* Sees significant drop in potash, magnesium prices, sales
volumes
* Has only provisional approval for saline waste water
discharge
* Q4 adjusted EBIT up 18 pct to 154 mln eur
(Adds details on waste water issue, earnings, Canadian mines)
FRANKFURT, March 10 (Reuters) - Salt and fertiliser supplier
K+S SDFGn.DE warned of a significant drop in operating profit
this year, citing lower potash prices and output restrictions at
its German mines due to stricter regulation of waste water
discharge.
"A significant drop in average prices in the Potash and
Magnesium Products business unit, as well as sales volumes
slightly below those of the previous year is anticipated," the
German company said in a statement on Thursday.
K+S in December was granted only provisional approval for
further discharge of saline waste water in the German state of
Hesse and warned that the limits imposed by the regulator could
crimp output over the next few months.
Fourth-quarter earnings before interest and tax, adjusted
for currency hedging effects, rose 18 percent to 154 million
euros ($169 million), helped by a strong dollar, which was
slightly above the average analyst forecast of 147 million euros
in a Reuters poll.
K+S, which fended off a takeover approach by Potash Corp of
Saskatchewan POT.TO last year, stood by plans to bring a new
Canadian potash mine known as Legacy on stream by end-2016.
This will help it reach its goal of 1.6 billion euros in
2020 earnings before interest, taxes, depreciation and
amortisation (EBITDA), up from 1.1 billion last year.
Legacy would be the first new mine in the potash industry in
four decades and undermines efforts by potash industry leader
Potash Corp and North American export cartel Canpotex to cut
output to shore up prices.
Earlier this year, Potash Corp decided to close its newest
potash mine in New Brunswick and to curtail production at two
other Canadian mines for four weeks.
($1 = 0.9112 euros)