Report.
ECONOMIC VALUE GENERATED
In 2005, PotashCorp generated
economic value of $3.6 billion, up
from $3.1 billion the prior year. Net
sales accounted for almost all of the
economic value generated by the
company. See chart at top.
30 Economic
SALES
Fertilizers are sold primarily for spring
and fall application in both northern
and southern hemispheres. Potash,
phosphate and nitrogen are also used as
inputs for producers of animal feed and
industrial products. Feed and industrial
sales are more evenly distributed
throughout the year than fertilizer
sales and are primarily by contract.
PotashCorp's net sales were $3.5
billion in 2005, an increase of 67%
since 2001. The growth is the result of
increased production of potash and
phosphates and higher prices for potash
and nitrogen products. See chart at right.
In 2005, nitrogen products accounted
for the largest share of company net
sales (37%), followed by potash (34%)
and phosphate (29%). However, potash
continues to generate the bulk of gross
margin. Over the past five years, potash
represented on average 29% of net sales
and produced 62% of gross margin.
Phosphate and nitrogen together
generated 71% of net sales and 38% of
gross margin.
ECONOMIC VALUE DISTRIBUTED
The economic value distributed by
PotashCorp was over $3.0 billion. The
bulk of this was accounted for by the
cost of goods and services purchased
($2.2 billion), employee wages and
benefits (8423.8 million) and taxes to
governments ($338.1 million). See chart
at right.
GOODS AND SERVICES PURCHASED
The total value of goods, materials and
services purchased for operating
activities was just over $2.2 billion.
See chart at right.
Production feedstocks such as natural
gas and sulfur account for the major part
of PotashCorp's annual procurement.
$ millions
_ 2001 2002 2003 2004 2005 `
Potash 531.8 544.5 619.1 894.8 1,176.9
Nitrogen 895.4 747.4 1,064.8 1,130.0 1,279.4
Phosphate 653.6 636.8 781.9 876.6 1,019.3
Total 2,080.8 1,928.7 2,465.8 2,901.4 3,475.6
*See reconciliation and description of certain non-GAAP measures in Financial Performance Indicators in our 2005
Annual Report-Financial Review, pages 50 to 52. Source: PotashCorp .
$ millions
2003 200
4 2005
Operating Costs: payments for materials, 1,602.0 _
_'__
1,712.8 ___
2,215.6
product components, facilities and
services purchased
Employee Wages and Benefits 352.1 386.7 423.8
Payments to Providers of Capital: 143.6 140.1 160.8
dividends and interest payments _ _
?
Payments to Governments 1.15.8 172.5 338.1
Community Donations and 1.7 1.9 3.0
Investments, Political Contributions
-
Total - - -
2,215.2
2,414.0
3,141.3
Source: PotashCorp, based on G3 framework
$millions
2001 ^ 2002
2003
2003
2004
2005
Potash 182.3 214.1 __
__
277.8 292.8 431.0
Nitrogen 681.3 562.1 724.5 763.4 934.3
Phosphate 358.8 358.8 563.9 608.5 799.4
Corporate 40.6 28.9 35.8 48.1 50.9
Total 1,263.0 1,163.9 1,602.0 1,712.8 2,215.6
Toes not include capitalized items Source: PotashCorp
$ millions
2002___ ___ 2003 _ 2004 _ 2005
Total Salaries 234.1 237.4 290.6 299.0-?
Benefits 94.3 114.7 96.1 124.8
Total Payroil 328.4 352.1 386.7 423.8
Source: PotashCorp ,,
Economic 31
Other major goods, services and
materials purchased include freight,
electricity, materials for maintenance and
repair, and contract services.
PAYROLL
PotashCorp has employees in the US,
Canada, Trinidad and Brazil. Many
of its facilities are located in small
towns where the company is a
dominant employer.
In 2005, PotashCorp's total payroll
(including benefits) for its worldwide
regular workforce was $423.8 million.
See chart on previous page.
Payments to contract employees
totaled $82.5 million in 2005.
DISTRIBUTIONS TO
PROVIDERS OF CAPITAL
In 2005, PotashCorp incurred $88.4
million in interest on its long-term
debt. Dividend payments were $65.4
million. See chart at right.
SHAREHOLDERS
Shareholders have benefited greatly
from long-term stock price appreciation.
Since 1989, PotashCorp has
delivered total shareholder return of
1,055%, more than triple the sector
average of 346%.
In 2005, PotashCorp repurchased
9.5 million common shares, nearly
9% of the company, for $851.9 million.
DEBTHOLDERS
PotashCorp incurred $95.4 million of
interest expense on all debt in 2005.
Interest on long-term debt was $88.4
million, while interest on short-term
debt was $7.0 million. See Distributions
to Debtholders chart at right.
$ millions
2003
- 2004 2005
Interest Paid 98.2 112.1 125.5
Dividends Paid 52.3 56.1 65.4
Total f50.5 168.2 190.9
Source: PotashCorp
$' millions
2003 2004 2005
Interest Expense on Short Term Debt 5.1 3.4 7.0
Interest Expense on Long Term Debt 88.7 86.5 88.4
Total 93.8 89.9 95.4
Source: PotashCorp
COMMJJN?ICATIONS KEY
Because our customers' depend'on could affect the delivery of their,product:' -
our products to help feed the world, (Eckl retired from PotashCorp in June 2006
PotashCorp-acted quickly when rail and -after a distinguished 30-year earner wifh:the
shipping transportation around New Orleans company.)
and the entrance to the-Mississippi River came
"Transportation and:-Distnb,ution`kept us
to a halt following Huriicane Katrina.
informed right from the start" said Debbie
"Katrina's wrath caused numerous marine , Hetzel, Customer Service Team Leader. "We had
vessels to be'divertet(, said CyrilEckl, former information on howour shipments were
Vice President,Transpdrtation and Distribution impacted and status memos from the

r
.?",PP,oiasb?r4 Had ; - ? ? „r ??

* ? ,a s }?Iatl m??o
1 tD
a
warehouses s pp rig ml p?oc3iictlon. "qtt tt0" s'when they Called.
answer Ctast inn
facilities and alte'rngt rail lines tq.minimizo, yV.? workeq hard tp,put our customer' _
disruptionsr" communications system into `action; and it
performed just as we anflcipated it would:
The xestrl>?_.ugC1r13a,ferlizer.,produGt
shipments wV re"briefly delayed; PotashCorp's " "This natural di&JSi&'shOw6 US just how.
Customer Service Department did not field a important if is to know exactly where all our
single customer complaint: product is;',and thatfhe communication chain
never breaks" Fc+ l said. °Our`managers of the
'.'A significant key to our success in serving
customers duriri this difficult, Weriod Was.open
P?.... rail fleet ?Op manna operatiops here in cpnstant
,'
oTl ntem )j
tf
-2nd
`
conta
eiJ urin
t
'lever
communications; emphasized Eckl. "We'1kept y
;
g
i
.
c
,
y

uctshiprnants
u tourers informed about.proo
h
a
y
t
d
n
b
*

externally knew what Was gortgsoh
ution;dlans aho
n
t
ing.,tfta
lter
at?
'c?r i -
:;
,
,

32 Economic
-16i I D- T A Tic

a

PotashCorp customer The Andersons helped
the Schuerman cousins learn the ropes on
taking over their family farms in Northwest
Ohio after both their fathers died within
months of each other. Above from left are
Dean, Eric, Kent and John Schuerman.
At left, Pennsylvania farmer Micha Meyer, left,
consults with Willard Agri-Service's Dave White
about applying fertilizer to the corn crop. Sri'
d
Economic 33
SHAREHOLDERS' EQUITY
Shareholders' equity at the end of
2005 was $2.1 billion. This was
impacted in 2005 by the authorization
and completion of PotashCorp's share
repurchase program at a cost of $851.9
million. The repurchase resulted in
reductions of share capital, contributed
surplus and retained earnings of $125.1
million, $264.3 million and $462.5
million, respectively.
Net income of $542.9 million less
$462.5 million due to common share
repurchases and dividends declared of
$65.0 million resulted in a net change
in retained earnings of $15.4 million.
TOTAL TAXES
PotashCorp's taxes in 2005 were
$338.1 million. Canadian taxes, which
consisted of the potash profits tax,
surtax and base payments tax, totaled
$134.3 million.
See details of PotashCorp's taxes since 2002
at www.potashcorp.coml2005SR/economic.
COMMUNITY DONATIONS
In 2005, PotashCorp contributed
84 million in cash and non-cash
donations to its host communities and
other worthy causes. Charitable cash
donations totaled $3.25 million and
non-cash donations were $757,000.
Company employees contributed an
additional $483,000 to charitable
organizations, the most significant
being the United Way. See chart
at right.
More information on the community
and charitable contributions by
PotashCorp and its employees can
be found in the Social Performance
section on page 49 and the Site
Performance section on page 66.
ECONOMIC VALUE RETAINED
The economic value retained by the
company is the difference between the
economic value generated and the
economic value distributed. In 2005
this amounted to $423.5 million, a
decrease from the $638.6 million in
2004. See chart below.
FINANCIAL IMPLICATIONS
OF CLIMATE CHANGE
PotashCorp has been involved in
climate change initiatives over the past
decade. For example:
> All potash operations in Canada
were voluntary participants in the
Canadian Industry Plan for Energy
Conservation for a number of years.
Between 2001 and 2005, potash
operations improved their energy
efficiency by 24%.
> PotashCorp's Enterprise Risk
Management Committee is
addressing risks and opportunities
for the company associated with
climate change.
POTASHCORP'S PENSION PLANS
PotashCorp sponsors plans that provide
pensions and other retirement benefits
for most of its employees. A properly
funded pension plan helps attract and
retain a dedicated workforce and
supports long-term financial planning
and stability for the organization. See
chart on next page.
Due to the long-term nature of
these plans, the calculation of
expenses and obligations depends on
various assumptions such as discount
rates, expected rates of return on
assets, projected salary increases,
$ millions
Corporate Charitable Cash Donations
Corporate Charitable Non-Cash Donations
Charitable Donations by Employees
Matched by the Company
Total
Source: PotashCorp
2002 2003 2004 -2005
1.00 1.10 1.70 3.25
0.70 0.60 1.30 0.75
0.32 0.36 0.42 0.48
2.02 2.06 3.42 4.48

$ millions
2003 2004 2005
Economic Value Generated 2,492.0 3,052.6 3,564.8
Economic Value Distributed 2,215.2 2,414.0 3,141.3
Economic Value Retained 276.8 638.6 423.5
Source: PotashCorp, based on G3 framework
O Economic
share best practices and showcase our operations;" said Stroman.
Pp?ashForp'?,?tg? to Gi?grgi? nrtrogz? fgcrpty,;,.
w
Jurisdiction Plan Coverage
Canada Substantially all employees of the company are participants in either
a defined contribution or a defined benefit pension plan.
United States The company has defined benefit pension plans that cover a
substantial majority of its employees. Contributions to the US plans
are made to meet or exceed minimum funding requirements of the
Employee Retirement Income Security Act of 1974 ("ERISA").
Trinidad The company has contributory defined benefit pension plans that
cover a substantial majority of its employees.
Brazil The company and employees participate in a government-sponsored
plan.
Source; PotashCorp
retirement age, mortality and
termination rates. These assumptions
are determined by management and
reviewed annually by the company's
actuaries. PotashCorp's Employee
Benefits Committee has oversight
responsibility for the company's
pension plans. See chart on nextpage.
The investment portfolio contains a
diversified blend of equity and fixed
income investments. Other assets such
as private equity, real estate and hedge
funds are not used at this time.
See details of PotashCorp's
pension plans at
www.potashcorp. coml2005SR/economic.
FINANCIAL ASSISTANCE
FROM GOVERNMENTS
r
aky r?4Ji
VY `?/g
4 i?Fl
L
? Y1. i
?yll
i
October 2005 ,were
oprovempnts. The
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PotashCorp received no subsidies or
financial assistance from governments at
any of its operations or locations in 2005.
Economic 35
POTASHCORP'S MARKET IMPACTS
PotashCorp has an economic impact on
local labor markets through its wages,
hiring and local purchasing policies.
WAGES
In all jurisdictions where it has
operations, PotashCorp's entry level
wages are much higher than the local
minimum wage and in many cases may
be as much as three times the local
minimum wage. The company
recognizes that offering wages above
the minimum is an important factor
in attracting and retaining the best
employees and in building strong
community support. See chart at right.
LOCAL SPENDING
PotashCorp recognizes the value of
local purchasing. By supporting local
businesses in the supply chain, the
company benefits from new sources of
supply, improves the stability of local
economies and helps attract additional
investment to the area. All these factors
can contribute to improved community
support for its operations.
Under its company-wide Purchasing
Policy, in addition to price and quality,
PotashCorp's purchasing managers
must give consideration to the potential
contribution to the local economy and
to accessibility. Each production site
has developed its own procedures to
implement this policy. See chart at right.
PotashCorp started to measure the
percentage of local purchasing across its
operations in 2002. Excluding raw
materials, electricity and transportation,
company estimates show that between
52% and 62% of remaining purchases
are made locally.
Dec 31, 2005
Benefit Obligations $595.3 million
Plan Assets $480.8 million
Source: PotashCorp
2005
us* Canada" Trinidad * Brazil ***
PotashCorp's Entry Level Wage 8.56-17.10 18.95-23.05 4.14 700
Local Minimum Wage 5.15-6.50 6.30-7.05 1.44 350
% Entry/Local 166%-325% 280%-326% 287% 200%
VS dollars/hour Source: PotashCorp
**Canadian dollars/hour
-Reals/month (2006 data)
2002 2003 2004 2005
%ofTotal Purchases 55% 52% 60% 62%
Made Locally*
*Excluding raw materials, electricity and transportation. Source: PotashCorp
LOCAL HIRING
It is common practice at PotashCorp to
hire local residents at its operations.
Accordingly, the majority of the
company's employees reside in and
around its host communities.
INDIRECT ECONOMIC IMPACTS
Public Benefits from Operations
PotashCorp's capital contribution to
local economies extends beyond the
direct impact of its investments in its
own operations and local purchasing.
As the often-dominant employer in
an area, it can affect the local economy
through its impacts on educational and
medical facilities, social and sports
centers, utilities and other important
elements of community life.
Indirect Economic Impacts
Indirect impacts describe the effect of a
company's operations and investments
on the economic activities and
performance of others. For example,
salaries and supplier income spent
locally or paid as tax multiply through
the community and induce more
economic activity, job creation and
wealth creation.
PotashCorp is not yet able to present
information on its indirect impacts,
beyond noting that, as a major
contributor to world food production,
such impacts are considerable.
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-401
SOCIAL
PERFORMANCE
SAFETY DRILLS PAY OFF DURING THE ULTIMATE TEST:
rescuing 72 miners
TRAPPED UNDERGROUND BY FIRE
It took place on January 23, 2006 when
72 miners were trapped underground by
a fire in a competitor's potash mine in
Esterhazy, Saskatchewan. Within
minutes, PotashCorp dispatched a
response team from its nearby
Rocanville plant. That team was one of
the first on the scene, and some members
participated on the first team to enter
the mine where, after 24 hours, all 72
trapped men were successfully rescued.
"We're very proud of our mine rescue
safety efforts," said Garth Moore,
President, PCS Potash. "At each of our
mines you'll find more than 20 well-
trained rescue personnel. In addition,
employees at every mining site have
safety ingrained into their work habits."
Stephen Fortney, Rocanville's
General Manager, details the safety
efforts at his operation. "We have
three complete crews of mine rescue
personnel here, one of which is always
ready to go at a moment's notice. All of
the rescue team members are required
to undergo a minimum of 40 hours
of safety training a year, but in reality,
they average 110 hours. A lot of this
occurs through rescue competitions we
conduct on site each year. We pit our
different teams against each other and
get the entire plant involved in rescue
drills. It's a terrific learning experience
for everyone."
PotashCorp workers have won a
variety of the top industry safety
competitions for several years in a row.
In addition to personnel training,
Fortney said that PotashCorp ensures
safe work conditions that include
a steady supply of fresh air, proper
exhaust systems, keeping areas well
lit and maintained, and constant
monitoring of surface ground and
underground rock for movement.
The latter can be dangerous to
workers. In 2005, a worker at
PotashCorp's Lanigan potash mine
was killed when a clay deposit in the
mine roof fell on top of him.
Said Moore, "At thousands of feet
below ground level, potash rock is
slowly flowing, ever changing position.
But by monitoring this movement, we
can safely design the way we will mine
the ore and the way we will structure
the rooms."
The "rooms" he refers to are vast
corridors from which potash is mined.
Cut into the rock and supported by
pillars of uncut rock, they can be as large
as 65 feet wide with ceilings up to 17
feet high. "Under 3,000 psi of pressure,
after about 60 or 70 years, these rooms
will close right up due to the moving
nature of potash," says Moore. "With our
monitoring instrumentation, however, we
can watch to make sure seams do not
separate and lead to the weakening of a
mining room roof."
The Esterhazy accident was caused
by plastic piping catching fire, but fires
in potash mines are generally much
different than those in coal mines.
In particular, coal mines contain
methane and coal dust which can
explode and burn, generating large
amounts of smoke. Potash is a salt and
does not burn or smoke. Nevertheless,
all PotashCorp potash mines have
safe rooms to provide escape.
"Safe rooms are cut and sealed at both
ends, with a double door that works like
an airlock," said Fortney. "Our eight safe
rooms vary in size from about 6,000
cubic feet to over 88,000 cubic feet. The
largest of these rooms can hold up to 70
workers, even though we only work a
maximum of 60 at peak times." Stocked
with water, canned food and having basic
bathroom facilities, each room is designed
to help miners survive a minimum of 35
hours, Fortney said, but could probably
sustain life for up to a week.
If there is a fire or problem, flashing
beacons tell miners to get to a safe
room. As a redundant emergency signal,
all conveyor belts throughout a mine
will shut down. When this happens,
miners know they are supposed to call
for instructions on what to do next.
All of which has produced not only
one of the best company safety records
in the mining industry, but the most
rewarding safety performance of all.
"PotashCorp workers have led the
way in mine safety competitions for
several years now," Moore said. "But
on January 23 they turned in their best
performance yet when they assisted
in rescuing those 72 men."
Social 39
The Strategic
Importance of Social
Sustainability
Social sustainability is a PotashCorp
priority because a strong commitment
to society helps build stakeholder trust.
More participation and dialogue with
those it affects and who affect it
cement long-term relationships that
enhance the company's reputation.
Relationships with key stakeholders
- the communities where it does
business, its investors, customers,
employees and suppliers - are
important, not just economically, but
because they help guide PotashCorp's
values and principles and make it
accountable.
Strong social performance helps
attract and retain a productive workforce,
build strong, efficient operations and
earn the respect and goodwill of internal
and external stakeholders.
Overview of Key
Social Policies
Most of the policies governing
PotashCorp's social performance are
embedded in its Statement of Core Values
and Code of Business Conduct. Other
social policy commitments are found in
its SHE Policy, Employee Handbooks,
Code of Customer Commitment and
Respect in the Workplace Policy.
MANAGEMENT RESPONSIBILITY
FOR SOCIAL ISSUES
The senior PotashCorp executives with
greatest responsibility for social issues
are the COO, Senior Vice President
of Administration and the General
Counsel. The table to the right sets out
their areas of responsibility in the social
field, and those of other senior managers.

