Glossary

General Terms

200XE: (Year) Estimated.
201XF: (Year) Forecast.
CAGR: Compound Annual Growth Rate.
Canpotex Limited: An export company owned by all Saskatchewan potash producers (PotashCorp, Mosaic and Agrium). Sales through Canpotex are generally allocated pro rata to each producer on the basis of capacity. In 2008, PotashCorp provided 54% of Canpotex product.
Cogeneration: The generation of electricity from excess energy collected during the production process.
E: Estimated.
Export or Offshore Markets (“Offshore”): All markets other than North America.
F: Forecasted.
FOB (Free on Board): the cost of goods on board at point of shipment.
FSU: former Soviet Union.
G3 Indicator: Sustainability performance indicators contained in the G3 guidelines of the Global Reporting Initiative (GRI), an independent institution whose mission is to develop and disseminate globally applicable sustainability reporting guidelines. The G3 guidelines provide the framework for this report. For more information, visit www.globalreporting.org.
GDP: Gross Domestic Product.
Grain: includes wheat, rice and coarse grains, unless otherwise noted.
Greenfield: New operation built on undeveloped site.
Latin America: South America, Central America, Caribbean and Mexico.
Liquid fertilizers: Fertilizer either in solution (plant nutrients are dissolved in liquid); or in suspension, (a saturated solution in which some plant nutrients are suspended by gelling clay.
LNG: Liquefied Natural Gas.
Mixed fertilizer: Fertilizers that contain more than one nutrient. The nutrient breakdown is always stated in the same order, and is referred to in the industry as NPK (nitrogen, phosphate, potash). For example, fertilizer graded as 5-20-20 contains 5% nitrogen (N), 20% phosphorus (P₂O₅) and 20% potash (K₂O) by weight.
MMT: Million tonnes.
North American Market (or North America): Includes Canada and the United States.
Organizational Culture Diagnostic Instrument®: An employee survey tool developed by safety consulting firm BST that measures factors linked to performance in the areas of environment, safety and health. The results of plant-site OCDI surveys help determine where improvement is needed at the site.
PhosChem: An association formed under the Webb-Pomerene Act for US exports of phosphate fertilizer products. Members are PotashCorp and Mosaic. PCS Sales is responsible for export sales of liquid fertilizers for all PhosChem members while Mosaic is responsible for sales of solid fertilizers for members.
PotashCorp: Potash Corporation of Saskatchewan Inc. (PCS) and its direct or indirect subsidiaries, individually or in any combination, as applicable.
Product tonne: A standard metric measure of the weights of all types of potash, phosphate and nitrogen products.
Shipments: Imports plus domestic producer sales.
State-Controlled Production: Operational control in the hands of the state.
Subsidy-Controlled Production: The State provides subsidies which control the economic viability of the operation.

Operating Terms

Brine: Water containing dissolved potassium and sodium salts.
Capacity: The amount of a nutrient a company can produce annually.
Feedstock: A raw material that is used to make other products.

Measurements

BBtu: One billion British thermal units.
British thermal unit (BTU): A unit of heat equal to the amount of heat required to raise one pound of water one degree Fahrenheit.
Gigajoule (GJ): One billion joules.
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.
MMBtu: One million British thermal units.
Terajoule (TJ): One trillion joules. One tera joule equals 0.95 BBtus.
Ton: A short ton, the equivalent of 2,000 pounds. Rarely used in Canada since metrication, but is commonly used in the United States. The company's US price lists are in US dollars per short ton. To convert to metric tonnes, multiply by 0.9072.
Tonne (MT): A metric tonne, the equivalent of 2,204.6 pounds, or 1,000 kilograms. Most offshore sales are made in metric tonnes and US dollars. To convert to short tons, multiply by 1.1023.

Currency Abbreviations

CDN: Canadian dollars.
EUR: Euros.
NOK: Norwegian krones.
RUB: Russian rubles.
USD: United States dollars.

Potash

Constructed capacity: A term that indicates the state when a mechanical construction of a capacity expansion is complete but ramp-up to full operating rates has not yet been achieved.
K₂O: Potassium oxide, a term used in the fertilizer industry to define potassium content. To convert KCl product tonnes to K₂O, multiply by 0.61.
K₂O tonnes: A unit that measures the nutrient value of potassium-containing fertilizers.PotashCorp potash product is guaranteed to contain a minimum of 60% K₂O.
Potash (KCl): Potash fertilizer is muriate of potash (KCl, potassium chloride). Potassium also combines with other materials in specialty fertilizers such as potassium sulfate (K₂SO₄), potassium magnesium sulfate (K₂Mg₂(SO₄)₃) or potassium nitrate (KNO₃). 60-63.2% K₂O (solid).
Potassium (K): The seventh most common element in the earth's crust. Economically recoverable deposits are usually found combined with chlorine in the chemical compound potassium chloride, commonly referred to as potash.

