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On Wednesday, Canadian Environment Minister Peter Kent announced that Canpotex Ltd.'s proposed potash terminal at the Port of Prince Rupert, British Columbia, likely would not cause significant adverse environmental effects if certain mitigation measures are implemented and a follow-up program is carried out.

Kent referred the project back to Environment Canada, Fisheries and Oceans Canada, and Transport Canada for any other appropriate action.

Canpotex Terminals Ltd., CN and the Prince Rupert Port Authority propose to develop a potash export terminal, as well as a rail, road and utilities corridor on Ridley Island at the port. Canpotex would build and operate the terminal, which is designed to export up to 11.5 million tons of potash annually.

The project includes an automated rail-car unloading and conveyor system, a five-mile rail loop with up to 14 inbound and 11 outbound tracks, three inbound and two outbound tracks for the terminal, and an access road with a rail overpass and underpass.

The project was assessed using a science-based approach, Canadian federal officials said in a prepared statement.

"As with any project assessed under the Canadian Environmental Assessment Act, this project will continue to be subject to Canada's strong environmental laws, rigorous enforcement and follow-up, and increased fines," they said.