Labor Policies and PotashCorp is committed to a healthy and safe work environment
Decent Work for all employees and contractors.
> It will provide training to assist employees in performing to potential
in their current jobs or prepare them for higher level assignments.
> The company respects workers' rights to enter into collective
bargaining relationships.
> It is committed to the principles of equal employment opportunity.
Human Rights > PotashCorp is committed to respect the rights of the individual
wherever it does business.
> It will not tolerate any form of discrimination or harassment directed
at any individual or group.
Product Responsibility > PotashCorp will assess, manage and communicate any hazards
associated with its products.
Customers > The company is committed to satisfying its customers.
> It will maintain the confidentiality of information entrusted to it
by its customers.
Societal Responsibility; > PotashCorp must never act in contravention of antitrust or
competition laws in any of the jurisdictions in which it does business.
> It will never offer, pay, solicit or accept bribes in any form, directly
or indirectly.
> The company believes it is important to participate in business
discussions and public policy debates.
----------- - - -
Community
> PotashCorp is committed to supporting the communities where its
employees live, to working through local programs and initiatives
and to the generation of economic activity.
Social Area Executive Responsible
Employee Relations C00; Senior Vice President, Administration
Labor-Management Relations C00; Senior Vice President, Administration
Training and Education C00; Senior Vice President, Administration;
Plant General Managers _
Human Rights C00; General Counsel; Senior Vice President, Administration;
Vice' President, Internal Audit _
Occupational Health and Safety C00; Vice President, Safety, Health and Environment (SHE);
Plant General Managers _
Community Development C00; Plant General Managers; Donations Committee
Competition/Antitrust General Counsel
Political CEO; Senior Vice President, Corporate Relations;
Senior Vice President, Administration
Corruption General Counsel _
Customer Health and Safety President, PCs Sales ^^ __
_
Product Safety y
Customer Satisfaction President, PCs Sales;
Vice President, Safety, Health and Environment (SHE)
President, PCs Sales _
Customer Privacy President, PCs Sales; General' Counsel
40 Social
2005 Targets 2005 Results
Achieved O Partially Achieved O NotAchieved
Goal- To have motivated and productive employees committed to our long-term goals.
1. Integrate key corporate performance 0 This is still in progress. Key performance indicators
metrics into regular` employee are being used in more departmental and individual
reviews, providing managers with goal-setting and performance discussions. Changes
greater discretion to reward to compensation and incentive pay have been
individual achievement. implemented to allow flexibility in rewarding excellent
performance. -
2. Proactively improve orientation 4) A framework for employee orientation, including a
programs for new employees and handbook for new employees, is being developed. In
career development processes for addition, the process for cross-border transfers and
existing employees. expatriate assignments was improved to facilitate
new opportunities for current employees.
3. Complete implementation of a human 0 Full implementation has been completed in the
resources administration system United States, while final extension into Canada
enabled by information technology. is on hold:
4. Maintain personnel turnover O Turnover in Trinidad increased by 1.3% as PotashCorp
improvements achieved in 2004 employees were recruited by other companies in a
in Trinidad. rapidly developing chemical sector.
Goak To move closer to our goal of no harm to people, no accidents.
1. Reduce recordable and lost-time O Recordable and lost-time injury rates increased
injury frequency rates by 10%. 29.5% and 53.8%, respectively, from the record low
levels of 2004.
2. Establish a Senior Management • A Senior Safety Leadership Team was established
Safety Leadership Team. and is actively pursuing improved safety
performance.
_
Goak To improve the socio-economic well-being of our communities
1. Be in the top quartile of responses • A survey conducted in Aurora showed that people
in a survey of community leaders. view PotashCorp as important to the local economy
- (97%), a strong community supporter (89%) and a
good employer (85%).
2. Be engaged with community • Our company and our people at all of our facilities
support projects at each of our were engaged in efforts to improve our communities.
plants and offices.
3. Achieve a 10% increase in • Individual participation increased by 15% and total
individual participation in the donations by 58%.
matching gift program and a
20% increase in total donations.
4. Formalize corporate-donations O This is in progress and will be completed in 2006.
guidelines with a written policy and
post it on the company's website.
Goal- To promote sustainability through the supply chain process.
1. Begin engaging major suppliers 0 Partially completed with 370 "key vendors" identified.
regarding their human rights policies Documentation on human rights policies requested
by requesting a description or copy from all of these companies; 80% have provided this
of their Code of Conduct or human information.
rights performance indicators.
GOALS AND PERFORMANCE
PotashCorp sets annual targets for
its sustainability performance. The
table at left sets out 2005 targets for
social performance and the results
achieved.
See a list of awards we've received
for community involvement at
' www.potashcorp.coml2005SR/social.
Labor Practices and
Decent Work
LABOR POLICIES
PotashCorp will always respect the
labor laws of each country in which it
operates. It has adopted several key
policy commitments regarding labor
practices and decent work.
Labor-Management Relations
Consistent with its commitment in its
Code of Business Conduct to respect the
rights of the individual, PotashCorp
acknowledges and respects workers'
rights to enter into collective
bargaining relationships.
Workplace Health and Safety
The Code states that PotashCorp is
committed to a healthy and safe work
environment for all employees and
contractors. Its goal is "No harm to
people and no accidents."
Training and Education
According to its Employee Handbook,
PotashCorp will provide training to
assist employees in performing to
potential in their current jobs, or to
prepare them for identified higher-level
assignments; all employees will be given
an equal opportunity to participate in
training and education programs
supported by the company; and tuition
may be reimbursed for employees who
pursue academic studies in addition to
performing their normal work.
Social 41
Equal Opportunity
The Employee Handbook states that,
under its commitment to the principles
of equal employment opportunity,
PotashCorp will continue to recruit,
hire, train, assign, promote, transfer,
place, demote, lay off, recall, terminate,
grant leaves of absence and administer
all compensation and benefits programs
without regard to race, color, religion,
sex, national origin, age, disability,
veteran status or any other protected
characteristics as defined by law.
MANAGEMENT RESPONSIBILITY
The Senior Vice President of
Administration has operational
responsibility for company-wide
employment, labor management and
training and development areas.
The Vice President of Safety, Health
and Environment has responsibility for
the company's occupational health and
safety system. The COO heads a
recently established Senior Safety
Leadership Team comprised of six
senior managers. The team's objective
is to provide leadership that will foster
a culture to reduce exposure and
eliminate risk in the workplace.
MANAGEMENT SYSTEMS
PotashCorp uses a variety of
management processes to ensure that
its employment and workplace safety
commitments are implemented
effectively.
Occupational Health and Safety
The management approach to
occupational health and safety includes:
> Training - offered annually (or
more often, if required) on process
hazards, health and safety, emergency
procedures and safe work practices,
with refresher training at least
annually.
2005
Employees % of Total
Managers 846 17.3
Professionals 388 8.0
Technicians 400 8.2
Sales Workers 64 1.3
Office and Clerical 242 5.0
Skilled Craft Workers 1,475 30.2
Semi-Skilled Workers 1,382 28.3
Laborers 73 1.5
Service 9 0.2
Total 4,879 100.0
Source: PotashCorp
> Hazard control strategies give
priority to control at or near the
source through elimination,
substitution, isolation and/or
effective local ventilation.
> Health and safety (including
ergonomic considerations) are part
of PotashCorp's criteria for selecting
materials, tools and equipment for
purchase.
> The targeted time period for
resolving issues identified in
workplace inspections and accident
investigations varies. Some action
is taken immediately. In all cases,
corrective action is taken within
one year.
> Periodic health and safety audits are
performed to validate effectiveness.
Accident Prevention
PotashCorp uses a disciplined safety
system that is based on best practices
and the Behavioral Accident
Prevention Process (BAPP®).
The company ensures that all
employees and contractors are well-
informed, well-trained, engaged and
committed to its safety and health
improvement processes.
It recently created a high-level team
focused on prevention of accidents
among employees and contractors.
This Senior Safety Leadership Team is
shifting attention from traditional
safety measures, such as the frequency
of lost-time injuries or recordable
accidents, to reducing exposure of risky
behaviors that cause accidents.
Each facility creates an annual Safety
Action Plan to address measurable
performance in behavior-based safety,
key procedures, contractor safety and
organizational culture.
PERFORMANCE
Workforce Characteristics
PotashCorp had 4,879 full-time regular
employees at the end of 2005, plus 772
contract employees.
The workforce is located mainly in
the United States, Canada, Trinidad
and Brazil. Seepage 11 in PotasbCorp's
Organizational Profile for country
breakdown.
Most PotashCorp employees are
hourly. See chart above for a breakdown
of the company's total workforce by
employment category.
42 Social
2002 2003 2004 2005
Average Employee Turnover <5% 5.9% - 7.7% 8.4%
Source: PotashCorp
Type of Benefit Is this benefit standard Is this benefit provided
for the majority of to temporary or
full-time` employees? part-time' employees?
Canada United States Canada United States
Life Insurance Yes Yes Yes No
Health Care Yes Yes Yes No
Disability Yes Yes No No
Maternity/ Paternity Leave Yes Yes No No
Pension Plan Yes Yes No No
Savings Plan Yes Yes No No
Stock Ownership Yes Yes No No
AD&D Insurance Yes Yes Yes No
Short Term Incentive Plan Yes Yes No No
Source: PotashCorp
2001 2002 2003 2004 2005
Union Members 1,412 1,621 1,639 1,664 1,729 ;
Total Regular Employees 4,997 5,199 4,904 4,906 4,879
Unionization as % of 28% 31% 33% 34% 35% ,
Total Regular Employees
Source: PotashCorp
per 200,000 work hours
_ 2001 2002 2003 2004 2005
Lost-Time Injury Frequency Rate 0.36 0.37 0.28 0.26 0.38
Recordable Injury Frequency Rate 3.26 2.68 2.21 1.93 2.50
Source: PotashCorp
Employee Turnover
Employee turnover across all
PotashCorp operations averaged 8.4%
in 2005. It is not tracked by gender or
age group. See chart at left.
Employee Benefits
PotashCorp provides a full range of
benefits to its full-time workforce in
the United States and Canada,
including life insurance, health care,
disability coverage, maternity/paternity
leave, pension plans, savings plan,
short-term incentive plan and
Accidental Death and Dismemberment
(AD&D) insurance. Temporary or
part-time employees in Canada (but
not in the United States) qualify for life
insurance, health care and AD&D
insurance. See chart at left.
Unionization
PotashCorp had 1,729 union members
in its workforce in 2005, 35% of its
regular employees. See chart at left.
just over half of all union members
work in Canada (55%), followed by the
United States (40%) and Brazil (5%).
Notification Provisions
In Canada, collective bargaining
agreements and provincial labor
legislation require one to eight weeks'
minimum notice for layoffs, usually
depending on the employee's length
of employment. In the United States,
the notice period depends on the
circumstances but ranges from two
to eight weeks.
Under specific circumstances
involving a significant change in the
employer's operation of the business,
"technological change" legislation and
Social 43
collective agreement language may
require more extensive notice periods
and may require the parties to negotiate.
Prior to temporary layoffs,
PotashCorp advises employees and/or
their elected representatives. However,
terms and conditions for layoffs remain
as previously negotiated and/or as
defined by company policy.
Joint Health and Safety Committees
Over 30% of the workforce is
represented in formal joint management-
worker health and safety committees,
which typically operate at the facility level.
WORKPLACE HEALTH AND SAFETY
Injury Rates
After falling to record lows in 2004,
PotashCorp's recordable and lost-time
injury rates increased in 2005. The
company responded by revitalizing its
safety efforts. A Senior Safety
Leadership Team was established to
foster a safety culture throughout
PotashCorp that eliminates behaviors
and conditions that cause accidents.
See chart on previous page.
Recording and Reporting
Accident Statistics
PotashCorp's SHE management
system prescribes a specific, timely
reporting requirement for SHE events.
It complies substantially with the
International Labor Organization's
Code of Practice on Recording and
Notification of Occupational Accidents
and Diseases. It also follows reporting
and notification requirements in the
countries where it operates: the United
States, Canada, Trinidad and Brazil.
Absenteeism
Absenteeism rates held steady at the
potash and nitrogen divisions. The
phosphate division posted an increase.
See chart at right.
% hours absent
Division 2003 __ 2004 2005
Potash 4.7 5.1 4.7
'Nitrogen 3.2 2.8 2.8
Phosphate 2.5 2.3 4.2
Source: PotashCorp
2005
Country Number of Employees Total Disbursements ($)
Assisted
Canada 36 $16,884
United States 11 $39,004
Trinidad 58 $42,881
Brazil 11 $7,332
Total 116 $106,101
Source: PotashCorp
Fatalities
PotashCorp experienced one fatality
in 2005. The incident occurred at the
Lanigan potash mine in Saskatchewan.
HI VI-41D S
The Trinidad operation has introduced
a comprehensive HIV/AIDS program
that provides education and training,
counseling, prevention and risk control,
and treatment for workers with
HIV/AIDS.
TRAINING AND DEVELOPMENT
Training
In 2005, employees at PotashCorp's
operating sites each received an average
of 52 hours of training. Areas of
training were primarily:
> Training to improve job skills (38%
of training hours provided)
> Safety training (19%)
> Apprenticeship training (11%)
> Crisis and emergency response
training (11%).
Lifelong Learning
Employee training or assistance
provided by PotashCorp to upgrade
skills includes internal training courses,
funding support for external training,
and tuition assistance for college-level
degrees. See chart above.
WORKFORCE DEMOGRAPHICS
Ethnic Composition of Workforce
PotashCorp tracks the workforce
demographics at its US, Trinidad and
Brazilian operations. The company
expects to include similar data for its
Canadian locations in its 2006
sustainability report. See chart on
next page.
Gender Composition of the Workforce
PotashCorp tracks the gender
composition of its workforce at all
locations:
> In the US, women hold 8.5% of all
jobs and work in mostly clerical
positions and professional jobs.
O Social
96 of PotashCorp's Workforce 2005*

White

Black

Hispanic

Asian
American
Indian

Other

Total
Managers 71.5% 13.2% 1.5% 12.3% 0.2% 1.3% 100%
Professionals 68.3 9.3 5.5 15.6 0 1.3 100
Technicians 30.9 30.3 2.1 33.1 0 .3.6 100
Sales 80.6 6.0 12.0 1.4 0 0 100
Clerical 70.9 143 9.0 4.2 0 1.6 100
Skilled 81.8 15.6 2.3 0.1 0.2 0 100
Semi-skilled 71.5 22.9 5.3 0 0.3 0 100
Laborers/ Service 54.8 45.2 0 0 0 0 100
Total 73.9 13.7 3.9 7.4 0.1 1.0 100%
*Legal and employee relations Issues surrounding the collection and use of such data in Canada are currently being reviewed and addressed
by the company.' PotashCorp expects to be in a position to report this data next year.
Source: PotashCorp
> In Canada, women hold 8% of all
jobs with the majority of these in
clerical and professional positions. At
the Saskatoon head office, women
comprise 46% of the corporate staff.
> In Trinidad, women account for 10%
of the workforce and hold mainly
professional administrative,
secretarial and clerical jobs.
> In Brazil, women hold 20.4% of all
jobs and work in mostly technical,
clerical and administrative positions.
> In Jordan, the company has four
male employees all in management
positions.
Women in Management
The percentage of management
positions held by women has increased
over the past four years. See Gender
chart at right.
BOARD DIVERSITY
The Board of Directors had 12
members at the end of 2005. One-
quarter were female and 8% were from
minority groups. Ninety-two percent of
board members were over age 50 and
the remaining 8% were between the
ages of 30 and 50.
------ ----- - -
2002 200_3 2004 2005
% of Senior Management 29 31 38 38
Positions Held by Women
% of Management 10 10 10 13
Positions; Held by Women
Source: PotashCorp
Human Rights
HUMAN RIGHTS POLICIES
PotashCorp has adopted several
key corporate policies on human
rights issues.
Freedom ofAssociation
Consistent with its commitment in its
Code to respect the rights of the
individual, PotashCorp acknowledges
and respects a worker's right to freedom
of association.
Rights of the Individual
Its Code of Business Conduct (Code)
states that the company is committed
to respecting the rule of law,
conducting its business with integrity
and respecting human dignity and the
rights of the individual wherever it does
business. PotashCorp supports and
respects the principles of international
human rights set out in the United
Nations' Universal Declaration of
Human Rights and the International
Labor Organization's fundamental
conventions.
Child Labor and Forced Labor
The company respects the rights of
individuals and does not use child labor
or forced labor at any of its operations.
Non-Discrimination
The Code states that PotashCorp is
committed to fairness in the workplace
and will respect the rights, culture and
dignity of all individuals. It will act
fairly and justly and will not tolerate
any form of discrimination or
Social 45
harassment directed at any individual
or group. The Respect in the Workplace
Policy commits the company to provide
a work environment free of unlawful
discrimination, including harassment.
It forbids any unwelcome conduct that
is based on an individual's race, color,
religion, gender, national origin, age,
disability, ancestry, medical condition,
marital status, veteran status,
citizenship status, sexual orientation or
any other protected status. The policy
covers actions by any employee,
supervisor, officer, director, vendor,
customer or agent of PotashCorp.
Indigenous Peoples
Currently, PotashCorp has no specific
policy on indigenous relations. It
does not mine on land claimed by
indigenous peoples and has no
contracts that require indigenous
hiring or contracting. The company
has, however, begun a process of
dialogue in Canada with First
Nations' representatives to build an
understanding of mutual needs.
Disciplinary Practices
The Code stresses that no retaliation
will be taken against any employee
for raising any concern, question or
complaint in good faith.
Suppliers and Contractors
PotashCorp is increasingly involving
its suppliers and vendors in its strategic
vision. The quality of these business
partners is evaluated on the basis of
specific purchasing criteria and the
Code, which require vendors to adhere
to certain standards. Human rights
issues are taken into consideration
when purchasing decisions are made.
Q serial
MANAGEMENT RESPONSIBILITY
Operational responsibility for human
rights areas is divided among the
COO, General Counsel, Senior Vice
President, Administration and Vice
President, Internal Audit, all of whom
have management responsibility for
compliance-related matters.
MANAGEMENT SYSTEMS
PotashCorp provides awareness,
training, monitoring and enforcement
to ensure compliance with its human
rights commitments. Key elements are:
> Awareness training for employees
> A whistleblower program for
employees and suppliers
> Enforcement procedures
> Monitoring the supply chain.
HUMAN RIGHTS PERFORMANCE
Screening of Suppliers and Contractors
PotashCorp has identified 370
suppliers as "key vendors."
Documentation on human rights
policies has been requested from all of
these companies and 290 (80%) have
provided it. Work continues on
obtaining documentation from the
remaining companies. To date, no
companies have been delisted for their
human rights performance.
Training in Human Rights
PotashCorp has taken steps to ensure
all employees are aware of and
understand its values and commitments
to human rights.
Its Statement of Core Values and Code
of Business Conduct was distributed to
all employees in September 2003.
Human rights issues addressed by the
Code include respect for human dignity;
respect for the rights of the individual
wherever PotashCorp does business
and no tolerance of discrimination or
harassment directed at any individual
or group. Every year, all employees are
asked to sign a written confirmation of
their compliance with the Code.
Training in corporate policies,
including human rights policies, was
given to employees at most PotashCorp
operating sites in 2005.
Training of Security Personnel
Some PotashCorp security personnel
are direct employees, others are
contract employees. Contract security
firms provide their employees with
security training. Security training for
PotashCorp employees is provided by
the company or an outside security
firm. The type of training provided
is reviewed during a facility's annual
security audit.
Incidents of Violations
of Human Rights
There were no significant substantiated
reported incidents of discrimination
concerning employees or job applicants
in 2005.
There were no violations of freedom
of association or collective bargaining
rights.
There were no incidents involving
the rights of indigenous people.
PotashCorp does not use forced
labor or child labor at any of its
operations, and there were no incidents
of either.
Operations are surveyed annually
to establish the age of the youngest
employees at each facility. Employees
in all jurisdictions are significantly
older than the legal minimum ages
in those jurisdictions. The youngest
employee in the company worked in
Trinidad and was 18 years and 10
months at the end of 2005.
Procedures for Managing Complaints
To manage complaints and appeals,
PotashCorp has in place:
> Procedures for employees to submit
complaints or grievances
anonymously
> Committees responsible for hearing,
processing and settling disputes
related to human rights issues
> Feedback procedures for external
stakeholder complaints
Social 47
> Procedures for monitoring the
treatment of employees who file
complaints to ensure non-retaliation
> Written protocol for the
investigation and handling of
complaints.
Whistleblower Program
The handling of concerns and
complaints is an important aspect of
business ethics. PotashCorp's Code,
Respect in the Workplace Policy and other
employee and vendor policies all
provide a process for reporting policy
violations.
The Code stresses that no retaliation
will be taken against any employee or
vendor for raising any concern,
question or complaint in good faith.
The ComplianceLine introduced in
2004 provides an even more secure
method for voicing grievances
anonymously. It addresses the fact that
in certain circumstances an employee or
vendor may feel uncomfortable making
a direct complaint.
The toll-free telephone service for
employees and the separate telephone
number accessible by vendors from
anywhere in the world are available 24
hours a day. All concerns are received
by trained professionals. Callers are
given a follow-up date when a
ComplianceLine communication
specialist can share any response or
feedback the company has made to the
reported issue.
Societal Issues
KEY POLICIES
PotashCorp's approach to community
and broader societal issues is shaped by
two considerations. Its Statement of
Core Values stresses that the company
will operate under the very highest
standards of business conduct and has
clear policies and practices against
bribery and corruption, monopoly
practices and undue political influence.
PotashCorp believes companies have a
role in their communities beyond
maintaining the quality of their
products and the price of their stock.
Therefore, one measure of the
company's success is the economic
activity it generates in the communities
where it operates.
@ social
Specific policy commitments include:
Competition and Pricing
The Code of Business Conduct states
that PotashCorp will always compete
vigorously and independently in
conducting its business. At all times
it must maintain independence of
judgment and action in producing,
pricing and selling its products. It
must never contravene antitrust
or competition laws in any of the
jurisdictions where it does business.
Bribery and Corruption
The Code makes it clear that
PotashCorp will never offer, pay, solicit
or accept bribes in any form, directly
or indirectly. This includes facilitation
payments. Employees must reject any
demand for or offer of any kind of
bribe and report it immediately to
management. The Code also provides
guidance on giving or accepting gifts
and entertainment. It stresses that
business partners may not act on the
company's behalf to contravene
these commitments.
During the past year, the company
provided training in: business ethics,
antitrust and competition law, avoiding
Foreign Corrupt Practices Act
violations, addressing potential
whistleblower claims, record retention
policies, and workplace harassment.
Public Policy Involvement
Given its significant role in the
business of modern agriculture,
it is important for PotashCorp to
participate in business discussions
and public policy debates. The
company supports membership in
organizations that aim to maintain a
sound business environment, such as
trade associations. Through active trade
association memberships, public affairs
activities and political lobbying,
PotashCorp tries to take a leadership
role in many of these discussions.
Communities
The Code commits the company to
support the communities where its
employees live, and to work through
local programs and initiatives that help
generate local economic activity.
See a detailed list of community meetings at
www.potashcorp.com/2005SR/social.
MANAGEMENT RESPONSIBILITY
Operational responsibility for societal
issues is divided among the General
Counsel, who has oversight over
antitrust and corruption issues; the
CEO and the Senior Vice President,
Corporate Relations, who share
responsibility for public policy
development and communications; the
Senior Vice President, Administration,
who has responsibility for corporate
grants and the PotashCorp matching gift
program; and plant General Managers,
who are responsible for development of
community programs in their regions.
MANAGEMENT PROCESSES
PotashCorp uses a variety of processes
and procedures to ensure compliance
with its societal commitments.
Building awareness, providing
training, monitoring and enforcing are
at the core of its procedures to ensure
all employees and officers of the
company live up to its commitments
to prevent corruption and anti-
competitive behavior.
The company manages community
impacts by working with community
representatives to ensure that local
benefits flow from employment growth
and procurement of goods and services;
encouraging employment and local
sourcing; implementing a matching
gift program to ensure local
communities benefit from corporate
and employee donations; dialoguing
with communities to identify ways in
which PotashCorp can contribute to
sustainable local economic growth;
and ensuring that community
representatives are alerted in a timely
way to any plant expansions, closures or
temporary shutdowns.
SOCIETAL PERFORMANCE
Managing Impacts on Communities
PotashCorp holds periodic meetings
in its communities to address concerns
and alert the public to changes at its
operations that could affect them.
In 2005, 59 community meetings
were held.
COMMUNITY DONATIONS
PotashCorp supports charitable causes
through corporate grants, matching
contributions and in-kind donations.
> Corporate grants totaled $2.8
million, a 40% increase over 2004.
Much of the increase was due to
major corporate commitments to
disaster relief efforts related to the
Asian tsunami and Hurricane
Katrina. A donations committee
reviews requests for financial
assistance and determines recipients.
> The company's contributions under
the matching gift program totaled
$483,000, a $41,000 improvement
over 2004. US and Canadian United
Way organizations were major
beneficiaries of these donations.
> Company employees contributed
$483,000 to charitable organizations.
This amount was matched under the
matching gift program.
> PotashCorp and its employees
support their communities through
company-sponsored volunteerism
and non-cash donations of goods
and services. This totaled $757,000
in 2005.
M°t` See a detailed list of donations by category at
y www.potashcorp.coml2005SR/social.
Matching Gift Program
The PotashCorp matching gift program
is a powerful way for employees to
direct corporate donation dollars to the
charitable causes they consider most
important to their communities. The
company matches employees' eligible
donations dollar for dollar.
Recent improvements to the program
include a reduction of the minimum
gift that PotashCorp will match from
$50 to $25 and raising the maximum
that PotashCorp will match from
$3,000 to $5,000 per employee per
year. These changes should result in
significant additional benefits to
communities.
Scholarships
PotashCorp provides college
scholarships for selected children of
employees at all locations. Scholarships
awarded in 2005 totaled $64,000, with
28 one-time $1,000 divisional
Social 49
scholarships and 12 corporate awards
of $3,000 annually for four years.
Including first-time awards and
corporate awards made in the preceding
three years, $163,000 was disbursed.
All scholarship winners receive the
same divisional or corporate monetary
award, regardless of country of residence.

