The contract has been awarded to G&S Engineering Services Pty Ltd (G&S), a wholly owned subsidiary of DRA Global Ltd (DRA).
Enhancements made to the planned design of the process plant and mine have increased the Muga project's net present value and internal rate of return to €1.97 billion and 25% respectively.
The increased curtailment is based on increasing inventories as a result of a short-term slowdown in global potash markets and increased risks of a delay in Chinese contract settlement.
More Potash news
The agreement covers 100% of the potash production (146 000 tpy) from the Milestone Phase I plant in Saskatchewan, Canada.
The company has responded to the current weak demand for potash by reducing production by up to 300 000 t.