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Agrium Inc's chief executive says the company is looking into possible new development of potash mines in the Canadian province of Saskatchewan, according to a report.

"Our board just today approved additional capital to accelerate our look-forward on greenfield facilities," CEO Mike Wilson told shareholders at the company's annual meeting, according to Reuters.

Wilson said that in the region, the company mines 2.05 million metric tons of Potash - a compound containing potassium that is used as a fertilizer. Agrium is considering mining an additional 800,000 metric tons.

The first stage will cost $500 million starting in 2012 with a second stage a year later, he said. A new 2 million metric tons mine could cost as much as $2.5 billion, Wilson added.

Shares of Agrium on the New York Stock Exchange fell 29 cents fell 21 canadian cents, or 0.24 percent to $86.54.