50 Social
Addressing Corruption
Risk Analysis
In 2005, PotashCorp hired a consultant
to perform a Fraud Vulnerability
Assessment. This was a high-level review
to identify potential fraud vulnerabilities
and make recommendations to mitigate
the risk and impact of any identified
threats or vulnerabilities. The
assessment determined that the
risk of a fraud-related event occurring
at PotashCorp is low, and noted that
ethical behavior is expected of every
employee.
Fraud Tracking Procedures
Although very few fraud-related
incidents were reported or detected
during the past five years, the Legal
department has developed a formal
process for reporting and tracking
detected violations. Each year it reports
on the number of complaints and their
nature. This report goes to the audit
committee for review.
Incidents of Legal Violations
In 2005, two employees were dismissed
for participating in a corruption scheme.
In no cases were contracts with
business partners not renewed due to
violations related to corruption.
No legal cases regarding corrupt
practices were brought against
PotashCorp or its employees in 2005.
No legal cases were pending or
completed regarding anti-competitive
behavior or violations of anti-trust
and monopoly legislation in which
PotashCorp was identified as a
participant.
Participation in Public
Policy Development
Political lobbying takes place primarily
through public affairs activities;
through the activities of fertilizer
associations in the United States and
Canada; and through registered
lobbyists in North Carolina and
Florida. The PotashCorp Political
Action Committee (PAC)
was created in 2003, and is funded
solely by US employees to make
specific political contributions at
federal, state and local levels.
Political Contributions
In 2005, the PotashCorp PAC made
contributions in the United States
totaling $15,000. Of this, $10,000
went directly to political candidates and
$5,000 was transferred to The Fertilizer
Institute's PAC, which made the
political contributions.
The company does not make in-kind
contributions to political parties.
Social 51
Product Responsibility
KEY POLICIES
PotashCorp has adopted policy
commitments designed to ensure
customers benefit from its products and
experience no harm from their use.
Product Responsibility
The SHE Policy states that
PotashCorp will assess, manage and
communicate any hazards associated
with its products. It will communicate
up-to-date information to help users
and others handle its products in a safe
and environmentally responsible manner.
Customer Satisfaction
The Code of Customer Commitment sets
out the company's commitment to
satisfy its customers by delivering what
they want and need. The company aims
to provide the highest quality products
and service at a competitive price and
in a timely manner.
Customer Privacy and Confidentiality
The Code of Business Conduct states that
PotashCorp will maintain the
confidentiality of information entrusted
to it by its customers, except where
disclosure is authorized or required by
law. The company will respect the
privacy of all individuals for whom it
maintains any personal information.
It will collect, use and disclose personal
information only with the knowledge
and permission of the affected person,
unless otherwise permitted by local laws.
MANAGEMENT RESPONSIBILITY
The President of PCs Sales has overall
operational responsibility for product
integrity and customer satisfaction
issues at PotashCorp. The General
Counsel shares responsibility for
customer privacy issues. The Vice
President of SHE shares the
responsibility for product safety
procedures and stewardship under the
SHE management framework.
MANAGEMENT SYSTEMS
PotashCorp utilizes a variety of
processes and procedures to ensure
compliance with its commitments to
product responsibility and customer
satisfaction. For example:
> Code of Customer Commitment
> Annual customer surveys measure
needs and satisfaction
> SHE policy expectations on
product safety
> Feed plant certification.
Product analysis, education, labeling,
customer service and certification are at
the core of PotashCorp's efforts toward
customer health and safety.
As we t7line we want to be able to see The most hazardous place is still at thN area the devices throughollt?Potashrorp mines mil
.. .?what's above us, said Raoul &auffe'r Vice ? where you're mining - at the fare -?wMere proceed after "further testing.
President of-T6Gnical Services. What we are° you need to be able to see These clay
u "We've shared our progress with other potash
i r3ev op if "g i pr?kiy ledmg edgy. I ? rot?ld forrrtiations right away;" Prugger laid mining companies"ih SaskatChe?Aan;'and we'll
t; ' , , ?tV s i r f1t 3Gt i ?tlbT1 ?Pu the fe 'c. z r x ; f ... a ?
the, econd
Y. totot?rtap; spills Ott 4 tlont[iaeo hive artulndifrp'erj exriarige of <>
r'? 1? 5xfefat`rrd?"isas ai?t,tttlRs
500
4rtfp peev3$s"- reeCki .rnl c' Fca l?ejnat :ofverure tb_ bitii. tlne
?' fha os?` "atf rta Q k bey0ntt the {rne iace?. ;Uns. ble TheJr?eyt?clevice wptild aUo?r. companies, are,doi g sjmilawork but we re,
fiFS pioforype"will rria ?cPay deposits as` i}?ov?ments or ?epar#ons in?the rock the furthest along on radar technology:'
`'ili11-r1'€ieW" +P?gra?Yri?f4t 1G'k?il?fil c? ??uilr?Pte?ocaoi?
r
°.` F sropelata :s see pAttmti?ql,prqpleFl7s before.,Pruggerap7 a teaVi, Qf engipee(s haYP been
„3hey ocrdF1rnfl P gger, Manager, working on the 'wo devices since 2001. The
Eajth Sc en6's at ;PotashCorp The radar clay'mappli-,g prototype is scheduled to be
devyce w4 ,i51 'JhesE conditions In real aorkrng full ffine at a more test site in the fall
Millie al(rlwl ?t1Ck §pD?se:' bf200f Tf?e seedhd prototype is'ta'rgeted for
? r a161 tria(llat6r lrr,he hoar -?Full`deploym6nt of t
1iiP'+ t P?37y,?Rt ?
52 Social
Product Analysis
All products are assessed for safety,
health and environmental risks before
leaving the plant and periodically
reassessed for any changes resulting
from new information or new uses
and markets.
Products also are assessed during
use. Reports of any adverse effects that
could be related to the company's
products are collected and analyzed.
Animal Testing
PotashCorp does not conduct animal
research studies directly. All product
biological efficacy research studies are
conducted by outside licensed
organizations using protocols and test
standards approved as safe and ethical
for treatment of animals. The company
is concerned about animal welfare and
requires outside services to meet
exacting standards for safe and ethical
treatment of animals.
Plant Certification
All of the company's US feed plants
are certified under the American Feed
Industry Association's Safe Feed/Safe
Food certification program. Under this
program, all facilities that receive
ingredients or products and recombine
them to create a product with a new
identity must have a system of
ingredient lot tracking and product
tracing. Ingredient lot tracking records
the individual ingredient lots used in
the manufacturing process and tracks
each to its respective finished products.
Product tracing provides a complete
list of all ingredient lots used in any
finished product.
Customer Education and Information
PotashCorp informs customers of any
potential hazards associated with
products and the best ways to use
those products. Whether used for crop
fertilization, livestock nutrition or
industrial applications, products require
careful storage, handling and application.
Up-to-date information on safety,
health and environmental hazards and
risks related to the use, storage, handling,
transport and disposal of PotashCorp
products is available to the workforce,
customers and others. Product literature,
safety videos and Material Safety Data
Sheets (MSDS) provide thorough
guidance on proper product use. MSDS,
labels and other information are
developed and issued to handlers and
users in accordance with legislative,
regulatory and customer requirements,
and as information changes. Online
product information is available on
PotashCorp's website.
Labeling
The company is subject to feed and
fertilizer labeling requirements in most
jurisdictions where it makes or sells its
products. Product labels are reviewed
regularly to ensure they comply with
all laws and regulations.
Customer Surveys
PotashCorp surveys customers
annually, using the information
gathered to set targets for improvement
in areas of customer satisfaction.
PERFORMANCE
Ensuring Health and Safety in
Production and Marketing
PotashCorp has procedures in place for
assessing and ensuring health and safety
at the following production and
marketing stages of the product life cycle:
> Manufacturing and production
> Marketing and promotion
> Storage distribution and supply
> Use and service
> Product certification.
Fertilizer, as a product, does not pose
problems for disposal and cannot be
reused or recycled after use.
Product Information
Prior to a new product being available
for shipment, data specification sheets
and an MSDS must be completed.
These inform customers about proper
handling of the product and its
guaranteed analysis.
PotashCorp has procedures in place
that provide the following product
information:
> Sources of product components
> Contents
> Safe use of the product
> Disposal of the product and
environmental or social impacts.
Product Labeling
PotashCorp meets product registration
and labeling requirements in all its
markets.
It is subject to feed and fertilizer
labeling requirements in most
jurisdictions where it makes or sells
its products. For example, labeling
requirements (which are similar for
each state in the United States)
generally require the following
information:
> Brand and product name
> Guaranteed analysis
> List of ingredients
> Directions for use and any warning
or caution statement
> Name and address of
manufacturer/guarantor
> Quantity statement
> Sources.
State officials inspect labels and review
samples of PotashCorp's products to
ensure they are manufactured and
distributed according to specifications.
Product labels are reviewed regularly
to ensure they comply with all laws and
regulations.
Socia 53
Advertising
PotashCorp's long-standing practice is
to ensure extensive internal review of
all advertising for technical accuracy
and legal compliance.
Results of Customer Surveys
The company's 2005 customer
surveys showed that PotashCorp
outperformed the industry average for
quality and service in all key product
categories - fertilizer, animal feed,
industrial nitrogen and purified
phosphates - and was a preferred
supplier in each.
It has always been a leader in
customer service, an important
differentiator and competitive advantage.
Its average score on a survey question
about ease of placing an order and
response to problems was approximately
10% higher than the average of its
competitors, in all four customer groups.
The 2005 surveys also identified a
desire among key customer groups for
more market information. In response,
the company increased the frequency
of the newsletters it publishes for each
customer group. Each issue now
dedicates a full page to market-specific
trends and analysis. Customers are also
referred to a comprehensive Market
Analysis Report posted on the
company's website.
Compliance with Regulations
In no instances have PotashCorp
products failed to comply with health
and safety regulations.
Over the years, there have been rare
cases of "stop sale" orders if a label is
missing or a bag of fertilizer is found
to be mislabeled.
PotashCorp has not identified any
non-compliance with regulations
concerning marketing communications.

,..
clear that strong` safety leadership was `?Il`--;'F U?lpr'y?6rl $?CF?:_Wd?LClt?grr?u LUt,'YC10?1=?., '?Yv
r a s4ety A ticn1 P Pn t9 be approved_?y its
needed from Ih?cornpany'slxop erielon,?
diuia
ratan itt
es?de`nf
lit 6 iti",
o
`
n p
r
,
l
.
The Senior Safety Leadership TearnJornned em plgyees'conipQnsotJolt waswaiigned
in early 2009 brought togfether the Chlef ;^rth?appropnate 'site safety performance
Operating Officer, the heads-of the potash, ` measures that foster full reporting of ,
phosphate and nitrogen divisions, the Vice incidents and completion of corprehensive
President of Safety, Health and Environment fnveStigations vntTt'fall?w-up a bons'aimedY
andthesenior -director of safety and health. at eliminating risk:
"Through more expiicrt corporate leadeiship the course of _
The Learn continues to charL
in Safety;-we are providing clearer safety .
safely effoeTS`byalllatg ana morfifonngey
f t in
1ct4 d r [n onM
aC+t7rf tz,?
e
Vice Presen4 grid G(hU, 7h4 'feal arrtbi4tion . Cii'Itr? RinDS?lnv4ry.'s+leySRd ,
is No harm to people through an incident- providing guidance and directtpn on safety. .
1
free culture: We strive for our employees, 4
action plans, audits of itey pro6edures and
contractors anbusiness W1`ftners-ta b?6 1 rghl
T
y , saT+?ty m? 6ttYPrtt rtt Sy?CrYttt5?-
PotashCorp's,Senwr Safari, Leadcrship.Iearn is composed, fr om left, Clark B,3dey,,0ce President vanufactvdpg and'Iechnrtal,
ter PCs Nitrogen; John Hrmr, Vice President Safety Fh alth ana Dwiroilmert, lim Dietz, Eeecut'rve Vice President and Chief
Operarrng Officer, Garth Were, President. PCS Potash; Tom Bro lket SiWor Dr,?:tor of Sdteiv and Health; acrd Torn Regan„
President. PCs Phosphate.
Coming off a vear with record low iniuly rates rnotitated and fuliv en?ag_ed in rmarovimoui

ENVIRONMENTAL
PERFORMANCE
RECLAIMED LAND
creates
A HOME FOR WILDLIFE
There's no other place in north- "I love birding up there because I "We manage the lakes, control the
central Florida like it. Where always see a lot of fascinating things," vegetation and allow people to launch
PotashCorp once mined for phosphate said Jerry Krummrich, Regional their boats - as long as they doiA use
at White Springs, our land-reclamation Freshwater Fisheries Administrator outboard motors, adding pollutants
efforts have created a welcoming with the FWC. "We find sea birds that to the lake," Krummrich said.
environment that has lured back the you don't normally see around here. Of "PotashCorp was clear they didn't want
flora and fauna. the 115 species we saw last year, 105 outboards on the lake. We're thankful
We've reclaimed more land, some were in the PotashCorp area." that they open the property up as much
11,000 acres, than we've mined in the Krummrich noted that he teaches as they do and are so willing to let the
past decade. With its rich biodiversity, birding classes on the property, and public enjoy it."
much of that land is a Wildlife "everyone is awestruck because it is "We like that our reclamation efforts
Management Area supervised by such a unique place to see so many can be seen and that the property can
the Florida Fish and Wildlife different kinds of birds." be used by our neighbors," said Stan
Conservation Commission (FWC). The site's lakes are equal in Posey, Manager of Environmental
Each year, the PotashCorp property biodiversity. Affairs at PCS White Springs. "It
is at the center of a 15-mile-radius bird "Because the reclaimed lakes are fits our commitment to both the
count area. Avid bird watchers flock more fertile, they grow more fish food environment and the community."
here to see how many avian species and therefore more fish than other
they can tally. lakes in the area," Krummrich said.
"I've seen more fish, more snakes, more
ibis, herons and ducks."
The fishing is good. The state stocks '
Eagle Lake with a hybrid white bass.
Anglers are allowed to fish there, as,
well as in another public-access lake on
the property.
Environmental 57
The Importance
of Environmental
Sustainability
PotashCorp's commitment to the
environment reduces risk, and in
some cases, lowers costs and improves
operational efficiency while
strengthening stakeholders' trust,
improving facility performance and
producing a cleaner environment. This
helps protect the company's reputation
and gives it a distinctive leadership
position in every area of its business
around the world.
Policies and
Management Systems
POLICY COMMITMENTS
According to its Safety, Health and
Environment (SHE) Policy, the
company's long-term goal is no damage
to the environment from its operations.
It aims to achieve this by continuing to
reduce waste, emissions and discharges,
and by using energy efficiently.
The SHE Policy sets out the
following commitments and
expectations with respect to energy,
water, biodiversity and wastes.
> The company aims to lessen the
environmental impacts of its
operations by using energy efficiently
and minimizing its use.
> Facilities are designed and built to
minimize air emissions and water
discharges, while meeting federal,
state/provincial and local regulatory
requirements.
> Facilities are designed, built and
operated to minimize impacts on
biodiversity.
> Facilities are operated and
maintained to minimize impacts
associated with emissions and
effluents. Comprehensive waste
management programs are in place
to ensure that wastes are minimized,
reused, recycled or disposed of
properly.
See PotashCorp's commitments at
www. potashcorp. com/sustainability/
SHE-gateway.
ENVIRONMENTAL
MANAGEMENT SYSTEM
PotashCorp has a management
framework to support the planning,
implementation and review of its
environmental programs.
Performance Expectations
This SHE management system sets out
88 performance expectations integrated
into 13 elements of accountability. It is
designed to help line managers focus
on critical needs, forecast and allocate
resources, set direction for activities
and consistently improve safety and
environmental performance.
Accountability
Accountability rests with facility or
location leaders, who put appropriate
systems and processes in place and
ensure continuing progress towards the
company's long-term SHE goals and
annual SHE targets.
Training
Employees receive ongoing training
to support the implementation and
operation of the SHE management
system. Procedures have been developed
for suppliers and contractors, and
emergency plans are regularly tested.
Corrective Action
Incidents are reported, investigated and
analyzed to prevent recurrence and
improve performance. Investigations
focus on root causes and/or system
failures. Corrective actions and
preventive measures are taken to reduce
the likelihood of future incidents.
Assessments and Audits
Checking and review take place
through external assessments. Periodic
audits review key internal controls.
Reporting
The SHE Policy commits PotashCorp
to produce an annual SHE assurance
report that summarizes progress and
planned activities. This has been
integrated into the company's annual
sustainability report.
MANAGEMENT RESPONSIBILITY
Leaders at all PotashCorp levels are
responsible for engaging the workforce
and meeting the company's SHE goals
and objectives. The Vice President
of Safety, Health and Environment
oversees the consistent application
of SHE Policy and expectations in
all operations.
Facility or site leaders are responsible
for putting appropriate systems and
processes in place for each SHE
expectation, for ensuring continuing
progress toward SHE goals, for
meeting annual targets and for using
the SHE assessment system to confirm
these processes are effective.
PotashCorp's CEO and Board of
Directors are regularly assured of
effective implementation of the SHE
commitment and expectations. Along
with requisite external corporate SHE
assessments, each facility assesses itself
annually against these expectations.
Environmental assessments and
environmental compliance audits are
periodically conducted to review key
internal controls. The safety, health and
environment committee of the board
reviews these assessments and
compliance audits.
56 Environ-W
2005 Targets 2005 Results
*Achieved C Partially Achieved O Not Achieved
Goak To have no harm to people, n o accidents and no damage to the environment.
1. Reduce the number of environmental • Releases and permit excursions were reduced by 37%.
releases and permit excursions
by 25%.
2. Achieve 100% compliance on • 100% compliance was achieved.
all environmental and safety
audit items.
3. Achieve energy efficiency in O Energy efficiency in nitrogen remained the same
nitrogen 2% better than in 2004. as in 2004.
Goak Refine corporate managemen t systems to achieve sustainability goals.
1. Establish proactive SHE key • This was completed and includes monthly
performance metrics and performance reports.
incorporate them into the
company's 2006 targets and
performance measurements.
Aurora's reclamation at Whitehurst Creek included enhancements to the aquatic culture
and stream system, and the area is again home to fish, birds and other wildlife. This
project received several awards:
The Mining Stewardship Award from the North Carolina Division of Land Resources
The Kenes C. Bowling Non-Coal National Mine Reclamation Award from the Interstate
Mining Compact Commission
The Outstanding Reclamation Award from the National Association of State Land
Reclamation ists.
Geismar received an award from the Louisiana Chemical Association for significant
reductions in its Toxic Release Inventory emissions.
dollars
_ 2002 2003 200_4__ _ 2005
Total Environmental Fines 14,450 28,510 4,970 1,100
Source: PotashCorp
GOALS AND PERFORMANCE
PotashCorp's long-term goal is no
damage to the environment. To that
end, it sets long-term environmental
and energy goals, and annual targets.
The 2005 goals and results are listed in
the table at left.
ENVIRONMENTAL AWARDS
PotashCorp received several awards for
its environmental performance in 2005,
as set out at left.
FINES
Fines for non-compliance with
environmental regulations in 2005
totaled $1,100. See chart at left.
Environmental
Performance
ENVIRONMENTAL EXPENSES
Total Expenses
In 2005, PotashCorp incurred nearly
$118 million to address environmental
issues.
Operating expenses for meeting our
environmental commitment, and
compliance with environmental laws
and regulations governing operations,
are rising and totaled $107 million in
2005. Capital expenditures to meet
pollution prevention and control
objectives were almost $11 million.
See chart on next page.
Environmental
Expenses by Division
The phosphate division accounted
for 62% of total environmental
expenses in 2005, potash 24%
and nitrogen 14%. In all divisions,
operating expenses accounted for most
of the environmental spending. Capital
expenditures related primarily to
pollution abatement and prevention.
See chart on next page.
Environmental 59
ENVIRONMENTAL EXPENSES
BY CATEGORY
The major 2005 categories were:
> Operating expenses for pollution
abatement and control, and waste
management, mainly in phosphate,
$38.4 million.
> Site reclamation costs, $19.8 million,
mainly in phosphate (96%).
> Operating costs for pollution
prevention, $20.5 million, including
processes, practices, materials and
products that avoid or minimize the
creation of pollutants or waste.
Potash accounted for more than 55%
of these expenses.
> Environmental monitoring costs,
$13.1 million, included equipment,
supplies, labor and purchased services
required to monitor pollutants
emitted. Most of these expenses were
in phosphate and nitrogen.
For a multi-year listing of
m expenses by category, see
www.potashcorp. coml2005SR/environment.
REMEDIATION OBLIGATIONS
PotashCorp restores and reclaims sites
after mining, with expenses averaging
$17.5 million annually over the past
four years.
In some cases, remediation is not
possible until a mine closes. At the end
of 2005, the company had accrued $92
million for asset retirement obligations.
PotashCorp incurs costs and
liabilities related to past waste disposal
practices at some sites previously
owned by other companies.
It is engaged in site assessment
and/or remediation activities at some
facilities, including sites it no longer
owns. It works with regulatory
authorities in this regard.
$ millions
2001 2002 2003 2004 2005
Operating Costs 68.3 66.5 73.4 90.6 107.0
Capital Costs 27.8 15.5 13.1 7.9 10.6
Total Environmental 96.1 82.0 86.5 98.5 117.6
Expenses
*Including reclamation costs
Source: PotashCorp
$ millions
2001 2002 2003 2004 2005
Potash 16.4 14.4 18.4 25.1 28.3
Phosphate 60.0 51.3 53.1 59.1 73.0
Nitrogen 19.7 16.3 15.0 14.3 16.3
Total Environmental 96.1 82.0 86.5 98.5 117.6
Expenses
Source: PotashCorp -

