Potash Corp of Saskatchewan
is cutting production to bolster prices and profits.
The company is closing one
of two mines in New Brunswick and won’t have enough extra potash coming from
the new mine to match current production in that province for some time.
It is also going to shut
down three of its Saskatchewan mines for three weeks in December.
Earlier this month Mosaic
announced an eight per cent reduction of its staff at the Colonsay mine in
Saskatchewan. It also cited lower fertilizer prices.
Agrium, the third partner
in a Saskatchewan export cartel, announced cut-backs late last year.
Jochen Tilk, chief
executive officer for Potash Corp said "we have some of the best, most
efficient potash assets in the world and we continue to take steps to even further
improve efficiencies and lower our costs."
Tilk recalled cuts in 2013 that
reduced its production capacity by 3.5 million tonnes.
It plans to permanently
close its Penobsquis mine in New Brunswick at the end of November instead of
next year, part of its plan to reduce production by 500,000 tonnes during the
fourth quarter.
It plans to increase
production at its lower-cost Picadilly mine, also in New Brunswick.
The closure at Penobsquis
affects 140 contract workers employed by Vic Progressive Diamond Drilling.
"While this will
reduce production levels in New Brunswick by approximately 800,000 tonnes
annual until we have Picadilly fully ramped up, it aligns with market
conditions," Tilk said.
Score one for shareholders and executives' compensation, zero for customers and mine workers.
