Sunday, October 1, 2017

Potash Corp shuttering mines

Potash Corporation of Saskatchewan will be shuttering two of its mines this winter so it can draw down inventories in a move to bolster prices.

It’s a familiar potash industry move not only in Canada, but also by Russia and Belarus who used to be partners.

Their partnership broke down in September, 2013, and they both increased production, prompting world-wide prices to collapse.

They have since tried to revive their partnership.

Potash Corporation is the world’s largest producer and is partner with Agrium and Mosaic in an export cartel approved by the Saskatchewan and Canadian governments.

About a month ago, BHP of Australia put its mine development at Jensen, Sask., on hold. That is scheduled to be a huge mine and its production would not be a partner in Canada’s export cartel.

Potash Corporation said it will idle the mine at Allan for 10 weeks and the one at Lanigan for about eight weeks this winter.

The company has a deal to merge with Agrium, but they are awaiting approvals from the Canadian and other governments.