2005 ------------------ --
Mined Potash Ore 24,318,525 tonnes
Mined Phosphate Rock 7,510,000 tonnes
Natural Gas 145,652 813tu
Sulfur 1,979,396 long tons
Ammonia 1,761,809 tonnes
Limestone' 282,201 tonnes
Source: PotashCorp;
Use Of Materials
MATERIALS USED
The principal materials used in
PotashCorp's operations are mined
potash ore and phosphate rock,
natural gas in nitrogen production and
sulfur, ammonia and limestone in
phosphate products. See chart above.
RECYCLED MATERIALS
Few recycled materials and wastes
are used, except recovered sulfur
(a byproduct of oil refining or natural
gas production) in producing
phosphoric acid.
PotashCorp's Energy
Performance
PotashCorp uses energy in its mining
and milling processes, its chemical
manufacturing operations and in
transportation.
DIRECT ENERGY USE
The company's operations are energy-
intensive, particularly in nitrogen where
more than 30 MMBtu of natural gas
are required to produce one tonne of
ammonia.
60 Environmental
000 TJ
_ 2002 2003 2004 2005
Total Energy Used 174.5 161.7 153.8 153.9
Source: PotashCorp

% of total ---- -------------------- - - - ----------------
2001 2002 2003 2004 2005
Potash 6 7 7 8 8
Phosphate 11 11 15 16 17
Nitrogen 83 82 78 76 75
Total Energy Use 100% 100% 100% 100% 100%
Source: PotashCorp
TJ/000 tonnes ofproduction
2002 2003 2004 2005
Potash 2.00 1.85 1.71 1.63
Phosphate 13.40 12.50 12.10 12.00
Nitrogen 29.20 29.40 29.20 29.30
Source: PotashCorp
$ millions
2002 2003 2004 2005
Total Energy Costs 500 653 684 `762
Source: PotashCorp
million cubic meters
2002 2003
Well Water 19.9 20,6
River Water 54.9 54.3
Municipal Water* 7.8 7.4
Recycled Water 246.2 253.2
Total Water Used 328.8 335.5
*Including desalinated
2004 2005
19.5 18.3
48.5 40.0
7.2 7.5
256.9 261.8
332.1 327.6
Source: PotashCorp
Total direct energy use was 153,900
tera joules (TJ) in 2005, with the
nitrogen operations accounting for
75% of this. See chart at left.
The decline in energy consumption
is primarily due to lower ammonia
and urea production since the
indefinite shutdown of those
operations at Memphis and Geismar
in 2003. Over the past four years, on
a relative basis nitrogen has used a
decreasing share of energy while
phosphate's needs have increased. See
Energy Use by Division chart at left.
INDIRECT ENERGY USE
Indirect energy, such as that
consumed by power companies and
in transporting products to market, is
not tracked at present by PotashCorp.
ENERGY EFFICIENCY
Between 2002 and 2005, energy
efficiency improved 19% at the
potash facilities and 10% at the
phosphate operations. Nitrogen
energy requirements per tonne
were essentially unchanged. See
chart at left.
For examples of our energy
efficiency activities, see
www. ptashcorp. coml2005SR/environment.
SOURCES OF ENERGY
The major sources of energy used by
PotashCorp in 2005 were
cogeneration and waste heat
recovery (37.5%), natural gas (31%),
carbon fuels such as coal, diesel and
fuel oil (27.5%) and purchased
electricity (4%).
ENERGY FROM COGENERATION
AND WASTE HEAT RECOVERY
PotashCorp has taken several steps
to optimize the generation of
electricity or power by capturing the
waste heat from its operations. It has
also taken advantage of cogeneration
opportunities.
Environmental 61
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N
fn?fenars ?Ye regtiir? to 1Je r?artlfied every three
yeaiS and pinttr?tnei5 p?rttci{ate 3n tram the'Irdir
? ?t?t?4?e??iy dt??et year fr7 addition; .all-prbduct±at
?sit6s condtJ`ct;iAf tW Ajng-Orogiam-S anrtualiy.
tn1005; PotashC0rp?6iade.103,000 shipments a
experienced 1Q incidents involving the release of
hazardous materials. All 10 releases were ''non-
Y acerll a a;shtppit3g veiiigle.; Norfoik Southert>'s NatPan"a1 Accnuitt Manager] pot why fo dtsrrignttgtn,,a K
For examples of our
cogeneration activities, see
www. potashcorp. cam/2005SR/environment.
ENERGY COSTS
Despite declining energy consumption
at its operations, PotashCorp's energy
costs have increased significantly over
the past four years - reflecting the
higher prices paid for natural gas,
carbon fuels and electricity. See Energy
Costs chart on previous page.
Water
WATER CONSUMPTION
Water use was 328 million cubic meters
in 2005, and 80% was recycled. See
Water Use by Source chart on previous
page. Phosphate accounted for 86% of
water used by the operating divisions.
Water is used to separate phosphate
rock from clay and sand, and most is
recycled. The rock is mixed with the
% of total
2002 2003 2004 _ 2005
-----
Potash 2.8 2.8 "-2.7 2.5
Phosphate 82.0 83.4 82.7 86.3
Nitrogen 15.2 13.8 14.6 11.2
Total Water Used
- 100.0 100.0 100.0 100.0
Source: PotashCorp
recycled water into a slurry that is
pumped to the processing plant,
where it is screened to remove coarse
materials, washed to remove clay and
floated to remove sand. See Water Use
by Division chart above.
WATER RECYCLING
Recycled water normally accounts for
about three-quarters of PotashCorp's
water consumption. Recycling occurs
at all sites, but most extensively at the
phosphate operations.
IMPACT ON WATER SOURCES
Significant portions of PotashCorp's
phosphate reserves at Aurora are
located in wetlands. The permit to
mine these areas requires mitigation
of wetland impact. Land has been
acquired adjacent to the facility for
mitigation purposes.
In Florida, wetlands must be
reclaimed at least acre for acre.
PotashCorp's permits and related
agreements with federal, state and local
PotashCorp's attention to detail, training and
OerAtnora phosphate facility has instituted _
Constant communication with us have a lot to,da a,rarl yard safety effort to reinforce proper
62 Environmental
000s tonnes
2001 2002 2003 2004 20
0
5
_
Salt as Brine to Sea
351.6
372.8
364.3 _
417.5 -
-
-
.
580.2
Nitrogen as N 0.397 0.484 0.490 0.520 0.527
Fluoride, 0.124 0.120 0.193 0.238 0.238
Phosphorus 0.206 0.275 0.189 0.276 0.493
Methanol 0.065 0.072 0.058 0.048 0.054

Source: PotashCorp - ---- ------- -
Rocanville 1,490 hectares preserved as natural aspen parklands. Developing
wetland with Ducks Unlimited as waterfowl marsh.
Patience Lake Two wetlands being preserved on the property are part of the Acres
for Wildlife program of the Saskatchewan Wildlife Federation.
Lanigan 800 hectares converted to permanent grasslands. More than 9,000
trees and shrubs planted. Developed wetland area attracting waterfowl.
Allan Approximately 1,000 trees and shrubs have been planted around
the mine site. Wetlands and natural forest within the 3,000-hectare
area around the operation are left in a natural state and cannot
be cultivated.
Cory 240 hectares maintained naturally as wildlife habitat. More than
2,000 trees planted.

White Springs -- - --------- ---- ----- - ----------
35 reclamation projects cover more than 4,500 hectares. About half
the projects, and one-fourth of the area, involve wetlands restoration.
Approximately seven million trees planted.
Aurora Considerable effort spent on land reclamation and wetland
mitigation, covering 2,352 hectares over the years. About 2.1 million

- - - - ------------------ -- trees planted.
----

Cassidy Lake - --- ----------
Site personnel are involved with fisheries and wildlife initiatives
(Hammond River Angling Association and Ducks Unlimited).
Source: PotashCorp
000s tonnes
2002 2903 2004
Carbon °Dioxide ;(nue) _
3,971 ___
3,869 _
3,323
Carbon Dioxide (process) 2,654 2,485 2,412
Nitrous Oxide (as C02 equivalent)* 2,103 1,908 1,780
Methane (as Coe equivalent)* 25 23 24
Total GHGS (as Cot equivalent) 8,753 8,286 7,540
*GHG emissions require a conversion factor to reach reported totals as C02 equivalents.
Source: PotashCorp
2005 _
3,156
2,568
1,387
29
7,140
regulatory authorities require additional
mitigation through preservation of
certain sensitive lands from mining,
assistance with wetland enhancement
or restoration on public lands, granting
of conservation easements, off-site
mitigation and defined contributions for
public acquisition of environmentally
sensitive lands in the region.
Phosphoric acid production creates
gypsum, which is normally stored in
above-ground stacks. Stacks must be
closed once they reach the end of their
useful lives. Closure includes capping,
resloping, water management and
long-term care, specified by regulation.
The inactive portions of the gypsum
stacks at Geismar are capped, with
water management systems in place.
WASTES TO WATER
The most significant waste that
PotashCorp discharges to water is
salt as brine, discharged by the New
Brunswick potash operation into the
Bay of Fundy. See Emissions to Water
chart at left.
Biodiversity
LAND USED
In 2005, PotashCorp conducted
production and mining activities on
69,437 hectares of company-owned
land. Phosphate operations had 55,893
hectares, l% of it impermeable (covered
by roads, buildings or other fixed
structures). Nitrogen operations
totaled 574 hectares (15% impermeable)
and potash 12,970 hectares
(1% impermeable).
MANAGING BIODIVERSITY
PotashCorp takes steps to understand,
avoid, minimize and mitigate
biodiversity impacts throughout the
life cycle of its operations. It believes
biodiversity is promoted by enhancing
or preserving habitat at and near its
operations.
Environmental 63
The company takes steps to
minimize negative impacts on the
surrounding lands and water, which
allows natural biodiversity to continue.
To this end, its SHE management
system sets out a number of
expectations.
Facilities are designed and
constructed to minimize impact on
biodiversity and other environmental
impacts, while meeting federal,
state/provincial and local regulatory
requirements. Where these regulatory
requirements are absent, PotashCorp
strives to develop standards that
appropriately protect people and the
environment. Facilities must be
operated and maintained to minimize
impacts on biodiversity.
All facilities are expected to report
performance data as part of the
company's SHE reporting requirements
INITIATIVES TO RESTORE
ECOSYSTEMS
Lands affected by company operations
are ultimately remediated, reclaimed
and/or restored. As part of land
reclamation, PotashCorp plants on
average 30,000 - 40,000 trees annually at
its operations. The number can increase
significantly during various reclamation
phases.
Initiatives to restore ecosystems at
individual sites are set out in the chart
on the previous page.
IMPACT ON RED LIST SPECIES
The company is unaware of any
International Union for Conservation
of Nature and Natural Resources Red
List species in areas affected by its
operations.
For more information on biodiversity
4 initiatives, see
1. www.potashcorp.coml2005SR/environment.
tonnes GHGs/ tonne of production
2002 2003 2004 2005
Potash 0.08 0.06 0.05 0.05
Phosphate 0.70 0.50 0.40 0.50
Nitrogen 1.80 2.00 1.90 2.00
Source: PotashCorp
000s tonnes
2002 2003 2004 2005
Nitrogen Oxides 8.71 7.07 7.04 6.65
Carbon Monoxide 9.18 8.86 8.93 5.29
Particulate (dust) 5.03 4.32 4.38 4.70
Sulfur Dioxide 8.50 8.75
-~-? 8.64 9.43
-
Source: PotashCorp -
Emissions to Air
GREENHOUSE GAS EMISSIONS
Fertilizer manufacture requires natural
gas and other inputs for feedstock and
energy, thereby generating greenhouse
gas (GHG) emissions, primarily C02.
In 2005, PotashCorp's GHG
emissions (as C02 equivalent) totaled
just over seven million tonnes, from
two main sources:
> Carbon dioxide in flue gases from
potash and nitrogen operations.
> Carbon dioxide in process gases from
nitrogen operations.
See Greenhouse Gas chart on previous page.
NORMALIZED GHGs
Between 2002 and 2005, greenhouse
gas emissions declined on a normalized
basis (adjusted for production increases)
at PotashCorp's potash and phosphate
operations. They increased at its
nitrogen operations on a unit of
production basis. See Normalized GHG
chart above.
INDIRECT GREENHOUSE
GAS EMISSIONS
GHG emissions that result from
purchased electricity used by
PotashCorp operations are monitored
only by the potash division and not
tracked company-wide.
CRITERIA AIR POLLUTANTS
The US Environmental Protection
Agency and other national agencies
regulate criteria air pollutants which,
in significant concentrations above
ambient air standards can injure health,
harm the environment and damage
property. The current criteria pollutants
are carbon monoxide, nitrogen oxides,
particulate matter, sulfur dioxide, lead
and ozone.
PotashCorp produces significant
quantities of four of the six criteria air
pollutants. Emissions of most of these
have declined over the past four years,
but sulfur dioxide emissions, as
measured by the annual compliance
test, have increased. See Criteria Air
Pollutants chart above.
O Environmental
OTHER SIGNIFICANT
AIR EMISSIONS
The company also produces quantities
of other air emissions, including
substances on US federal and state
regulatory lists and/or emissions
regulated locally. Most of these
emissions are produced in small
quantities.
PotashCorp produces no ozone-
depleting substances. It uses small
amounts of chlorofluorocarbons
(CFCs) in refrigeration and cooling
systems. As these systems are upgraded,
the company is eliminating CFC use.
See Other Signi iicantAir Emissions
chart on next page.
Solid Wastes
WASTES PRODUCED BY
PHOSPHATE DIVISION
White Springs, Geismar and
Aurora have gypsum stacks, for
phosphogypsum (gypsum), which
is a waste of phosphoric acid
production. In a unique reclamation
process, Aurora blends new gypsum
and old gypsum stack material with
clay, returning the gypsum/clay blend
to the mined out areas while reducing
the old stacks.
WASTES PRODUCED
BY POTASH DIVISION
Potash production's waste product is
predominantly common salt tailings
that are contained in managed above-
ground storage areas. The exception is
the New Brunswick operation, which
returns nearly all waste to mined areas
underground.
WASTES PRODUCED
BY NITROGEN DIVISION
Nitrogen operations produce no
significant volumes of solid wastes.
See solid wastes chart on next page.
NON-PROCESS WASTES
Non-process wastes from PotashCorp
facilities include paper, oil, batteries,
spent catalysts, paint, printer cartridges,
light bulbs and many other materials.
More than half, by volume, is recycled.
Disposal procedures are based on US or
Canadian regulations. See Non-Process
Wastes chart on next page.
HAZARDOUS WASTES
Hazardous waste disposal in 2005 was
792 tonnes. The increase over 2004
was due primarily to expansions in
the potash division.
SPILLS AND OTHER INCIDENTS
PotashCorp's aim is that all incidents
are reported and addressed quickly,
and their occurrence reduced.
There were several environmental
events reported by the company in
2005, including 31 hazardous material
incidents. Eleven spills occurred, eight
in potash and three at phosphate
operations. See Environmental Events
chart on next page.
Products
ENVIRONMENTAL IMPACTS
OF PRODUCTS
Use of fertilizer results in some GHG
emissions, and applied in excess, it can
impact water quality. PotashCorp works
directly with users (and indirectly
though trade associations) to educate
customers on the proper application of
its products, stressing the need to avoid
using more than is necessary.
Environmental %!.N
The company also produces products
with significant environmental benefits,
in the areas of emission control, water
treatment and heavy metal remediation.
PRODUCT
RECLAMATION/RECYCLING
See details of the products PotashCorp
produces that have environmental benefits at
www. potashcorp.coml2005SR/environment.
Fertilizer products provide nutrients to
the land and are used by plants. None
of these is reclaimable. Products sold as
animal feed and industrial applications
are also inputs.
Indirect
Environmental Impacts
ENVIRONMENTAL IMPACTS
OF TRANSPORTATION
PotashCorp's operations involve
three transportation activities with
environmental impact: receiving
materials from suppliers, distributing
product to customers and
transportation used in the course
of conducting business. Their
environmental impact is not monitored.
ENVIRONMENTAL PERFORMANCE
OF SUPPLIERS
Pre-qualification, selection and
retention criteria are established for
contractors, service providers and
suppliers, including a system for
assuring their compliance with
PotashCorp's SHE expectations.
If an environmental or other incident
occurs as a result of a contractor's
activities, a Flash Report is issued
immediately. It includes corrective
actions that the contractor is responsible
for implementing. The incident is
recorded in the contractor's file.
000s tonnes
2002 2003 2004 2005
Volatile Organic Compounds 1.5 1.6 1.6 1.2
Ammonia 6.7 7.2 6.5 7.7
Fluoride* - 13.6
Hydrogen Sulfide 1.75 1.40 1.37 1.27
Sulfuric Acid Mist 0.065 0.141 0.107 0.106
*First year reporting fluoride in air emissions.
Source: PotashCorp
000s tonnes
2001 2002 2003 2004 2005
Gypsum 6,741 6,438 7,995 8,564 8,883
Waste Salt to Storage 7,664 7,922 7,592 8,581 10,516
Clay Waste (fine tailings) 611 683 637 812 895
Waste Salt and Clay to Mine 1,484 1,417 1,659 1,819 1,638
Salt as Brine Injection Well 1,606 1,540 3,084 3,579 3,607
Source: PotashCorp
000s tonnes
2001 2002 2003 2004 2005
Solid Waste Off-Site 5.4 6.2 6.6 8.6 9.1
Solid Waste On-Site 852.0 821.0 863.0 824.0 1,046.0
Solid Waste Recycled 1.5 2.5 2.9 2.9 4.9
Hazardous Waste Disposal 0.139 0.179 0.320 0.438 0.792
Source: PotashCorp
2001 2002 2003 2004 2005
US Federal Reportable 51 15 16 18 20
Permit Excursions 81 39 23 30 10
Provincial Incident Reports (spins) 7 8 18 4 11
Hazardous Materials Incidents 30 27 33 24 31
Source: PotashCorp
O Site Performance
potashcorp site
performance
IT IS AT THE LOCAL LEVEL that PotashCorp's commitment to sustainability
lives every day. With local stakeholders in mind, PotashCorp measures performance
on a site-by-site basis and reports it that way. The following pages present data from
each operating site, as well as information on how to contact management at each
facility with questions or comments.
ABOUT THE MEASUREMENTS
Site highlights report data' in the units of measurement used at the particular
operation being measured. For example, the company's Canadian potash facilities
weigh product and emissions in metric tonnes, while the nitrogen and phosphate
facilities use short tons. Energy use is reported in joules, megawatts and British
Thermal Units, depending on what is the most appropriate measurement.
Safety is measured in terms of injuries per 200,000 work hours.
'This section contains data from all PotashCorp operations covering the past three years. As PotashCorp continues to refine
its data-gathering processes, year-to-year data may differ, reflecting greater accuracy in the company's reporting.
Site Purocmance 67
potash operations
ALLAN
Allan, Saskatchewan SOK OCO [phone]
Stewart Brown, General Manager [e-mail]
Operations
Allan mines potash at a depth of 1,040 meters (3,400 feet),
producing granular, standard and industrial grade for agricultural
and industrial use. It has an annual capacity of 1.9 million tonnes KCI
Significant Achievements
The division set new tonnage and productivity records in 2005
while meeting the challenge of continuous four-shift operation with
many new employees.
It negotiated a new three-year collective agreement with hourly
employees.
Allan received approval for and began work on a plant
debottlenecking project, which will increase daily production by
25%, and a compaction expansion project.
Community Relations
Mine management discussed the debottlenecking and expansion
projects with community leaders, focusing on project details and
community impact, including job and service opportunities. The
impact of the change to a four-shift operation was also discussed.
Community Donations
Cash donations to local community organizations in 2005 totaled
almost Cdn $52,000. The main recipients were the Allan Centennial
Committee, Town of Allan Parks and Recreation, Promotional Display
and Museum Project, and Saskatoon Regional Science Fair. In-kind
contributions to local recreation groups and sporting organizations
totaled Cdn $32,000.
Environmental Initiatives
New low-NOx burners were installed in the red product dryers in
2005. They are designed to reduce NOx emissions to less than 10
parts per million (ppm), from the 30 ppm generated by the older
burners. They are also significantly quieter, which improves the mill's
work environment.
A new wet crushing circuit was installed as part of the
debottlenecking project, replacing the dry crushing circuit in the
milling process. The new circuit requires no dust collection and the
dust scrubber used with the dry crushing circuit has been removed.
Local Procurement
In 2005, Allan purchased locally about 81% of all products and
services it used, a total of Cdn $26.9 million. Electricity and natural
gas purchases are not included.
Performance Trends
2003 2004 2005
Annual Production
(tonnes KCI) 933,971 1,344,017 1,430,700
Employment
Number of employees 270 285 293
Number of female employees 8 8 8
Gender ratio (% female/total employees) 3.0% 3.0% 2.7%
Average tenure (years) 21.7 19.4 17.7
Absenteeism rate (% hours absent) 5.4% 6.1% 6.9%
Employee training provided (hrs per employee) 55 110 103
Safety Performance
Lost Time frequency (per 200,000 hrs) 0 0 1.0
Recordable frequency (per 200,000 hrs) 4.5 3.6 8.8
Greenhouse Gas Emissions
GHG emissions (000 tonnes C02 equivalent) 62.8 81.2 83.7
Normalized GHGs (GHGs/tonnes production) 0.07 0.06 0.06
NPRI Air Pollutants (tonnes)
Nitrogen oxides 53.9 68.4 72.3
Carbon monoxide 43.4 58.5 62.4
Particulates (dust) 300.3 352.1 378.9
Volatile organic compounds 53.9 71.1 84.4
Waste to Land (000 tonnes)
Waste salt to storage 1,079 1,696 2,086
Clay waste 130 177 196
Salt in brine injection well 647 645 609
Water Use (000 cubic meters)
River water 1,317 1,653 1,737
Environmental Expenditures ($Cdn)
Operating expenditures $1,080,000 $2,750,000 $2,799,000
Capital expenditures $15,000 $0 $175,000
Energy
Energy costs ($Cdn) $12 .2 million $14.9 million $19.2 million
Energy use (IJ) 1,514 1,890 1,986
Energy efficiency (GJ/tonnes production) 1.62 1.40 1.39
Procurement
Local purchasing ($Cdn) $22.5 million $20.2 million $26.9 million
LLAN
O Site Performance
CORY
Box 1320, Saskatoon, Saskatchewan S7K 3N9 1 [phone]
Rob Bubnick, General Manager [e-mail]
Operations
Cory is an underground mining operation with an annual capacity
of 1.36 million tonnes KCI. It produces white soluble and granular
product, chicklets and K-Prills. Industrial product applications
include water softeners and ice melt.
Significant Events
The cooling tower used to cool the final stage crystallizer was
successfully removed, eliminating employee safety concerns about
the equipment, reducing the environmental impact and improving
production.
Cory set an annual production record of 826,471 tonnes, breaking
the old record by 79,460 tonnes.
In safety, the recordable frequency of 4.08 was 32% lower than in
2004 and 25% lower than the five-year average.
The mine negotiated a new three-year collective agreement with
hourly employees.
Community Contributions
Cory made cash donations of $9,050 to local community social
organizations in 2005. The main recipients were YMCA Partners With
Kids, Saskatchewan Potash Golf Tournament, Terry Fox Run, Battle
of the Badges and the Cory Cougars. The United Way was the major
recipient of in-kind contributions.
Environmental Initiatives
Dryer scrubber improvements decreased stack emissions by 37%.
Local Procurement
The value of goods, materials and services purchased locally in
2005 was $18.4 million, 71% of total procurement. Electricity and
natural gas purchases are not included.
DRY
Performance Trends
2003 2004 2005
Annual Production
(tonnes KCI) 730,097 737,673 826,471
Employment
Number of employees 195 196 207
Number of female employees 7 7 7
Gender ratio (% female/total employees) 3.6% 3.6% 3.4%
Average tenure (years) 14.8 14.6 13.1
Absenteeism rate (% hours absent) 5.8% 7.1% 6.0%
Employee training provided (hrs per empl oyee) 78 80 43
Safety Performance
Lost-Time frequency (per 200,000 his) 0 1.40 0.45
Recordable frequency (per 200,000 hrs) 1.36 6.05 4.08
Greenhouse Gas Emissions
GHG emissions (000 tonnes C02 equivalent) 97.0 39.0 37.1
Normalized GHGs (GHGs/tonne production) 0.13 0.05 0.04
NPRI Air Pollutants (tonnes)
Nitrogen oxides 126.6 120.9 34.9
Carbon monoxide 108.0 101.7 32.4
Particulates (dust) 643.0 632.0 527.0
Volatile organic compounds 9.96 9.72 3.64
Waste to Land (000 tonnes)
Waste salt to storage 608.2 794.2 914.7
Clay waste 107.0 100.7 107.7
Salt in brine injection well 1013.2 897.9 904.0
Water Use (000 cubic meters)
River water 1,698 1,586 1,485
Environmental Expenditures ($Cdn)
Operating expenditures $1,440,800 $2,842,900 $1,438,000
Capital expenditures $143,600 $392,500 $407,900
Energy
Energy costs ($Cdn) $24.2 million $24.3 million $29.4 million
Energy use (TJ) 3,287 3,166 3,257
Energy efficiency (GJ/tonne production) 4.50 4.29 3.94
Procurement
Local purchasing ($Cdn) $9.6 million $14.8 million $18.4 million
Site Performance 69
LANIGAN
Box 3100, Lanigan, Saskatchewan SOK 2MO [phone]
Mark Fracchia, General Manager [e-mail]
Operations
The largest of PotashCorp's potash mines, Lanigan has an annual
capacity of 3.8 million tonnes KCI. It produces granular, standard
and suspension potash products. Underground mining operations
take place at a depth of 1,000 meters (3,300 feet).
Significant Events
Lanigan milled record tonnes of raw ore in 2005, surpassing its
2004 record.
PotashCorp is investing more than Cdn $300 million to refurbish
the Phase I mill that has been idle since the mid-1980s, bringing
back 1.5 million tonnes per year of idled capacity. Existing
equipment is being demolished, new structures and equipment
installed, hoists and skips upgraded and mine infrastructure
improved to support higher production.
Community Relations
Local communities were very interested in how they could benefit
from the mill project. Management met with community leaders to
inform them of the project and to discuss how the division would
work with the communities to help them benefit.
The General Manager is a member of the Lanigan Economic
Development Committee and the Action Humboldt Steering
Committee, whose role is to stimulate economic development in
Humboldt and the surrounding area, including Lanigan.
Community Contributions
Lanigan donated Cdn $27,320 to local community social
organizations in 2005. The major recipients were the town's Lions
Club, Recreational Complex, Sports Day, Girls Ball Club and
Daycare. Cash donations were also provided for several local
centennial celebrations.
In-kind contributions to local community organizations were valued
at Cdn $17,906. The major beneficiaries were Lanigan Golf and
Country Club, blood donor clinics and curling club, Wapiti Valley Ski
Area and Pleasantdale Skating Rink.
Awards
Lanigan's emergency rescue team was overall underground winner
at the Provincial Mine Rescue Competition in June 2005. Rod
Greve, Mine Operations Production General Foreman, was the
Saskatchewan Mining Association's Emergency Response Person
of the Year.
Environmental Initiatives
As part of the mill project, all known hazardous materials were
removed from the mill, including asbestos-containing materials
(except siding), PCBs and controlled substances such as greases,
acids, solvents, etc. A fine tailings pond/sewage disposal lagoon
was restored and converted to a staging area for new equipment.
A site-wide PCB removal program was initiated and completed.
Local Procurement
Local purchases, including expenditures related to the mill project
in 2005, represented 75.6% of all expenditures, Cdn $51 million.
Electricity and natural gas purchases are not included.
Performance Trends
2003 2004 2005
Annual Production
(tonnes KCI) 1,488,436 2,024,769 2,023,424
Employment
Number of employees 333 346 378
Number of female employees 12 13 17
Gender ratio (% female/total employees) 3.6% 3.8% 4.5%
Average tenure (years) 17.8 16.4 16.9
Absenteeism rate (% hours absent) 5.1% 4.9% 5.7%
Employee training provided (hrs per empl oyee) 41 50 50
Safety Performance
Lost Time frequency (per 200,000 hrs) 0 0.29 0.81
Recordable frequency (per 200,000 hrs) 5.0 3.5 5.38
Greenhouse Gas Emissions
GHG emissions (000 tonnes C02 equivalent) 65.9 78.9 84.2
Normalized GHGs (GHGs/tonne production) 0.04 0.04 0.04
Criteria Air Pollutants (tonnes)
Nitrogen oxides 68.7 66.5 65.2
Carbon monoxide 111.5 319.1 198.3
Particulates (dust) 596.8 725.0 853.0
Volatile organic compounds 100.5 140.5 201.1
Waste to Land (000 tonnes)
Waste salt to storage 2,637.6 3,507.6 3,459.9
Clay waste 358.1 496.3 524.8
Salt in brine injection well 875.1 1,342.7 1,428.7
Water Use (000 cubic meters)
Well water 1,303 1,790 1,860
River water 849 1,113 1,076
Environmental Expenditures ($Cdn)
Operating expenditures $1,544,000 $1,749,000 $1,972,400
Capital expenditures $311,000 $66,000 $234,000
Energy
Energy costs ($Cdn) $17.3 million $19.7 million $21.1 million
Energy use (TJ) 1,966 2,388 2,465
Energy efficiency (GJ/tonne production) 1.32 1.2 1.2
Procurement
Local purchasing ($Cdn) $16.4 million $18.5 million $51.0 million
ANIGAN
70 Site Perform-
PATIENCE LAKE Performance Trends
Box 509, Saskatoon, Saskatchewan S71K 31.9 [phone] 2003 2004 ` 2005
Rob'Bubnick, General Manager's [e-mail] Annual Production
Operations (tonnes KCI) 250,683 239,061 251,033
Originally a conventional underground operation, Patience Lake was Employment
converted to a solution mine in 1988 after two periods of closure