Phosphate

Animal and poultry feed supplements (Dical, Monocal, DFP): Important sources of phosphate nutrients, these solid products contain varying amounts of calcium and phosphate. These products are sold on the basis of their phosphorus content. Monocalcium phosphate is 48.1% P₂O₅ (solid); dicalcium phosphate, is 42.4% P₂O₅ (solid); defluorinated phosphate is 41.2% P₂O₅ (solid).; contain phosphate rock (apatite), which is used to produce phosphate fertilizers and phosphate chemicals.
DAP (diammonium phosphate): A major solid phosphate fertilizer. Its excellent handling properties and NPK composition of 18-46-0 make it well suited to both large- and small-scale agriculture. 46% P₂O₅ (solid).

MAP (monoammonium phosphate): A solid fertilizer with a typical NPK composition 13-52-0. 52% P₂O₅ (solid).

MGA (merchant grade phosphoric acid): Available in amber or green, MGA has an NPK composition of 0-54-0. It is primarily used to produce DAP. 54% P₂O₅ (liquid).

P₂O₅, (phosphoric pentoxide): A term used to express content of phosphorus. To convert P to P₂O₅, multiply by 2.2915. phosphoric acid (liquid).
P₂O₅ tonnes: Units that measure phosphorus-containing fertilizers, which varies among products. DAP is typically 46% P₂O₅.
Phosphorus (P): An element widely distributed in nature in combination with other elements. Economically recoverable deposits most commonly
STF: Silicon tetrafluoride.
Superphosphoric acid (SPA): An acid used to manufacture liquid fertilizers. Typically has an NPK composition of 0-70-0. PCS Phosphate's LoMag is superphosphoric acid, with its magnesium content substantially reduced through filtration. 70% P₂O₅ (liquid).
TSP (triple super phosphate): A solid fertilizer produced from phosphate rock and phosphoric acid, which has NPK composition 0-46-0.

Nitrogen

Ammonia (NH₃): Produced primarily from natural gas and air, Ammonia is the first product made in nitrogen fertilizer production. It can also be applied directly to soils. Anhydrous ammonia (NH₃) is a gas with NPK composition 82-0-0, which is changed under pressure to a liquid which is then stored and transported. 82.2% N.
Ammonium nitrate (NH₄NO₃): With an NPK composition of 34-0-0, ammonium nitrate is water-soluble. It is used as a solid in industrial applications and as a liquid in nitrogen solutions. Half its nitrogen is in in the form of ammonium; the other half is in the form of nitrate.
Nitric acid (HNO₃): Produced by an ammonia oxidation process, Nitric Acid is used to produce ammonium nitrate and as an intermediate for industrial purposes. 22% N (liquid).
Nitrogen (N): Essential nutrient for plant growth , Nitrogen is a gas which makes up 78 percent of the atmosphere. Some plants, including legumes such as soybeans, can fix nitrogen from the air, but most take it from the soil. Nitrogen must be applied to soil each growing season because its nutrient value is consumed by previously harvested crops.
Nitrogen solutions (UAN): Produced by blending ammonium nitrate and urea solutions, UAN is used to manufacture starter fertilizers and for direct application on soils. UAN solutions vary in nitrogen content (28-32%) and are non-pressure solutions. 28-32% N (liquid).
Urea (CO(NH₂)₂): With an NPK composition 46-0-0, UREA is the most commonly produced and traded nitrogen product. It is used as fertilizer and for industrial purposes.

Conversion Factors

To Convert:	To:	Multiply By:
Tons, long	pounds	2240.0
Tons, long	metric tonnes	1.0160
Tons, long	short tons	1.2000
Tonnes, metric	pounds	2204.6
Tonnes, metric	long tons	0.9842
Tonnes, metric	short tons	1.1023
Tons, short	pounds	2000.0
Tons, short	long tons	0.8929
Tons, short	metric tonnes	0.9072

Nitrogen Production Factors

To produce 1 short ton of:	Requires:
Ammonia	32.5 million Btu of natural gas (33.5 million Btu of natural gas prior to May 1, 2006)
Urea solution	0.58 tons of ammonia 0.78 tons of carbon dioxide (CO₂)
Urea prills (46% N)	1.01 tons of urea solution
Nitric acid (22% N)	0.29 tons of ammonia
Ammonium nitrate solution	0.80 tons of nitric acid 0.22 tons of ammonia
UAN solution (32% N)	0.45 tons of ammonium nitrate solution 0.35 tons of urea solution

Phosphate Production Factors

To produce 1 short ton of:	Requires:
Sulfuric Acid (100% H₂SO₄)	0.33 short tons sulfur
Phosphoric Acid (100% P₂O₅)	2.8 short tons sulfuric acid 3.5-4.0 short tons phosphate rock
Diammonium Phosphate (46% P₂O₅)	1.175 short tons of wet phosphoric acid (40% P₂O₅) or 0.47 short tons P₂O₅ 0.23 short tons ammonia or in raw material form: 1.65-1.90 short tons phosphate rock 0.44 short tons sulfur 0.23 short tons ammonia
Monoammonium Phosphate (53% P₂O₅)	1.35 short tons of wet phosphoric acid (40% P₂O₅) or 0.54 short tons P₂O₅ 0.145 short tons ammonia or in raw material form: 1.71 - 1.96 short tons phosphate rock 0.53 short tons sulfur 0.145 short tons ammonia
Triple Super Phosphate (46% P₂O₅)	0.4 short tons 70 BPL rock 0.85 short tons 40% P₂O₅ phosphoric acid