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Kassel, 18 December 2015 Transitional regulation for disposal of saline wastewater Injection can be resumed to a limited extent Today the Kassel Regional Council authorized K+S KALI GmbH to resume the injection of saline wastewater from the Werra plant until 31 December 2016 to a limited extent. However, K+S expects that the final decision regarding the application to continue injection until the end of 2021, which was submitted this April, will already be taken next summer following the completion of the technical assessment by the authority. “The very limited continuation of injection is a step in the right direction. Nonetheless, until the final decision regarding our injection application, we will have to continue to align production and disposal of the saline wastewater that will inevitably result from our operations to the water flow of the Werra river. Overall, that will be more possible at the beginning of the year due to above average precipitation.” says Dr. Ralf Diekmann, Managing Director of K+S KALI GmbH. In view of this, further temporary production restrictions at the individual sites of the Werra plant cannot be ruled out in the months ahead. As a precautionary measure, a works agreement on short-time working has thus been concluded with the works council. Limited continuation of injection The Kassel Regional Council has granted permission to K+S to continue with the injection of saline wastewater at the Hattorf site of the Werra plant until 31 December 2016 as a transitional measure on the basis of an annual total volume of 725,000 cubic meters. A volume of 120,000 cubic meters per month shall not be exceeded. The technical authority believes that this K+S Aktiengesellschaft · Bertha-von-Suttner-Str. 7 · 34131 Kassel/Germany · Phone +49 561 9301-1262 · www.k-plus-s.com Page 2 of the press release “Injection can be resumed to a limited extent”, 18 December 2015 restriction during the transitional phase will definitely remove any cause for concern regarding groundwater and drinking water. The authority’s experts are examining the 3D model’s prognosis capability A key element of the injection application is cooperation between K+S and well-known external experts over a number of years in the development of a three-dimensional groundwater model (the so-called 3D model). The operability of the model is currently being finally examined by the authority and its appointed experts with the required diligence. The objective is to be able to make statements for various periods of time concerning the saline water remaining in the substrate, as well as precise forecasts of future trends for individual drinking water measurement points, in order to exclude negative effects of injection on the safety of the drinking water until the end of 2021. In this connection, Mr. Diekmann emphasizes that: “We are using all the means available to us to support the work that must yet be undertaken by the authority to perform a final examination of the injection application so that safe disposal can be restored as quickly as possible”. Extensive documentation to support application In April of this year, K+S had applied to be able to inject an average of up to two million cubic meters per year (previously 4.5 million cubic meters per year) into the dolomite layer until the end of 2021, submitting documents containing over 3,000 pages. The application included extensive expert opinions and external position papers on topics such as protecting groundwater and drinking water as well as environmental monitoring. In future, only drilling at the Hattorf site is to be used for injection purposes. Long-term disposal concept K+S implements comprehensive water protection measures as well as recultivation and nature conservation measures, utilizes modern exploration and extraction methods and constantly further develops its process technology in order to minimize unavoidable adverse effects on the environment. K+S Aktiengesellschaft · Bertha-von-Suttner-Str. 7 · 34131 Kassel/Germany · Phone +49 561 9301-1262 · www.k-plus-s.com Page 3 of the press release “Injection can be resumed to a limited extent”, 18 December 2015 In recent decades, the volume of saline wastewater in the Hesse-Thuringia potash district has been significantly reduced, namely from more than 40 million cubic meters in 1970 to 20 million cubic meters in 1997 and then 14 million cubic meters in 2006. To that end, K+S for example developed the innovative ESTA®-process in which the crude salt is processed without using water, and has deployed it on a large-scale at several sites. Since it began to implement a comprehensive package of measures for water protection in 2011, K+S has to date halved the annual quantity of wastewater to 7 million cubic meters, and invested roughly € 400 million during that period. In September 2014 K+S reached agreement with the State of Hesse on a four-phase plan for permanent regulation of the disposal of saline wastewater in the Werra potash district. The goal of the various measures is, in particular through considerable further investment on the part of K+S, to further relieve the Werra-Weser natural area and to secure the future viability of jobs in the potash district on the Werra, Fulda and Ulster rivers until the deposits have been exhausted. This includes the construction of another, newly developed facility (KKF), which will reduce the occurrence of saline wastewater by a further 1.5 million cubic meters to an average of 5.5 million cubic meters annually from the end of 2017. Local discharge into the Werra will be supplemented by temporary operation of a pipeline to the Upper Weser as of 2021. The regional planning procedure necessary for this is currently being prepared by the authority. In addition to this, the development, planning and implementation of measures to reduce the pile wastewater has begun, for example by means of covering, with the aim of further improving water quality. As regards the salt load, the Werra and Upper Weser rivers will achieve long-term freshwater quality. K+S Aktiengesellschaft · Bertha-von-Suttner-Str. 7 · 34131 Kassel/Germany · Phone +49 561 9301-1262 · www.k-plus-s.com Page 4 of the press release “Injection can be resumed to a limited extent”, 18 December 2015 K+S will thus be investing a total of approximately € 800 million in environmental protection over just a few years. This represents an enormous economic challenge. Nonetheless, K+S is ready to meet that challenge as in doing so it will create the basis on which these disposal issues can be resolved once and for all. About K+S K+S is an international resources company. We have been mining and processing mineral raw materials for more than 125 years. The products we produce from them are used worldwide in agriculture, food and road safety and are important elements in numerous industrial processes. Potash and salt are integral nutrients for the megatrend of a constantly growing and increasingly prosperous global population striving for a higher standard of living. This will result in increasing consumption of mineral resources. We serve the resulting growth in demand from production sites in Europe, North America and South America as well as through a global distribution network. K+S is the world’s largest salt producer and one of the top potash providers worldwide. With more than 14,000 employees, K+S achieved revenues in financial year 2014 of about € 3.8 billion and an EBIT of € 641 million. K+S is the commodities stock on the German DAX index. Learn more about K+S at www.k-plus-s.com. Your contact person: Press: Michael Wudonig Phone: +49 561 9301-1262 [email protected] K+S Aktiengesellschaft · Bertha-von-Suttner-Str. 7 · 34131 Kassel/Germany · Phone +49 561 9301-1262 · www.k-plus-s.com