due to flooding. Solution mining dissolves the potash from the ore Number of employees 67 67 66
Number of female employees 4 4 4
by circulating brine through the flooded conventional mine workings Gender ratio (% female/total employees) 5.9% 5.9% 5.8%
1,000 meters (3,300 feet) below the surface. The operation Average tenure (years) 19.3 20.3 21.3
produces lawn and garden and granular-grade potash for Absenteeism rate (% hours absent) 4.7% 4.1% 5.2%
agriculture, with annual capacity of 1.03 million tonnes KCI. Employee training provided (his per employee) 26 30 40
Significant Achievements Safety Performance
Replacement of the dryer scrubber with a baghouse has had a Lost-Time frequency (per 200,000 his) 0 1.76 0
major impact, reducing atmospheric emissions to approximately Recordable frequency (per 200,000 hrs) 5.4 8.8 5.0
2.5% of the regulated standard.
Greenhouse Gas Emissions
The recordable injury frequency rate was reduced by 43% from

2004 and 24% from the five-year average. GHG emissions (000 tonnes CO equivalent) 38.4 35.9 37.4
Normalized GHGs (GHGs/tonne production) 0.15 0.15 0.15
The mine negotiated a new three-year collective agreement

with hourly employees. NPRI Air Pollutants (tonnes)
Nitrogen oxides 36.7 36.2 36.4
Community Relations Carbon monoxide 28.0 26.3 26.0
Patience Lake donated $3,100 to local community organizations Particulates (dust) 335.1 306.0 214.1,
in 2005. The top recipients were the Saskatchewan Wildlife Art Volatile organic compounds 1.9 2.0 1.8
Association, Saskatoon Retriever Club, Aberdeen Recreation

Complex, Patience Lake Solution Ball Team and Clavet Community Waste to Land (OOO tonnes)
School's Walk for Cancer.' Belting was donated to the local ice arena. Waste salt to storage 37.0 39.7 69.9
Waste salt and clay to mine 141.6 127.9 124.7
Awards
Patience Lake's emergency rescue technician team won the Water Use (000 cubic meters)
Saskatchewan mine rescue title for surface teams in 2005. River water 868 1,082 761
Local Procurement Environmental Expenditures ($Cdn)
Goods, materials and services purchased locally in 2005 totaled Operating expenditures $201,000 $1,207,600 $535,000
Cdn $3.1 million, 61% of total procurement. Electricity and natural Capital expenditures $397,000 $451,100 $1,503,500
gas purchases are not included, Energy
Energy costs (scan) $1.0 million $7.2 million $8.4 million
Energy use (0) 908 868 852
Energy efficiency (GJ/tonne production) 3.62 3.63 3.40 "
Procurement
Local purchasing ($Cdn) $1.9 million $2.5 million $3.1 million
1TIENCE LAKE
Sim Performance 71
CASSIDY LAKE
Box 5005, Sussex, New Brunswick E4E 51-1 [phone]
Michael Hogan, General Manager [e-mail]
Operations
In October 2005, milling operations were permanently shut down
at Cassidy Lake, laying off 18 hourly and three staff employees.
The division continues to handle the disposal of brine trucked from
the New Brunswick operation.
Significant Challenges
Increased trucking of brine from the New Brunswick operation
combined with unusually heavy rainfall to dramatically increase
the brine pond level at Cassidy Lake. The challenge was to
maintain a sufficient and safe level of freeboard in the pond.
The permanent shutdown of milling operations was also a
challenging development.
Achievements
The division achieved eight years without a lost-time injury on
August 23, 2005.
Community Relations
The community continues to be concerned about the transport of
brine by truck from the New Brunswick production site to Cassidy
Lake for disposal, especially with truck safety and speed. These
concerns are being addressed by retrofitting the trucks with onboard
speed monitoring systems and through truck maintenance programs.
Management met with area residents to discuss changes to the
brine line that pumps to the Bay of Fundy. The meeting provided an
opportunity to review the rationale for the change, the project
description, mitigation of environmental issues and the type of
work that would be conducted.
Community partnerships include support for the Hammond River
Angling Association, which is involved in maintaining and improving
the Hammond River watershed.
Local Procurement
Cassidy Lake local purchasing totaled $4.4 million in 2005,
representing 71% of all procurement. Electricity and natural gas
purchases are not included.
IssIDY LAKE
Performance Trends
2003 2004 2005
Annual Production
(tonnes KCI) 220,592 319,442 283,901
Employment
Number of employees 29 29 8
Number of female employees 2 2 2
Gender ratio (% female/total employees) 6.9% 6.9% 22.2%
Average tenure (years) 16.4 17.4 16.3
Absenteeism rate (% hours absent) 2.5% 4.1% 2.1%
Employee training provided (hrs per empl oyee) 9 17 109
Safety Performance
Lost Time frequency (per 200,000 hrs) 0 0 0
Recordable frequency (per 200,000 hrs) 6.0 0 0
Greenhouse Gas Emissions
GHG emissions (000 tonnes COz equivalent) 6.5 8.3 6.6
Normalized GHGs(GHGs/tonne production) 0.03 0.03 0.02
NPRI Air Pollutants (tonnes)
Nitrogen oxides 5.1 8.0 5.0
Carbon monoxide 1.2 1.6 1.3
Particulates (dust) 123.2 224.6 202.6
Volatile organic compounds 0.4 0.5 0.4
Emissions to Water (000 tonnes)
Salt brine to sea (dry basis) 170 154 128.3
Water Use (000 cubic meters)
Well water 77 162 76
Environmental Expenditures ($Cdn)
Operating expenditures $606,700 $451,500 $757,700
Capital expenditures $1,600,600 $203,400 $2,365,000
Energy
Energy costs ($Cdn) $2.4 million $2.9 million $2.8 million
Energy use (T1) 171 213 179
Energy efficiency (GJ/tonne production) 0.77 0.66 0.6
Procurement
Local purchasing ($Cdn) $1.1 million $2.5 million $4.4 million
72 Site Performance
NEW BRUNSWICK Performance Trends
Box 5039, Sussex, New Brunswick E4E 51-2 [phone] 2003 2004 2005
Michael Hogan, General Manager [e-mail] Annual Production
Operations
Underground mining operations take place at a depth of between
400 and 700 meters (1,300 to 2,300 feet). The refinery produces
sylvite (potash) and halite (salt), with an annual capacity of 0.785
million tonnes KCI and 0.650 million tonnes of salt.
Community Relations
A continuing concern in the area is the water well problems
experienced by some households in Penobsquis. While the source
of the problem is undetermined, the plant supplied drinking water
(bottled water and coolers) to residents experiencing water
problems. The plant continues to work with government
representatives (through a water committee) as they pursue a
regional water supply model.
Community Donations
Cash donations to community social organizations in 2005 totaled
Cdn $20,809. The top recipients were the Hammond River Angling
Association (an environmental group), the Dairy Town Classic
Basketball Tournament, Sussex Vale Transition House, Theatre New
Brunswick and Hospice New Brunswick.
The estimated value of in-kind donations for 2005 was Cdn
$40,186, with major recipients being local Penobsquis residents
and the Kennebecasis Watershed Restoration Committee. Many
other organizations received small donations of materials.
Awards
New Brunswick Division was the recipient of the 2005 Canadian
Institute of Mining, Metallurgy and Petroleum's National John T. Ryan
Award for Select Mines. The award, which is the most prestigious of
all safety awards in the mining industry in Canada, recognizes the
New Brunswick Division for working throughout 2005 without a
single modified-work or lost-time accident.
The site was recognized for its contributions to the 2005 Dairy Town
Classic Basketball Tournament and its many years of support of
Theatre New Brunswick.
It received the New Brunswick Mining Association trophy for the
mine in the province with the lowest accident frequency for the
year 2004.
The division reached three million hours without a lost-time
accident on December 12, 2005 and received the PotashCorp
Corporate Award of Excellence. It also received a plaque from the
Workplace Health Safety and Compensation Commission of New
Brunswick for this achievement.
Local Procurement
Goods,' materials and services valued at Cdn $31.5 million were
purchased locally in 2005, 59% of all purchases. Electricity and
natural gas purchases are not included.

