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.
