Canpotex, the offshore selling agency for potash mined in Saskatchewan, on Wednesday received federal environmental approval to build a new export terminal at the port of Prince Rupert, B.C.

Environment Minister Peter Kent said in a statement that the terminal was not likely to cause significant adverse environmental effects.

The project will be subject to "mitigation measures and (a) follow-up program" mapped out in the environment department's study report.

Kent, according to his release, has now referred the project back to the federal environment, fisheries and oceans and transport departments for "appropriate action."

Canpotex will work on the terminal project together with Canadian National Railway (CN), which hauls some of the agency's potash on its southern B.C. line.

The Canpotex project also calls for a "rail, road and utilities corridor" on Ridley Island.

Canpotex sells potash on behalf of Agrium, PotashCorp and Mosaic Co. in key markets such as China and India. -- Reuters/Staff