PCs POTASH NEW BRUNSWICK
(tonnes KCI) 749,103 781,761 758,684
Employment
Number of employees 329 330 332
Number of female employees 7 7 7
Gender ratio (% female/total employees) 2.1% 2.1% 2.1%
Average tenure (years) 15.4 16.8 17.1
Absenteeism rate (% hours absent) 5.3% 5.8% 4.2%
Employee training provided (hrs per employee) 32 51 50
Safety Performance
Lost-Time frequency (per 200,000 hrs) 0 0 0
Recordable frequency (per 200,000 his) 5.85 3.57 2.24
Greenhouse Gas Emissions
GHG emissions (000 tonnes C02 equivalent) 54.0 47.3 48.3
Normalized GHGs (GHGs/tonne production) 0.07 0.06 0.06
NPRI Air Pollutants (tonnes)
Nitrogen oxides 40.2 46.6 48.0
Carbon monoxide 11.5 37.6 37.3
Particulates (dust) 177.7 166.4 222.7
Volatile organic compounds 149.4 163.9 166.9
Waste to Land (000 tonnes)
Waste salt and clay to mine 1,517.4 1,692.0 1,514.1
Emissions to Water (000 tonnes)
Salt brine to sea (dry basis) 195 264 452
Water Use (000 cubic meters)
River water 548.2 417.4 388.6
Environmental Expenditures ($Cdn)
Operating expenditures $11,696,000 $12,636,800 $13,572,200
Capital expenditures $1, 106,400 $657,700 $659,000
Energy costs($Cdn) $13.5 million $13.4 million $15.5 million
Energy use (TJ) 1,446 1,423 1;456
Energy efficiency (GJ/tonne production) 1.9 1.8 1.9
Procurement
Local purchasing ($Cdn) $13.8 million $23.4 million $31.5 million
Site Performance 73
ROCANVILLE
Box 460, Rocanville, Saskatchewan SOA 3LO [phone]
Stephen J. Fortney, General Manager
[e-mail]
Operations
Rocanville is a conventional underground potash mine, operating
at a depth of 960 meters (3,150 feet). It produces granular and
standard product for agricultural use and standard industrial and
feed-grade product. Annual capacity is 3.04 million tonnes KCI.
Significant Achievements
Rocanville's greatest achievement in 2005 was bringing the
expansion project in on time and under budget. The design called
for a 400,000-tonne increase; the formal test run verified a
700,000-tonne increase.
Community Relations
Employees and local residents expressed concern over the proposed
closing of the mine's private road and the impact that driving an
extra eight kilometers would have on them. Meetings were held with
employees and local municipal councilors and a letter was sent to
all employees outlining the reasons for the closure.
Community Contributions
Cash donations to local community organizations totaled Cdn
$47,850 in 2005. The main recipients were Moosomin Integrated
Health Facility, St. Lazare Athletic Association, Rocanville Thrift Store,
Esterhazy Health Facility and Rocanville Skating Club. Rocanville
Wildlife Association was the key beneficiary of in-kind contributions.
Awards
Rocanville received the Mayor's Choice Award from the Village of
St. Lazare and recognition of safe mining practices from the
Saskatchewan Mining Association.
Environmental Initiatives
More efficient burners installed on the dryers helped reduce
greenhouse gases and energy consumption. More efficient diesel
engines were installed on underground equipment.
Local Procurement
Goods, materials and services purchased locally in 2005 totaled
Cdn $40.5 million, 65% of total procurement. Electricity and natural
gas purchases are not included.
Performance Trends
2003 2004 2005
Annual Production
(tonnes KCI) 1,989,352 1,833,787 2,573,308
Employment
# of employees 324 328 340
# of female employees 19 21 22
Gender ratio (% female/total employees) 5.8% 6.4% 6.4%
Average tenure (years) 18.7 17.1 17.4
Absenteeism rate (% hours absent) 3.8% 3.5% 2.9%
Employee training provided (hrs per employee) 84 92 91
Safety Performance
Lost-Time frequency (per 200,000 hrs) 0.35 0.33 0.31
Recordable frequency (per 200,000 hrs) 2.47 2.01 2.75
Greenhouse Gas Emissions
GHG emissions (000 tonnes C02 equivalent) 69.3 61.8 75.9
Normalized GHGs (GHGs/tonne production) 0.03 0.03 0.03
NPRI Air Pollutants (tonnes)
Nitrogen oxides 57.4 52.5 57.6
Carbon monoxide 491.2 172.4 222.2
Particulates (dust) 261.9 305.6 465.0
Volatile organic compounds 5.77 4.42 7.2
Waste to Land (000 tonnes)
Waste salt to storage 3,230 2,543 3,986
Salt in brine injection well 549 694 665
Water Use (000 cubic meters)
Well water 1,037 1,000 1,161
Environmental Expenditures ($Cdn)
Operating expenditures $5,455,100 $7,265,300 $7,359,900
Capital expenditures $146,000 $389,000 $489,100
Energy
Energy costs ($Cdn) $16.8 million $19.1 million $23.9 million
Energy use (TJ) 2,023 1,863 2,364
Energy efficiency (GJ/tonne production) 1.02 1.02 0.9
Procurement
Local purchasing ($Cdn) $10.0 million $53.8 million $40.5 million
PCs POTASH ROCANVILLE
74 Site Performance
phosphate operations
AURORA
P.O. Box 48, Aurora, North Carolina 27806 [phone]
Richard Atwood, General Manager [e-mail]
Operations
Aurora mines phosphate ore and refines it into phosphate rock.
Mixing the phosphate with sulfuric acid produces phosphoric acid
The division has an annual capacity of 1.325 million tons of
phosphoric acid and 0.175 million tons of phosphate feed.
Significant Achievements
Annual production records were set in 2005 in defluorinated
phosphate, purified phosphoric acid and ammonium polyphosphate.
The plant received certification under the AFIA Safe Feed/Safe
Food program.
Community Relations
Aurora has an active program of engagement with community
leaders and state legislators. Approximately 140 meetings were
held in 2005 on such issues as Norfolk Southern Railroad
abandonment, mine continuation permit, economic development,
and compliance and regulatory standards.
Community Support
Cash donations to local community organizations totaled
$171,310. The main beneficiaries were East Carolina University,
Beaufort County United Way, Aurora Fossil Museum, YMCA and
Historic Bath Foundation.
In-kind contributions totaling $34,000 went to the Salvation Army,
Toys for Tots, Hurricane Katrina Relief Fund, Pamlico County Rescue
Squad and Aurora Fossil Museum, among others.
Awards
In 2005, Aurora received awards for training, community
involvement, safety and environment:
PCS Phosphate and 13 employees received special recognition
from the North Carolina Department of Labor for achievements
under the company's apprenticeship and master craftsman
programs.
Community recognition involved Organization of the Year award from
Beaufort County, the Relay for Life Gold Award, Children's Miracle
Network Sponsor's award, American Red Cross Hero Award, Beaufort
County United Way Sponsor's award and Pamlico County
Community Foundation Key Sponsor.
Environmental awards for the Whitehurst Creek project included the
North Carolina Division of Land Resources Mining Stewardship
Award in the Reclamation category; Interstate Mining Compact
Commission Kenes C. Bowling Non-Coal National Mine Reclamation
Award; and the National Association of State Land Reclamationists
Outstanding Reclamation Award
21 departments received the North Carolina Department of Labor
2005 safety award.
Environmental Initiatives
Aurora reduced internal and external reportable spills in 2005 and
met compliance targets for Notice of Violations.
Local Procurement
Goods, materials and services purchased locally in 2005 totaled
$79.2 million, which represented 56% of total procurement.
Electricity and natural gas purchases are not included.
Performance Trends
2003 2004 2005
Annual Production (tons)
Phosphate rock 3,393,000 4,371,000 4,868,000
Phosphoric acid- 1,013,000 1,122,000 1,155,000
Employment
Number of employees
Number of female employees
Gender ratio (% female/total employees)
Average tenure (years)
Absenteeism rate (% hours absent)
Employee training provided (hrs per employee)
1,033 1,045 1,034
40 41 46
3.9°% 3.9% 4.4%
16.6 16.5 17.5
5.6°% 3.91°% 4.05%
42 66 36
Safety Performance
Lost Time frequency (per 200,000 hrs) 0.28 0.09 0.27
Recordable frequency (per 200,000 hrs) 1.85 1.33 1.35
Greenhouse Gas Emissions
GHG emissions (000 tons COs equivalent) 626.7 525.3 631.5
Normalized GHGs (GHGs/tonne production) 0.6 0.5 0.6
Criteria/Significant Air Pollutants (tons)
Nitrogen oxides 769.8 618.0 699.0
Carbon monoxide 461.7 409.0 410.0
Particulates (dust) 415.0 257.0 309.0
Sulfur dioxide 4,726.6 5,780.0 6,142.0
Ammonia 590 646 659
Hydrogen sulfide 1,542 1,510 1,403
Waste to Land (000 tons)
Gypsum 5,642 6,185 6,381
Water Use (million gallons)
Well water 20,954 21,941 20,427
Recycled water 101,137 121,557 130,893
Environmental Expenditures ($ million)
Operating expenditures $27.0 $29.8 $39.1
Capital expenditures $3.0 $1.7 $2.4
Energy
Energy costs ($) $30.7 million $34.9 million $45.3 million
Energy use (BBtu) 13,640 13,709 14,254
Energy efficiency (BBtu/tonne production) 4.4 3.4 3.2
Procurement
Local purchasing ($) $59.7 million $61.6 million $79.2 million
E AURORA
Site Performance 75
WHITE SPRINGS
P.0. Box 300, 15843 Southeast 78th Street, White Springs, Florida
32096 [phone]
Keith Thornton, General Manager [e-mail]
Operations
White Springs mines phosphate ore and refines it into phosphate
rock. It has a capacity of 4.0 million tons of phosphate rock, 1.2
million tons of phosphoric acid and 0.410 million tons of
phosphate feed. The chemical operations produce 10 products.
Significant Events
The Suwannee River prayon plant was converted from a dihydrate
process to hemihydrate phosphoric acid production, a $13.5-
million project completed and started up in 2005.
The plant received certification under the AFIA Safe Feed/Safe
Food program.
Community Relations
Plant management meets quarterly with the Hamilton County
Commissioners to discuss community issues. It also meets
periodically with state and local environmental organizations
to review progress and status of environmental matters.
Community Contributions
White Springs is a major supporter of the United Way of Suwannee
Valley campaign. In 2005, with employee contributions, it
contributed over $160,000, 25% of the organization's goal. The
division also provides financial support to Hamilton County Youth
Soccer, Kiwanis Club of Jasper and the American Cancer Society.
In-kind contributions totaled $10,450. Beneficiaries included
Suwannee County Schools, Hamilton County Council on Aging,
Florida Sheriffs' Boys Ranch, Hamilton County Housing Consultant
and Doorway to Hope Community Development Youth Group.
Awards
The Swift Creek Mill placed third in the Sentinels of Safety Award
for the large metal/non-metal mill group. Forty of our miners
received the Professional Miner Certificate, given only to miners
who have worked five or more years without a recordable injury.
Both awards were given by Joseph H. Holmes Safety Association.
Environmental Initiatives
Seventy-seven acres in Columbia County at the confluence of
Falling Creek and the Suwannee River were donated to the Suwannee
River Water Management District in 2005. PotashCorp agreed to this
transfer of environmentally sensitive lands as part of its wetland
mitigation program. This parcel is significant to the district because
of the location and its adjacent ownership on both sides.
Energy
The cogeneration plant's 48 megawatts of generating capacity is
enough to supply nearly all the chemical manufacturing operations.
The Suwannee River phosphoric acid plant was converted from a
dihydrate process to the much more energy-efficient hemihydrate
process, which will reduce purchased power by an estimated
$2.4 million per year.
Local Procurement
Goods, materials, and services purchased locally in 2005 totaled
$62.6 million, 71% of total procurement. Electricity and natural
gas purchases are not included.
Performance Trends
2003 2004 2005
Annual Production (tons)
Phosphate rock 2,961,000 3,026,000 3,411,000
Phosphoric acid 856,000 927,000 971,000
Employment
Number of employees 893 943 897
Number of female employees 63 62 56
Gender ratio (% female/total employees) 7.1% 6.6% 6.3%
Average tenure (years) 22 22 23.8
Absenteeism rate (% hours absent) 2.0% 2.7% 4.5%
Employee training provided (hrs per employee) 28 34 31
Safety Performance
Lost-Time frequency (per 200,000 hrs) 0.10 0.37 0.74
Recordable frequency (per 200,000 hrs) 1.61 1.02 1.95
Greenhouse Gas Emissions
GHG emissions (000 tons CO2 equivalent) 192 241 224
Normalized GHGs (GHGs/tonne production) 0.2 0.3 0.3
Criteria/Significant Air Pollutants (tons)
Nitrogen oxides 210 229 223
Carbon monoxide 24 70 65
Particulates (dust) 316 348 371
Sulfur dioxide 2,964 3,701 4,193
Ammonia 326 306 260
Waste to Land (000 tons)
Gypsum 3,171 3,255 3,411
Water Use (million gallons)
Well water 11,717 12,483 10,943
Recycled water 131,162 118,464 111,510
Environmental Expenditures ($ millions)
Operating expenditures $19.8 $25.4 $31.1
Capital expenditures $1.8 $0.7 $0.2
Energy
Energy costs ($) $29.7 million $37.6 million $37.4 million
Energy use (BBtu) 10,086 11,524 11,666
Energy efficiency (BBtu/tonne production) 3.8 4.2 3.8
Procurement
Local purchasing ($) $58.9 million $60.2 million $62.6 million
'E WHITE SPRINGS
8 Site Performance
JOPLIN
P.O. Box 225, 301 State Line Avenue, Joplin, Missouri 64802
[phone]
Paul Shoup, Operations Manager [e-mail]
Operations
This animal feed ingredients plant produces dicalcium phosphate
(DCP) and monocalcium phosphate (MCP) feed supplements, with
annual capacity of 0.179 million tons.
Significant Achievements
Joplin employees completed four years without a lost-time injury.
The plant received certification under the AFIA Safe Feed/Safe Food
program.
Community Support
Cash donations to local community organizations in 2005 totaled
$7,551, mainly to McKinley Elementary School, United Way of SW
Missouri, Newspapers in Education (all local schools), Jasper
County Emergency Services and Joplin Area Chamber of Commerce.
Awards
The site received a Silver Award from the Joplin Area United Way for
employee contributions.
Energy
Natural gas consumption per ton of production was reduced by
12%, compared to 2004.
Local Procurement
In 2005, goods, materials and services purchased locally totaled
$470,300, 51% of all procurement. Electricity and natural gas
purchases are not included.
Performance Trends
2003 2004 2005
Annual Production (tons)
Dicalcium/monocalcium phosphate 97,000 96,200 88,600
Employment
Number of employees 35 33 26
Number of female employees 3 3 2
Gender ratio (% female/total employees) 9% 9% 8%
Average tenure (years) 15.4 16.6 15.1
Absenteeism rate (% hours absent) 1.8% 3.4% 1.7%
Employee training provided (hrs per employee) 24 18 26
Safety Performance
Lost Time frequency (per 200,000 hrs) 0 0 0
Recordable frequency (per 200,000 hrs) 8.47 0 3.8
Greenhouse Gas Emissions
GHG emissions (000 tons C02 equivalent) 25.2 24.7 21.6
Criteria/Significant Air Pollutants (tons)
Nitrogen oxides 9.5 6.6 1.5
Carbon monoxide 7.7 5.3 1.2
Particulates (dust) 39.5 18.4 17.1
Sulfur dioxide 0 0 0
Water Use (million gallons)
River/surface water n/a 3.6 6.7
Well water/city water 39.1 35.6 19.4
Environmental Expenditures ($)
Operating expenditures $141,000 $944,000 $63,200
Capital expenditures $1,114,000 $942,000 $0
Energy
Energy costs ($) $1.2 million $1.3 million $1.36 million
Energy use (BBtu) 171 167 138
Procurement
Local purchasing ($) $1.5 million $1.6 million $470,300
Site Performance 77
MARSEILLES Performance Trends
2660 East US Route 6, Marseilles, Illinois 61341 [phone] 2003 2004 2005
Bob Startzer, Operations Manager [e-mail] Annual Production (tons)
Operations Dicalcium/monocalcium phosphate 166,000 152,000 140,000
This feed plant combines limestone and phosphoric acid to manufacture
dicalcium phosphate (DCP) and monocalcium phosphate (MCP) animal Employment
feed supplements. Its annual capacity is 0.306 million tons. Number of employees 35 34 24
Number of female employees 3 3 2
Significant Achievements Gender ratio (% female/total employees) 9% 9% 8%
The plant received certification under the AFIA Safe Feed/Safe Food Average tenure (years) 13 14 15
program. Absenteeism rate (% hours absent) 2.7% 4.0% 1.1%
Community Relations Employee training provided (hrs per employee) 25 17 35
Plant personnel participated in three meetings with the Marseilles- Safety Performance
Ottawa-Seneca Community Advisory Panel in 2005 that discussed
HAZMAT response, promotion of the chemical industry in Illinois and Lost Time frequency (per 200,000 hrs) 2.8 0 0
a mutual aid response system. Recordable frequency (per 200,000 hrs) 5.6 8.9 7.9
Community Support Greenhouse Gas Emissions
Cash donations to local community organizations totaled $5,005. The GHG emissions (000 tons C02 equivalent) 36.6 34.5 31
main beneficiaries were the United Way, Canal Corridor Association,
Chamber of Commerce, Illinois Special Olympics and Ottawa River Criteria Air Pollutants (tons)
Rescue Squad. Nitrogen oxides 10 9.3 8.5
In-kind contributions totaled $1,100. Recipients include the I&M Canal, Carbon monoxide 8.4 14.5 7.2
where employees have adopted a one-mile stretch of trail, and Particulates (dust) 18.9 18.0 16.6
Marseilles Food Pantry. Water Use (million gallons)
Local Procurement Well water/city water n/a 13.1 13.8
Goods, materials and services purchased locally totaled $482,000, Recycled water n/a 4.3 2.4
66% of all procurement in 2005. Electricity and natural gas

purchases are not included. Environmental Expenditures ($)
Operating expenditures $61,200 $83,300 $38,200
Capital expenditures $0 $74,500 $0
Energy
Energy costs ($) $1.9 million $1.9 million $2.0 million
Energy use (BBtu) 242 231 203
y'
Procurement
Local purchasing ($) $572,000 $508,000 $482,000
PCS PHOSPHATE MARSEILLES
78 Sim Performance -
FOSFATOS DO BRASIL LTDA. Performance Trends
Rod. Padre Manoel da Nobrega km 286,400 2003 2004 2005
Samarita Sao Vicente SP CEP 11301-970, Brasil 55-133-566-1121 Annual Production (tons)
H. Sonny Fernandes, General Manager Dicalcium phosphate 56,000 75,000 76,200
[e-mail]
O
ti Employment
pera
ons
This facility uses imported phosphoric acid and limestone to Number of employees 76 79 93
produce microgranulated dicalcium phosphate (DCP). Its annual -Number of female employees 14 15 17
capacity is 0.121 million tons of this animal feed supplement. Gender ratio (% female/total employees) 18% 19% 18%
Average tenure (years) 3 4 5
Significant Achievements Absenteeism rate (% hours absent) 0.2% 0.1% 0.1%
Fosfatos do Brasil was able to maintain production despite Employee training provided (hrs per employee) n/a* n/a 5
significant market challenges arising from aftosa fever in Mato
Grosso do Sul, Mato Grosso and Parana states. It affected Safety Performance
domestic cattle, poultry and swine feed markets and resulted in Lost Time frequency (per 200,000 hrs) 2.09 0 0
European restrictions on meat imports from Brazil. Recordable frequency (per 200,000 hrs) 2.09 0 0
Community Relations Greenhouse Gas Emissions
In 2005, three meetings were held with community representatives, GHG emissions (000 tons C02 equivalent) n/a n/a 21.1
provincial legislators, city councilors and the mayor to discuss safety Normalized GHGs (GHGs/tonne production) n/a n/a n/a
and security issues, social projects and environmental issues.
C
it
D
ti Criteria Air Pollutants (000 tons)
ommun
y
ona
ons
Cash donations of R$15,000 (about US$6,000) in 2005 went Nitrogen oxides n/a n/a 12
mainly to children's day care centers. Carbon monoxide n/a n/a 1.0
Particulates (dust) n/a n/a 8.0
Environmental Initiatives Sulfur dioxide n/a n/a 0
Environmental initiatives in 2005 involved implementing a
treatment station for rain water, and two filter ditches to ensure Water Use (million gallons)
adequate sewage effluent emission. Well water/city water n/a n/a 7.2
Local Procurement Environmental Expenditures ($)
Purchases of goods, materials and services totaled $195,000 in Operating expenditures n/a n/a $72,300
2005, all of it spent locally. Electricity and natural gas purchases Capital expenditures n/a n/a 0
are not included.
Energy
Energy costs ($) n/a n/a $2.5 million
Energy use (BBtu) n/a - n/a 124
Procurement
Local purchasing ($) $60,000 $76,000 $195,000
*n/a represents "not available"
PCs FoSFATOS DO BRASIL
Sire Peh rmance 78
CINCINNATI
10818 Paddys Run Road, Cincinnati, Ohio 45030 [phone]
Dan Having, Plant Manager [e-mail]
Operations
The plant produces phosphate products for food and technical
applications. The total capacity for all product lines is about
150,000 tons per year.
Significant Achievements
In 2005, the site achieved two years without a lost-time injury and
nine years since the last environmental Notice of Violation or Permit
Non-Compliance.
Community Relations
The plant co-sponsors a Community Advisory Panel. This provided
the forum to address outstanding soil and groundwater
contamination issues (created by previous companies on the site)
and help move the process towards remediation and clean-up.
Other issues discussed in 2005 included safety and logistics
associated with truck and rail traffic; site safety and environmental
performance; and continuing involvement with local schools and
senior citizens.
Community Contributions
The value of cash contributions to local organizations in 2005
was $2,741. Donations went to Crosby Elementary School, Crosby
Township Senior Citizens, Crosby Township Christmas Fund and the
Purple Heart Memorial Fund. The site is a business partner with
Miamitown Elementary School, Crosby Elementary School and
Harrison Junior and Senior schools.
Local procurement
Local purchases of goods, materials and services totaled $652,000
in 2005, which represented 80% of total procurement. Electricity
and natural gas purchases are not included.
Performance Trends
2003 2004 2005
Employment
# of employees 15 17 18
# of female employees 1 2 2
Gender ratio (% female/total employees) 7% 12% 11%
Average tenure (years) 19 18 18
Absenteeism rate (% hours absent) 2.6% 1.6% 1.0%
Employee training provided (hrs per employee) 18 23 47
Safety Performance
Lost Time frequency (per 200,000 hrs) 18.3 0 0
Recordable frequency (per 200,000 hrs) 24.5 5.9 5.2
Greenhouse Gas Emissions
GHG emissions (000 tons C02 equivalent) 2.2 3.0 1.3
Criteria/Significant Air Pollutants (tons)
Nitrogen oxides 4.8 6.4 2.6
Carbon monoxide 0.7 0.9 0.4
Particulates (dust) 0.03 0.04 0.04
Sulphur dioxide 0.01 0.01 0.01
Water Use (million gallons)
Well water/city water n/a 12.1 9.1
Environmental Expenditures ($)
Operating expenditures $0 $162,000 $72,800
Capital expenditures $0 $900 $0
Energy
Energy costs ($) n/a $535,000 $589,000
Energy use (BBtu) n/a 58.9 54.1
Procurement
Local purchasing ($) $550,000 $655,000 $652,000
PCs PHOSPHATE CINCINNATI
O Site Performance
WEEPING WATER
Box 171, Weeping Water, Nebraska 68463 1 [phone]
William Donohue, Operations Manager
[e-mail]
Operations
The Weeping Water facility produces animal feed ingredients;
dicalcium phosphate - 18.5% P monocalcium phosphate -
21% P, and coarse monocalcium phosphate. The plant has an
annual capacity of 0.295 million tons.
Limestone is accessed from an underground mine located between
125 feet and 145 feet below the surface. Approximately 125,000
tons per year of limestone rock are removed annually. Limestone
reserves are expected to last for over 60 years.
Significant Achievements
The plant received certification under the ARA Safe Feed/Safe Food
program.
Community Relations
Management participated in meetings with the Weeping Water city
council and business owners to address concerns and issues about
truck traffic that went through the city, to and from the plant.
The site sponsors underground mine tours during the Limestone
Days celebration and information, about the facility is presented
at the local community center. Employees volunteer to assist with
the tours. The facility participated at the Cass County Fair and
distributed informational material about the site to visitors. In
December, the site participated in the Come Home For the Holidays
local celebration, using safety as a theme.
Community Contributions
The value of cash donations to local community organizations in
2005 was $17,468. The top five recipient organizations were
Weeping Water School, Limestone Days, Daniel J. Gross High
School, City of Weeping Water and Weeping Water Fire and Rescue.
In-kind contributions totaled $8,337. This support went to the Lofte
Community Theatre, City of Weeping Water, Limestone Days,
Weeping Water School and Syracuse Public School
Awards
For the tenth year, an award of honor with distinction was received
from the Safety and Health Council of Greater Omaha. A Safety
Achievement Award was received from the Nebraska Safety Council.
The Sentinels of Safety Award was presented by the Mine Safety
and Health Administration of Nebraska in recognition of the days
worked without a lost workday injury.
Environmental Initiatives
The feed plant expansion of 2004 enabled the site to increase its
production throughput in 2005, using less energy and reducing
GHG' emissions.
Local Procurement
The value of all goods, materials and services purchased locally by
the site in 2005 was $1.1 million. Local purchases accounted for
66% of total purchases. Electricity and natural gas purchases are
not included.
Performance Trends
2003 2004 2005
Annual Production (tons)
Dicalcium/monocalcium phosphate 161,830 134,715 131,506
Employment
# of employees 45 43 31
# of female employees 3 3 3
Gender ratio (% female/total employees) 7% 7% 9%
Average tenure (years) 20 20 20
Absenteeism rate (% hours absent) 4.9% 3.8% 3.7%
Employee training provided (his per employee) 21 22 44
Safety Performance
Lost-Time frequency (per 200,000 hrs) 2.33 2.45 0
Recordable frequency (per 200,000 hrs) 4.65 2.46 3.17
Greenhouse Gas Emissions
GHG emissions (000 tons C02 equivalent) 36.8 42.1 29.6
Criteria/Significant Air Pollutants (tons)
Nitrogen oxides 15 12 12
Carbon monoxide 4 4 4
Particulates (dust) 15 25 19
Water Use (million gallons)
Well water/city water n/a 25.1 24.4
Environmental Expenditures ($)
Operating expenditures $62,000 $48,000 $128,700 -
Capital expenditures $0 $43,000 $9,900
Energy
Energy costs ($) $1.8 million $1.7 million $1.7 million
Energy use (BBtu) 263 234 215
Procurement
Local purchasing ($) $1.1 million $1.8 million $1.1 million
E WEEPING WATER
Site Performance 81
SAVANNAH AMMONIA TERMINAL
Gate 5, Georgia Port Authority, Garden City, Georgia 31408
[phone]
Thomas Tipton, General Manager I [e-mail]
Operations
This is an anhydrous ammonia storage and distribution facility
engaged in the transfer of ammonia from vessels to storage. The
majority of the ammonia stored at the site is later loaded into
railcars and shipped to PotashCorp phosphate operations with
the remaining product sent to customers.
Significant Achievements
Savannah successfully managed the relocation of the unloading
berth.
The site has been injury-free since 1998.
Community Relations
The terminal is a member of the Savannah Chamber of Commerce.
Community Contributions
Cash donations to local community organizations totaled $2,417
in 2005. Principal recipients were Georgia National Guard, Special
Olympics, Good Samaritan Committee of Port Wentworth, American
Cancer Society and the Children's Wish Foundation.
In-kind contributions totaling $1,432 went to Port Wentworth and
Marshpoint elementary schools.
Awards
The facility has been an OSHA Star Site since 1994.
Local Procurement
In 2005, locally purchased goods, materials and services totaled
$1.1 million, about 70% of total purchases. Electricity and natural
gas purchases are not included.
Performance Trends
2003 2004 2005
Annual Throughput (tons)
Ammonia throughput 418,389 448,142 432,546
Employment
Number of employees 8 8 8
Number of female employees 0 0 0
Gender ratio (% female/total employees) 0 0 0
Average tenure (years) 13 14 10
Absenteeism rate (% hours absent) 1% 1.4% 2%
Employee training provided (hrs per employee) 43 54 56
Safety Performance
Lost Time frequency (per 200,000 hrs) 0 0 0
Recordable frequency (per 200,000 hrs) 0 0 0
Greenhouse Gas Emissions
GHG emissions (000 tons C02 equivalent) 1.8 2.5 1.8
Criteria/Significant Air Pollutants (tons)
Nitrogen oxides 1.7 2.7 2.0
Carbon monoxide 0.4 0.5 0.4
Particulates (dust) 0.15 4.4 3.2
Sulfur dioxide 0.31 14.8 10.8
Water Use (million gallons)
Well water/city water n/a 0.6 0.2
Environmental Expenditures ($)
Operating expenditures $0 $154,000 $34,900
Capital expenditures $0 $0 $0
Energy
Energy costs ($) $203,000 $527,000 $608,000
Energy use (BBtu) 22.1 41.8 34.6
Procurement
Local purchasing ($) $1.6 million $1.7 million $1.1 million
O Site Performance
FLORIDA FAVORITE FERTILIZER/
PCS JOINT VENTURE LTD'.
P.O. Box 8000, Lakeland, Florida 33802 [phone]
Jim Bellar, General Manager [e-mail]
Operations*
The operation produces all types of fertilizer for retail: dry bulk
blends, liquid blend and bulk ammoniated products. Storage
capacity is 0.085 million tons of fertilizer products.
Significant Achievements
The P.R.I.D.E. behavioral safety process was implemented.
The Lakeland plant was brought back to normal production after
severe damage from three hurricanes in 2005.
Community Relations
The states where Florida Favorite operates - Florida and Georgia -
suffered from four hurricanes in 2005. The production sites and
their employees assisted in many ways in their communities.
Community Support
Cash donations to local community organizations in 2005 totaled
$4,838. The main beneficiaries were the FFAA agricultural education
program, 4-H programs and local schools.
In-kind contributions to Moultrie Fire Department and Colquitt
County schools totaled $9,668.
Environmental Initiatives
Soil remediation programs are ongoing at the Lakeland and
Moultrie plants to meet_applicabie standards.
Local Procurement
Goods, materials and services purchased locally in 2005 totaled
$5.1 million, 73% of all procurement. Electricity and natural gas
purchases are not included.
Performance Trends
2003 2004 ' 2005
Annual Production (tons)
Fertilizer production 332,300 312,794 378,200
Employment
Number of employees 102 106 91
Number of female employees 19 17 18
Gender ratio (% female/total employees) 19% 16% 17%
Average tenure (years) 10 12 12
Absenteeism rate (% hours absent) 3.3% 4.3% 2.8%
Employee training provided (hrs per employee) 12 15 73
Safety Performance
Lost-Time frequency (per 200,000 hrs) 0.87 0 1.05
Recordable frequency (per 200,000 hrs) 3.49 3.2 4.21
Criteria/Significant Air Pollutants (tons)
Particulates (dust) 3.1 8.0 4.7
Ammonia 1.9 2.2 1.5
Water Use (million gallons)
Well water/city water 1.8 2.1 1.7
Environmental Expenditures ($)
Operating expenditures n/a $246,850 $357,000
Capital expenditures n/a $44,810 $0
Energy
Energy costs ($) $238,000 $356,000 $502,000
Energy use (BBtu) 10.5 30.0 30.6
Procurement
Local purchasing ($) $4.4 million $4.7 million $5.1 million
*As of July 31, 2006 the company completed the sale of Florida Favorite Fertilizer/PCS Joint
Venture LTD, with the exception of the Moultrie, Georgia facility which continued to operate.
Site Performance 83
nitrogen operations
AUGUSTA
23 Columbia Nitrogen Road, Augusta, Georgia 30901
[phone]
Warren Stroman, General Manager [e-mail]
Operations
Augusta produces anhydrous ammonia, urea, nitric acid, ammonium
nitrate, liquid carbon dioxide and liquid fertilizers. It has an annual
capacity of 0.758 million tons of ammonia and is the largest producer
of nitrogen chemical and fertilizer products on the US east coast.
Significant Achievements
The site had no recordable or lost-time incidents in 2005 for
PCS or the nested contractor. It completed 5,945 ADAPT safety
observations and its 23rd ISO 9002-2001 surveillance audit
with no findings issued.
Performance Trends
2003 2004 2005
Annual Production
Ammonia 722,000 732,000 723,000
Urea solids 368,000 405,000 398,000
Urea liquid 451,000 493,000 489,000
Nitrogen solutions 255,000 254,000 281,000
Nitric acid/Ammonium nitrate (liquid) 1,280,000 1,300,000 1,240,000
Employment
Number of employees 118 112 118
Number of female employees 8 9 10
Gender ratio (% female/total employees) 6.7% 8.0% 8.4%
Average tenure (years) 16.8 18.3 16.7
Absenteeism rate (% hours absent) 1.8% 1.6% 1.9%
Employee training provided (hrs per employee) 119 498 192
Community Relations
Augusta is part of a Citizens' Advisory Panel which met four times
to address local concerns, including homeland security, shelter-in-
place and emergency response, and to build awareness of the
company's operations.
The plant is a sponsor of the area United Way campaign and
partners with a number of local educational institutions.
Community Donations
Cash donations to local community organizations in 2005 totaled
$59,536. The main recipients were the Augusta Boxing Club,
Southeastern Natural Sciences Academy, University Health Care
Foundation, Adopt-a-School and the Augusta Museum of History.
In-kind contributions to the Richmond County Sheriffs Department
Bomb Squad, Hornsby Elementary School, East Augusta Middle
School, the United Way and the University Health Care Foundation
totaled $125,000.
Awards
In 2005, Augusta was recognized for its leadership role and
continued financial support by the local United Way campaign
and by the Augusta Boxing Club and its scholarship program.
Environmental Initiatives
The plant commissioned a reverse osmosis unit, thereby reducing
the amount of ammonium nitrate wastewater requiring treatment
and lowering associated energy consumption.
Local Procurement
Goods, materials and services purchased locally in 2005 totaled
$22.8 million, 64% of total spending. Electricity and natural gas
purchases are not included.
Safety Performance
Lost Time frequency (per 200,000 hrs) 0.0 0.73 0.0
Recordable frequency (per 200,000 his) 0.0 0.73 0.0
Greenhouse Gas Emissions
GHG emissions (000 tons C02 equivalent) 1,212 1,224 1,234
Normalized GHGs (GHGs/tonne production) 1.68 1.67 1.71
Criteria/Significant Air Pollutants (tons)
Nitrogen oxides 2.50 2.43 2.25
Carbon monoxide 4.65 4.71 0.80
Emissions to Water (tons)
Ammonia as N 106.4 180.7 97.0
Total nitrogen as N 276.4 395.3 190.6
Water Use (million gallons)
River/surface water 1,948 2,055 1,992
Recycled water 757 757 757
Environmental Expenditures ($ millions)
Operating expenditures $3.9 $4.3 $4.8
Capital expenditures $0.1 $0.4 $2.4
Energy
Energy costs ($) $151.0 million $177.0 million $228.0 million
Energy use (BBtu) 26,277 27,206 26,379
Energy efficiency (MMBtu /tonne production) 40.1 41.0 40.2
Procurement
Local purchasing ($) $10.5 million $14.8 million $22.8 million
Iy ?!I
PCS NITROGEN AUGUSTA
O Site Puformance
GEISMAR
Performance Trends
P. 0. Box 307, Geismar, Louisiana` 70734 [phone]
Fred Elliott, General Manager [e-mail]
Operations
Geismar produces urea, ammonium nitrate and UAN nitrogen
solutions and phosphate fertilizer and industrial products, and is
the largest producer of nitric acid in the United States. Production
of ammonia has been suspended indefinitely. The annual
phosphoric acid capacity is 0.223 million tons.
Significant Achievements
Significant achievements in 2005 included the successful start-up
of urea and UAN production units, and reaching 16 years without
a lost-time accident.
2003 2004 2005
Annual Production (tons)
Ammonia 128,000 0 0
Nitrogen solutions 276,000 - 0 42,000
Nitric acid/Ammonium nitrate (liquid) 649,000 575,000 625,000
Employment
Number of employees 205 132 136
Number of female employees 20 20 20
Gender ratio (% female/total employees) 10% 15% 14%
Average tenure (years) 14.3 14.3 14.2
Absenteeism rate (% hours absent) 4.24% 3.08% 2.89%
Employee training provided (hrs per employee) 81 117 249

