Canada’s Potash Corporation of Saskatchewan has decided to permanently shut down the older of its two potash-mining operations in New Brunswick as of next month. The decision was announced after the most recent financial report had been delivered. The Canadian potash giant says that the fertilizer market has been less strong than anticipated in the second half of this year and therefore it is taking measures to decrease inventory levels. The newer New Brunswick Picadilly mine is working up to full capacity.
On top of the permanent closure in New Brunswick, the company is also considering three-week temporary closures at three other mines in Saskatchewan towards the end of this year. Potash Corporation confirmed that it was not envisaging any layoffs or downsizing as a result of its efforts to decrease production by 500,000 tons in the fourth quarter. The company’s CEO, Jochen Tilk, said that “despite challenges over recent months”, the company is “seeing signs of a shift in focus by distributors and farmers to 2016”. He added that he believed that “the need for increased global agricultural production – coupled with supportive crop prices – provides a compelling opportunity for farmers.”
In Potash Corp’s financial report for the three months that ended in September, the company saw its income drop to US$282 million, which corresponds to 34 cents per share – down from US$317 million or 38 cents per share in the third quarter of 2014. Revenue from sales of potash, phosphates, and related fertilizer products and services decreased to US$1.53-billion from US$1.64-billion.