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K+S settles environmental dispute with Gerstungen municipality

FRANKFURT (Reuters) - German potash miner K+S has settled a dispute with Gerstungen in Thuringia over the municipality's drinking water, allowing K+S to continue producing potash in the region.

K+S has been trying to come to terms with communities and environmentalists, who are fighting its practice of injecting salty waste water - a byproduct of processing potassium ore into fertilizer products - into porous rock layers.

The company said it had secured a 30-year agreement with Gerstungen, which would cost it less than 10 million euros ($12 million) to support an action plan to improve the municipality's drinking water provision.

K+S last month settled with German conservationists group Bund, which dropped a lawsuit.

(Reporting by Georgina Prodhan; Editing by Arno Schuetze)

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