Community Relations y
Geismar participates in two Community Advisory Panels which met Lost-Time frequency (per 200,000 hrs) 0 0 0
twice a month in 2005. Issues discussed included updated plant Recordable frequency (per 200,000 hrs) 1.5 0 0.68
reports, employment, expansions, SHE performance, TAR, taxes and Greenhouse Gas Emissions
shutdowns. GHG emissions (000 tons C02 equivalent) 1,399 1,057 1,137
Community Donations Normalized GHGs (GHGs/tonne production) 9.9 n/a* n/a*
Cash contributions to local community organizations totaled about Criteria/Significant Air Pollutants (tons)
$200,000 in 2005. The plant is a sponsor of the area's United Way

campaign, March of Dimes, Special Olympics, American Red Cross Nitrogen oxides 462 167 170

and Salvation Army. Carbon monoxide 147 160 203
In-kind contributions in 2005 totaled $75,000, up from the Emissions to Water (tons)
previous year due to hurricane relief activities. The main recipients Ammonia as N 22.0 11.2 31.9
were the March of Dimes, Adopt-a-School, Red Cross, Salvation Total nitrogen as N 27.7 55.1 106.0
Army and Army National Guard. Water Use (million gallons)
Awards River/surface water 1,026 2,731 1,035
In 2005, Geismar received an award under the Louisiana Chemical Recycled water 1,927 1,711 2,000
Association's Safe Program for environmental performance, Environmental Expenditures ($ millions)
specifically for a significant reduction in TRI emissions.
Operating expenditures $5.4 $6.1 $7.2
PCS Nitrogen regular and contract employees received two safety Capital' expenditures $3.9 $1,9 $0.8
awards from the Louisiana Chemical Association Safe Program: for
total incident recordable rate of less than 0.75, and for relative Energy
improvement greater than 25%, as compared to OSHA statistics Energy costs ($) $35.6 million $10.9 million $12.8 million
over the last four years. Energy use (BBtu) ' 5,339 1,031 1,683
Energy efficiency (MMBtu /tonne production) 46.0 n/a* n/a*
Environmental Initiatives
The site installed a steam generator to make electricity and reduce Procurement
use of natural gas, thus reducing greenhouse gas emissions. Local' purchasing ($) $28.4 million $25.0 million $21.7 million
Local Procurement

Goods, materials and services purchased locally in 2005 totaled *Due to indefinite shutdown of ammonia production.
$21.7 million, 81% of total procurement. Electricity and natural gas

