Fertilizer firm PotashCorp plans to temporarily halt production at two Saskatchewan potash mines this winter to curb excess supply.
The Saskatoon company, in the midst of seeking regulatory approvals for a merger with Calgary competitor Agrium, announced last week it will “curtail” production at its mines at Allan and Lanigan, Sask.
The shutdowns will run for 10 weeks starting Nov. 19 at the mine at Allan, about 50 km southeast of Saskatoon, and for eight weeks from Dec. 3 at Lanigan, about 50 km south of Humboldt.
The “inventory adjustment” shutdowns are in line with the company’s strategy of matching supply to market demand and “fully utilizing” its lowest-cost mine at Rocanville, about 120 km southeast of Yorkton.
The shutdowns will involve temporary layoffs, but how many hasn’t yet been determined, PotashCorp said. Employees may be reassigned during the shutdowns to work on “essential services, capital projects and maintenance activities.” — AGCanada.com Network
Tagged Allan, inventory adjustment, Lanigan, layoffs, potash, PotashCorp, Rocanville, shutdowns