purchases are not included. Safet
Performance
GEISMAR
Site Performance O
LIMA
Performance Trends
1900 Fort Amanda Road, Lima, Ohio 45805 1 [phone] 2003 2004 2005
Don Johnson, General Manager [e-mail] Annual Production (tons)
Operations Ammonia 562,000 510,000 420,000
Innovene operates the Lima facility under an operational agreement Urea liquid 364,000 305,000 283,000
with PotashCorp. The site produces ammonia, nitric acid, urea` solutions, Urea solids 309,000 263,000 248,000
prill and granular urea, ammonium nitrate solutions and UAN. It has an Nitrogen solutions 132,000 128,000 110,000
annual capacity of 0.597 million tons of ammonia.The plant is ISO Nitric acid/ammonium nitrate (liquid) 174,000 177,000 108,000
9001 certified. Employment
Significant Achievements # of employees (PotashCorp employees only) 5 5 4
The site's most significant achievements in 2005 were successful Average tenure (years) 15 11 11
completion of the turnaround and associated capital projects which Gender ratio (% female/total employees) n/a 20% 20%
transformed the plant, reducing energy consumption and restoring Employee training provided (hrs per employee) n/a 79 12
maximum capacity in ammonia of at least 1,800 TPD. Safety Performance
Lima partners with Science Enhancement for Science Education Lost-Time frequency (per 200,000 hrs) 0 0 0
(SESA). In 2005 the SESA program celebrated the 200,000th student Recordable frequency (per 200,000 hrs) 0.74 2.94 2.29
participant since its inception in 1990.
Greenhouse Gas Emissions
Community Relations
The plant has maintained an active environmental Citizens Advisory GHG emissions (000 tons COZ equivalent) 1,082 995 974
Normalized GHGs (GHGs/tonne production) 1.7 1.8 2.3
Committee (CAC) for many years. The CAC meets once per quarter
and reviews all environmental issues, including emissions, permitting, Criteria/ Significant Air Pollutants (tons)
reportable quantity reports and operations. Nitrogen oxides 1.60 1.48 1.33
The site has a partnership with the Ottawa River Coalition. Under the Carbon monoxide 0.23 0.25 0.23
Adopt-a-Road program, services were provided for a three-mile stretch Ammonia 1.09 0.96 0.86
of road that borders the plant and a recreational bike path along the Emissions to Water (tons)
Ottawa River. The plant made a $1,000 donation to the Ottawa River
Coalition in 2005. Total nitrogen as N 48.7 50.2 32.4
Community Donations Water Use (million gallons)
The plant is a sponsor of the area's United Way campaign. The value Well water 1,358 1,036 1,076
of cash donations to local community organizations in 2005 was River water 910 694 721
$29,591, with most of it going to Science Enhancement for Science Recycled water 1,493 1,455 - 1,510
Education, 4H Extension Council, Allen County Junior Fair, Auction Art Desalinated/municipal water 597 582 604
Space Lima and the American Heart Association. Environmental Expenditures ($000)
Awards Operating expenditures $479 $457 $520 "
Lima received recognition in The Lima News for a $10,000 donation Capital expenditures 0 0 $34
to Allen County 4-H program and for sponsoring teachers to attend
the annual Teacher, Industry & Environment (TIE) Conference. Energy
Energy costs ($) $91 .7 million $120.4 million $128.1 million
It received another Thoroughbred award from Norfolk Southern Railroad Energy use (BBtu) 22,705 20,295 17,653
for no hazardous material release in all of the shipments made in 2005. Energy efficiency (MMBtu/tonne production) 44.5 43.9 46.3
The site was given three safety awards from the National Petrochemical
and Refiners Association. Procurement
Lima Chemicals was also selected to receive the Ohio Chemistry Local purchasing ($) $10.3 million $11.1 million $12.5 million
Technology Council's 2005 Excellence in Environmental, Health, Safety
and Security Performance Award. The award recognizes the site's i
ongoing effort, begun in 2001, to update the underground injection well
system. It also recognizes Lima's Body Mechanics & Stretching program
implemented in 2005.
Al.
Energy Initiatives
After the turnaround and capital projects were completed, energy
performance improved significantly, by at least two MMBtu per tonne
of production.
Local Procurement
The value of all goods, materials and services purchased locally in
2005 was $12.5 million, which represented 81% of total procurement.
Electricity and natural gas purchases are not included.
LIMA
Sae Pe'for.--
TRINIDAD Performance Trends
Atlantic Avenue, PO Bag 201, Point Lisas, Couva, Trinidad 1 2003 2004 2005
[phone] Annual Production (tons)
Ian E. Welch, Managing Director I [e-mail] Ammonia - 1,939,000 2,024,000 2,080,000
Operations Urea solids 713,000 682,000 824,000
Trinidad produces ammonia and urea solids. It has an annual Employment
capacity of 2.04 million tons of ammonia. Number of employees 395 395 406
Significant Achievements Number of female employees 29 29 29
Trinidad achieved five million safe work hours in 2005, and five Gender ratio (% female/total employees) 7.3% 7.3% 7.1%
years without a lost-time injury. Average tenure (years) 1
0 11 12
Absenteeism rate (% hours absent) 0
3.5/0 3.7% 3.4%
It completed the revamp of two of its four ammonia plants, Employee' training provided (hrs per employee) 187 295 149.4
increasing production by approximately 185,000 tons per year. The
revamps were successfully engineered, managed and executed by Safety Performance
in-house teams, reducing the cost and developing intellectual Lost-Time frequency (per 200,000 hrs) 0 0 0
capital within the facility. Recordable frequency (per 200,000 his) 0.45 - 0.23 0.23
The site also set production records in 2005: total production _ Greenhouse Gas Emissions
of 2.9 million tons, ammonia production of 2.08 million tons and GHG emissions (000 tons C02 equivalent) 3,592 3,719 3,785
urea production of 0.824 million tons. Normalized GHGs (GHGs/tonne' production) 1.7 1.7 1.7
Community Relations Criteria/ Significant Air Pollutants (tons)
The Community Awareness and Emergency Response Committee, Nitrogen oxides 2,208 2,349 2,271
composed of corporate neighbors, residents and regulatory agency Carbon monoxide 3,264 3,434 3,442
representatives, has operated on the Point Lisas Industrial Estate Ammonia 4,440 3,512 5,030
since 1999. It met 12 times in 2005, discussing safety, health and
environment best practices; development of a community risk Emissions to water (tons)
assessment; estate emergency management; community outreach Ammonia as N 231.3 162.7 193.0
initiatives; training seminars for community groups and teachers; Methanol 32.3 30.9 37.3
and restructuring of community communication strategies. Water Use (million gallons)
Trinidad was able to respond positively to community concerns Desalinated/municipal water 1,325 1,301 1,365
about establishing a community emergency notification system and Recycled water 552 552 552
creating employment opportunities for persons living in the environs
of the Point Lisas Industrial Estate. Environmental Expenditures ($000)
Operating expenditures $348 $589.3 $541
Community Contributions Capital expenditures $423 $605 $0
Cash donations to local community organizations in 2005 totaled
$63,000. The plant supports two local steelband orchestras: PCS Energy
Starlift Steel Orchestra and Lady Hochoy Music Makers. Other Energy costs ($) $166.9 million $219.5 million $255.3 million
beneficiaries included the Cunupia Games (school sports) and the Energy use (BBtu) 79.4 81.1 82.4
annual HSSE Conference of the American Chamber of Commerce., Energy efficiency (MMBtu/tonne production) 45.1 44.1 43.7
In-kind contributions of $35,000 benefited the Terry Fox Run, Procurement
Energy Challenge, Sugar & Energy Festival, Women Against Breast Local purchasing ($) $25.8 million $25.8 million $35.2 million
Cancer Run and California Government School
Energy Initiatives
The 03 and 04 ammonia plant revamps increased production rates
while reducing energy consumption per ton of ammonia produced.
While overall energy consumption increased with production, the
improved energy efficiency substantially offset that increase.
Local Procurement
Local purchases totaled $35.2 million in 2005, 37% of total
procurement. Electricity and natural gas purchases are not
included.
PCS !TRINIDAD
Glossary 87
glossary
GENERAL TERMS
Cogeneration
A secondary step in a process utilizing excess energy produced in
a combustion cycle.
Global Reporting Initiative
The Global Reporting Initiative (GRI) is an independent institution
whose mission is to develop and disseminate globally applicable
sustainability reporting guidelines. This year, PotashCorp has
adopted new draft G3 guidelines established by the GRI, which
provide the framework for this report. For more information, visit
www.globaIreporting.org.
OPERATING TERMS
Capacity
The amount of a given nutrient PotashCorp can produce annually.
Feedstock
A basic product that is used to produce several different products.
Salt brine
Water containing dissolved potassium and sodium salts, which may
be used to carry undissolved salts as a brine slurry.
MEASUREMENTS
Short ton
2,000 pounds, used for sales in the United States. To convert to
metric tonnes, divide by 1.1023.
Tonne
A metric measurement of 2,204.6 pounds, used for sales outside
the United States. To convert to short tons, multiply by 1.1023.
British thermal unit (Btu)
A unit of heat equal to the amount of heat required to raise one
pound of water one degree Fahrenheit.
BBtu
Billion British thermal units.
MMBtu
Million British thermal units.
Joule (J)
A unit of energy equal to the amount of work done by a force of
one Newton acting through a distance of one meter.
Giga joule (GJ)
One billion joules.
Tera joule (TJ)
One trillion joules.
Watt (W)
A unit of electric, mechanical or thermal power equal to one joule
persecond.
Megawatt (MW)
One million watts.
PRODUCT TERMS
Potash
KCI Potassium chloride
Phosphate
P2O5 Phosphoric acid
DAP Diammonium phosphate, 46% P205 (solid)
DFP Defluorinated phosphate
DCP Dicalcium phosphate or Dical
MCP Monocalcium phosphate or Monocal
Nitrogen
Anhydrous ammonia, 82% N (gas, liquid)
Nitric acid (liquid)
Ammonium nitrate, 34% N (solid, liquid)
Urea, 46% N (solid)
UAN nitrogen solutions, 28-32% N (liquid)
EMISSIONS TERMS
CH, Methane
N20 Nitrous oxide
NPRI National Pollutant Release Inventory (Canada)
SAFETY TERMS
Frequency
Number of injuries (recordable or lost-time) multiplied by
200,000, divided by total hours worked.
Recordable injury
Medical Injury or Modified Work Injury or Lost Time Injury.
Medical injury
A work-related injury that is a non-lost-time or non-modified work
activity but requires medical treatment beyond first aid.
Modified work injury
A work-related injury where a Licensed Health Care Provider or the
employer recommends that the employee not perform one or more
of the routine functions of the job or not work the full workday that
the employee would have otherwise worked.
Lost-time injury
A work-related injury that causes the injured person to be unable
to return to work on his/her next scheduled workday after the day
of the injury, because he/she is unfit to perform any duties.
This document contains forward-looking statements. These statements are based on certain factors and
assumptions as set forth in this document, including foreign exchange rates, expected growth, results of
operations, performance and business prospects and opportunities. While the company considers these
factors and assumptions to be reasonable, based on information currently available, they may prove to
be incorrect. A number of factors could cause actual results to differ materially from those in the forward-
looking statements, including, but not limited to: fluctuations in supply and demand in fertilizer, sulfur,
transportation and petrochemical markets; changes in competitive pressures, including pricing pressures;
risks associated with natural gas and other hedging actfvities; changes in capital markets; changes in
currency and exchange rates; unexpected geological or environmental conditions; and government policy
changes. Additional risks and uncertainties can be found in our 2005 annual report to shareholders and in
filings with the U.S. Securities and Exchange Commission and Canadian provincial securities commissions.
Forward-looking statements are given only as at the date of this document and the company disclaims
any obligation to update or revise the forward-looking statements, whether as a result of new information,
future events or otherwise.
O Corporate Information
corporate information
CORPORATE OFFICERS AND KEY MANAGEMENT CORPORATE OFFICES
William J. Doyle PotashCorp
President and Chief Executive Officer 122 - 1st Avenue South, Suite 500
James F. Dietz Saskatoon, SK Canada S7K 7G3
Executive Vice President and Chief Operating Officer Phone: [phone]
Wayne R. Brownlee PotashCorp
Executive Vice President and Chief Financial Officer 1101 Skokie Boulevard, Suite 400`
Northbrook, IL 60062
Betty-Ann L. Heggie Phone: [phone]
Senior Vice President, Corporate Relations
Barbara Jane Irwin For information regarding sustainability initiatives,
Senior Vice President, Administration please contact:
Robert A. Jaspar Thomas C. Pasztor
Senior Vice President, Information Technology Senior Director, Corporate and Government Relations
Phone: [phone]
Joseph A. Podwika [e-mail]
Senior Vice President, General Counsel and Secretary
G. David Delaney For more information about management and the
President, PCS Sales Board of Directors, see the company website at
Garth W. Moore www.potashcorp.com/interested_in_potashcorp/management.
President, PCS Potash
Thomas J. Regan, Jr.
President, PCS Phosphate
Stephen F. Dowdle
Senior Vice President, Fertilizer Sales, PCS Sales
Daphne J. Amason
Vice President, Internal Audit
Karen G. Chasez
Vice President, Procurement
John R. Hunt
Vice President, Safety, Health and Environment
Denis A. Sirois
Vice President and Corporate Controller
Corporate Information 89
? Ir
BOARD OF DIRECTORS
Frederick J. Blesi, of Glenview, Illinois, is a retired Chairman
and CEO of the Phosphate Chemicals Export Association Inc.
(PhosChem), principal exporter of US phosphate chemicals.
Before joining PhosChem, he was Vice President, International
with International Minerals and Chemical Corporation. He is a
director of the Evans Scholars Foundation and The Western Golf
Association. He joined the PCS Inc. Board in 2001. (2,5)
William J. Doyle, of Winnetka, Illinois, is President and CEO of
Potash Corporation of Saskatchewan Inc. He became President of
PCS Sales in 1987, after a career with International Minerals and
Chemical Corporation. He is Chairman of The Fertilizer Institute
and the Potash & Phosphate Institute and Vice Chairman of
Canpotex Limited. Mr. Doyle is on the College Board of Advisors at
Georgetown University. He joined the PCS Inc. Board in 1989. (1)
John W. Estey, of Glenview, Illinois, is President and CEO of S&C
Electric Company. He is a member of the Board of Governors of
the National Electrical Manufacturers Association, a director of the
Executives' Club of Chicago, and a member of the Dean's Advisory
Board at the Kellogg School of Management at Northwestern
University. He joined the PCS Inc. Board in 2003. (3,4)
Mary Mogford, of Newcastle, Ontario, is a Corporate Director and
a former Ontario Deputy Minister of Finance and Deputy Minister
of Natural Resources. She is a director of Falconbridge Ltd. and
MDS Inc., and a member of the Altamira Advisory Council. She
is a Fellow of the Institute of Corporate Directors (ICD) and an
accredited director under the ICD/Rotman School of Business
Directors' Education Program. She joined the PCS Inc. Board in
2001. (2,5)
Paul J. Schoenhals, of Calgary, Alberta, is President and CEO of
Enform, a petroleum industry safety and training service. He is a
former Member of the Legislative Assembly and Cabinet Minister
in Saskatchewan and was Chairman of Potash Corporation of
Saskatchewan, the Crown corporation, from 1987 to 1989. He
joined the PCS Inc. Board in 1992. (3,4)
E. Robert Stromberg, QC, of Saskatoon, Saskatchewan, was
formerly associated with the Saskatchewan law firm Robertson
Stromberg Pedersen. He is a director of NorSask Forest Products
Inc, and Hitachi Canadian Industries Ltd. and holds the rank
of Honorary Lieutenant-Colonel of the North Saskatchewan
Regiment. He joined the PCS Inc. Board in 1991. (1,2,4)
FF?
t'
i
i ?.
Wade Fetzer III, of Glencoe, Illinois, is Retired Partner with the
investment banking firm Goldman Sachs. He sits on the boards
of Sphere Communications, Northern Star Broadcasting,
University of Wisconsin Foundation, Rush-Presbyterian St. Luke's
Medical Center and Sinochem Hong Kong Holdings Limited
(Sinofert). He is also on the Kellogg Alumni Advisory Board. Mr.
Fetzer joined the PCS Inc. Board in 2002. (2,3)
Dallas J. Howe, of Calgary, Alberta, is owner and CEO of DSTC Ltd.,
a technology investment company, and a director of Advanced
Data Systems Ltd. and the Saskatchewan Wheat Pool. A director of
the PCS Crown corporation from 1982 to 1989, he joined the PCS
Inc. Board in 1991 and was elected Chair in 2003. (1,2)
Alice D. Laberge, of Vancouver, British Columbia, is a Corporate
Director and the former President and CEO of Fincentric
Corporation, a global provider of software solutions to financial
institutions. She was previously Senior Vice President and Chief
Financial Officer of MacMillan Bloedel Limited, and is a director
of the Royal Bank of Canada, Catalyst Paper, the United Way of
the Lower Mainland and St. Paul's Hospital Foundation. She
joined the PCS Inc. Board in 2003. (4,5)
Jeffrey J. McCaig, of Houston, Texas, is Chairman and CEO of
Trimac Holdings, a bulk trucking and third-party logistics company.
Prior to that, he practiced law, specializing in corporate financing
and securities. He is a director of Orbus Pharma Inc., The
Standard Life Assurance Company of Canada and Stoneham
Administration Inc. He joined the PCS Inc. Board in 2001. (3,5)
Jack G. Vicq, of Saskatoon, of Saskatoon, Saskatchewan, is
Professor Emeritus of Accounting, University of Saskatchewan.
He is a past Associate Dean of Commerce at the university and
was responsible for the Centre for International Business Studies.
He formerly held the A.W. Johnson Distinguished Chair in Public
Policy in the Saskatchewan Department of Finance. He joined
the PCS Inc. Board in 1989. (1,5)
Elena Viyella de Paliza, of the Dominican Republic, is President
of Inter-Quimica, S.A., a chemicals importer and distributor,
Monte Rio Power Corp and Indescorp, S.A. She is president of the
Dominican Business Council, a member of the board of the Inter-
American Dialogue and past president of the Dominican Stock
Exchange, Dominican Manufacturers Association and the National
Agribusiness Board. She joined the PCS Inc. Board in 2003. (1,4)
Committees:
(1) Executive Committee
(2) Corporate Governance and Nominating Committee
(3) Compensation Committee
(4) Safety, Health and Environment Committee
(5) Audit Committee
Re: new cd of aerials
Subject: Re: new cd of aerials
From: John Dorney <[e-mail]>
Date: Sun, 14 May 2006 14:40:06 -0400
To: [e-mail]
CC: "Walker, William T SAW" <[e-mail]>, "Lamson, Brooke SAW"
<[e-mail]>, [e-mail], [e-mail],
[e-mail], David Cox <[e-mail]>, [e-mail], "Lekson, David M
SAW" <[e-mail]>, Derb Carter <[e-mail]>,
[e-mail], [e-mail], [e-mail],
[e-mail], [e-mail], [e-mail],
[e-mail], [e-mail], Pete [e-mail], Richard Atwood
<[e-mail]>, [e-mail], [e-mail], "Finch, Robert A SAW"
<[e-mail]>, "smtp-Sechler, Ron" <[e-mail]>,
[e-mail], "Jones, Scott SAW" <[e-mail]>,
[e-mail], [e-mail], [e-mail], [e-mail],
[e-mail], [e-mail], Tom Reeder <[e-mail]>
After reading the initial email, Tom's response and then this reply, I feel compelled to
say a few thing mainly from three persectives - 1) as someone who was part of the
previous PCS (TG) permit process, 2) wetland and stream mitigation and 3) the proposed
Major Variance from mitigation for the buffer rules. I do not mean this response to be
argumentative but rather illustrative of the process as I see it to date. I have copied
everyone on this email since Mike sent it to everyone initially.
1) openness of the process to date - In my opinion, the Corps (and Tom Walker in
particular) has been very open, willing to have all sides have their moment in the sun
with respect to their issues and to seek to find accomodation while still moving the
process forward. My experience with the process this time as opposed to last time, is
that it is a much better and more open process this time than it was several years ago.
This is not to say that it is perfect or fast - anytime one tries to involve as large a
group as we have, it will move slowly and not smoothly. That is just the nature of
working in a large group on a contentious issue. Again, I believe that Tom Walker has
shown great patience and leadership throughout the process and I thank him for that.
2) Mitigation - I agree with Tom in that PCS to date has done good, up-front
mitigation. I wish all our public and private mitigators could do as much and as well.
At an earlier meeting, I said much the same thing and I still believe it. Now, we have
all learned much about wetland and stream mitigation in the intervening years (for
instance, the new coastal plain headwater stream mitigation policy) and I fully expect
that the newest mitigation will reflect that knowledge. However, I believe (as I said at
an earlier meeting) that it is neither proper nor accurate to criticize the mitigation
that PCS did for the last permit but at the same time, I expect that the next round of
mitigation will be better. Indeed, it our responsbility to make sure that it is better.
3) Major Variance from the Buffer rules - Just to clarify, the EMC did not approve the
Major Variance because in their view, the request for a Variance was not timely since we
(the agencies) had not finished (or really begun) the avoidance and minimization
process. Therefore, it is not clear how much buffer mitigation will be needed. That
decision is clearly a policy call which DWQ supports. The EMC did pass a sense of the
EMC statement which expressed support for the concept of flexible buffer mitigation and
explicitly told PCS and DWQ staff to come back to them if needed once the amount of
mitigation needed was clearer. The EMC decision had nothing to do with the idea of
buffer mitigation, just its timing. If folks are interested in seeing that sense of the
EMC, please see the attachment.
Now having said all of this, it is clear that the real work on this project is just
beginning - that is, the sifting and winnowing of alternatives to determine what is a
practical alternative. I expect that DWQ will be fully engaged in that discussion and
will be developing another alternative for PCS to analyze soon (as soon as I can find
some time!). As Tom stated, the draft EIS is far from the end of the process - in fact,
it is the formal beginning. I and the rest of DWQ look forward to continuing to work
with the agencies, public and PCS under Tom's leadership to eventually issue a
Certification and buffer approval of which we can be proud.
1 of 6 5/15/2006 10:20 AM
Re: new cd of aerials

Mike [e-mail] wrote:
Tom:
Thanks for your reply. I was just trying to give you a heads up that it
looks like we might have to recommend permit denial when the time comes. I
thought you and the other team memebers and the applicant would like to
know. This is a very serious permit from our point of view because of the
potential for negative consequence to the environment. It is quite
possible that we and our respective agencies may look at this situation
differently.
The credentials of your economist has never been in question. The best
economist in the world can not verify a model if the input is sole source
unless making the assumption based on good faith that the input is correct.
Unless the input is gained from independent sources such as national
industry averages or from data independent from the applicant which has an
inherent bias it is based on trust. Any model is no better than the
quality of the input data it is supplied with.
The darft EIS should only contain practicable or feasable alternatives.
What good does it do for any of us to recommend an alternative only to have
the COE later determine it is not practicable. It does not make sense.
We can only base our procedure on past experience. Your agency has ignored
USFWS comments in the past (I am surprised you are not aware of this) and
our experience is that we are most effective at the Draft EIS stage. I
understand from previous permit actions that we normally have good reason
to question input data from applicants.
NC has recently had to close the river herring fishery. Our estuarine
system is in serious trouble. The NC estauarine system is a system of
national significance. NC has the second largest estuaury in the US
excluding Alaska based on surface acreage and the third largest based on
volume. It has one of the oldest recognized EPA Bay Estuary Programs in
the US. NC estaurine dependent fisheries are historically of national
prominence and are well documented. Further degradation of wetland areas
adjacent to estuarine resources must be examined thru a microscope. I
thought the agencies with jurisdictional responsibilitiers over our fishery
resources have been abundantly clear on this.
Please be advised that the USFWS has legal authority on this matter as do
many of the other commenting agencies. We also have the legal authority
under the Fish and Wildlife Coordination Act to consider State concerns
other than those specifically granted under the Clean Water Act. If you
are interested in that legislation it should be in the federal law books in
your office or portions of the Act are available on the internet.
Thanks,
Mike
"Walker, William
SAW"
<William.T.Walker
@saw02.usace.army
.mil>
<Mike [e-mail]>
To
T
05/12/2006 11:08
AM
cc
<[e-mail]>,
<[e-mail]>,
<[e-mail]>,
<[e-mail]>, "Lekson,
David M SAW"
<[e-mail]
2 of 6 5/15/2006 10:20 AM
Re: new cd o f aerials
1>,
<[e-mail]
>, <[e-mail]>,
<[e-mail]>,
<[e-mail]>,
<[e-mail]>,
<[e-mail]>,
<[e-mail]>,
<[e-mail]>,
<[e-mail]>,
<[e-mail]>,
<[e-mail]>,
"smtp-Sechler, Ron"
<[e-mail]>,
<[e-mail]_>_, "Jones,
Scott SAW"
<[e-mail]>,
<[e-mail]>,
<[e-mail]>,
<[e-mail]>,
<[e-mail]>,
<Pete [e-mail]>,
<Wilson [e-mail]>,
<Tom [e-mail]>, "David
Cox" <[e-mail]>,
"Derb Carter" <[e-mail]>,
"Richard Atwood"
<[e-mail]>, "Finch,
Robert A SAW"
<[e-mail]
1>, "Lamson, Brooke SAW"
<[e-mail]
Subject
RE: new cd of aerials
Mike,
It is indeed possible that the draft EIS may not include the Corps final
determination on practicability. As you are aware, NEPA requires
exploration
of an adequate range of reasonable alternatives. The determination that no
other less environmentally damaging practicable alternative exists is part
of
the CWA 404(b)(1) analysis. The applicant has supplied detailed cost model
information for each alternative and the Corps has had a professional
Economist with over 20 yrs experience as well as our Office of Counsel and
various project managers reviewing and analyzing the cost information
provided. Your assertion that we are "blindly" accepting the applicants
input is simply not true. This same information has been provided to you
and
all other members of the team and will be included in the DEIS. We welcome
any and all to review and provide comment. The draft will also include
discussion of the information we propose to use in making our
practicability
decision as well as the applicants position on practicability and their
reasoning.
It seems you view the release of the Draft as the end of the true
commenting
period but, as I repeatedly tried to explain to you, the release of the
3 of 6 5/15/2006 10:20 AM
Re: new cd of aerials
DEIS
will begin the process of formal agency and public input. Regulation
implementing NEPA, found at 40CFR Part 1503.1(a) states "After preparing
the
draft environmental impact statement and before preparing a final
environmental impact statement the agency shall: (1) Obtain the comments
of
any Federal agency which has jurisdiction by law or special expertise with
respect to any environmental impact involved...".
You may be correct that the team has not completely fulfilled the
requirements of the Fish and Wildlife Coordination Act. That was never the
intent of this team. This team was assembled to identify to the extent
possible, all relevant issues which need be addressed and to aid the Corps
and the applicant in ensuring that a reasonable range of alternatives are
explored. This team does not sign off on concurrence points nor have we
ever
asked for formal agency comment. The assertion that the comments of USFWS
or
any group or agency have been or are likely to be ignored in this process
is
without merit.
I will not try again to explain to you PCS' petition to the EMC nor the
EMC's
finding. I suggest you talk with NCDWQ regarding that matter. I will say
with all certainty, that the decision of the EMC regarding the State's
Buffer
Rules, no mater what it may be, is not related to and will have no
influence
over the Corps decision on whether all appropriate and practicable
mitigation
has been undertaken.
Regarding the timing of any required mitigation, you are misstating my
comments and our conversation. You expressed the opinion, as I recall,
that
the applicant should be required to provide all compensatory mitigation
prior
to undertaking any work on any alternative permitted. I commented that
some
proposed alternatives are in excess of 30 years and it is entirely possible
that the applicant would not be required to provide mitigation 30 years in
advance of impacts. That is NOT to say that the applicant will not be
required to provide mitigation in advance of impacts to the extent
practicable. In fact, I specifically told you that it is highly likely
that
any permit would be conditioned with strict mitigation timelines and
definite
mitigation milestones to be accomplished in advance of impacts. You
reference "business as usual" and the last permit action. I would remind
you
that the applicant did provide the compensatory mitigation for that permit
in
advance of all impact. In fact, the mitigation compensating for impacts to
occur over the next 4 years has been "in the ground" for more than 11 years
and has been fully released from any further monitoring requirements. No
other permittee in this state has matched that.
Contrary to the opinion you express in your email, I feel that the team
approach has served a valuable purpose and I assure you that the Corps does
value the work that this team has accomplished and I strongly feel that
input
from this team is crucial in forming the Corps final decision. I fel that
alarmist e-mail are counterproductive to this process. I have always
invited
and, I hope, encouraged any member of this team to bring issues forward at
anytime. It is unfortunate that you were not able to attend our last
meeting
414.
4 of 6 5/15/2006 10:20 AM
Re: new cd of aerials
11
but if you would like to assemble the team and/or any other group to
further
discuss this issue, I welcome you to do so.
-----Original Message-----
From: Mike [e-mail] [mailto:Mike [e-mail]]
Sent: Wednesday, May 10, 2006 6:33 PM
To: [e-mail]
Cc: [e-mail]; [e-mail]; [e-mail];
[e-mail]; Lekson, David M SAW;
dmcnaught@environmentaldefense_org; [e-mail];
[e-mail]; [e-mail]; [e-mail];
[e-mail]; [e-mail]; [e-mail];
[e-mail]; [e-mail]; [e-mail];
smtp-Sechler, Ron; [e-mail]; Jones, Scott SAW;
[e-mail]; [e-mail]; [e-mail];
[e-mail]; Walker, William T SAW; Pete [e-mail];
Wilson [e-mail]; Tom [e-mail]
Subject: Re: new cd of aerials
Hello everyone,
I just finished a disturbing conversation with Tom Walker. It is my
understanding that the draft EIS is likely to come out without the
practicability analysis included. In essence that leaves commenting
agencies no real idea which alternative will be ultimately be selected
because it is very likely that the least damaging alternative will not be
determined as practicable by COE. So in essence the decisions on which
alternative will be selected will be made unilaterally by the COE between
the draft EIS review and the final.. Our experience with the COE is that
to have any realistic expectation of our comments being accepted by the COE
the comments need to made as early as possible (on the draft EIS, the final
is too late). The economic analysis is totally idependent on input from
the applicant. So it is in fact a good faith analysis.
This is important because the range of impacts is large and adequate
mitigation being possible over a long time frame varies significantly based
on the magnitude of the impact. It is my understanding that PCS has
requested the EMC for a variance on buffer mitigation. I understand that
variance was denied. That implies they expect to do less than what would
normally be expected of an applicant, not more as I have been lead to
believe at our meetings. PCS is not even at the draft EIS stage and they
are already requesting variances for mitigation. PCS has iimplied that if
we worked with them it may be possible to mitigate up front so that the
restored areas would be matured before the impact accured in many
instances. For example acquire land and start restoration at the issusance
of the permit and by the time the last acre is needed it may have been
restored years ago. I understand now from the COE that this is not going
to happen and it was an unrealsitic expectation. This is going to be
business as usual. So if you did not like the last one you are not going
to like this one either.
I do not think it is reasonable or prudent for the USFWS to accept an
economic analysis that is only a good faith estimate and be expected to
believe very large impacts will be mitigated over a long period of time as
land availability for good mitigation is lessening and prices are rising at
a very rapid rate. I think the COE needs to provide a practicability
analysis within the draft EIS, in part so we can see if the analysis is in
fact just a good faith analysis. If a majority of the inputs come from the
applicant instead of from independent sources the analysis is dependent on
the applicant having presented the inputs and the reviwers having accepted
them in good faith (totally based on trust).
I know it is very difficult for an analysis other than a good faith
estimate to be generated. However for the agencies to accept economic
analysis on good faith and also be expected to determine the adequacy of
mitigation without any real sense of what alternative will be selected
(which will be based on practicability analysis not included in the draft
EIS) seems foolish I also iunderstand that no significant details are yet
5 of 6 5/15/2006 10:20 AM
Re: new cd of aerials
available for proposed mitigation (yes some sites have been visited but no
real details have been worked out). That is not acceptable to me because
of the magnitude of the proposed impact. This situation has been
repeatedly discussed and I can only assume USFWS input has been ignored.
We are expected to just trust that the COE and the applicant will work
things out and if the mitigation is inadequate 10 years or so down the road
the COE will issue a cease and desist. I can not imagine that happening.
Can someone with PCS make me more aware of what is going on. If not I can
not help but think the team process as far as we are concerned has been
largely ineffective in meeting the requirements of the Fish and Wildlife
Coordination Act. I want to give the applicant this chance so that if my
concerns are just a problem in communication it can be resloved. Please
show me I confused. I was hopeful this process would work.
I know about the last meeting that I missed but I am loooking for more than
that. I have talked with Tom and I think we agreed to disagree. So now I
am asking the applicant. Help me understand what is going on here. I am
very concerned that I should have listened to cautionary notes over the
course of our meetings and have been played the fool.
Thanks,
Mike
EMC-WQC Statement in principle - flexible buffer mitigation.

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