SASKATOON – As it prepares for the merger with Agrium, Potash Corporation of Saskatchewan has announced layoffs and production cutbacks at its mines in Saskatchewan.
At the Cory mine, production of red potash will cease, and only white potash will be produced at a rate of approximately 800,000 t/y. As this represents a significant cut from the previous capacity of 1.4 million t/y, about 100 permanent employees will be laid off and 40 temporary positions will be lost. Most of the job cuts will occur in February with other changes occurring in Q3 2017.
PCS Potash president Mark Fracchia said, “We are making this decision to optimize production to our lowest cost operations, including Rocanville and other Saskatchewan sites, where new capacity was added and employment levels have risen by approximately 265 since 2014.”
PotashCorp also said the Lanigan mine will shut down for six weeks beginning in January and its Allan mine for 12 weeks beginning in February. This strategy takes into account increasing low cost production at Rocanville, maintaining the company’s desire to match supply with market demand. Potash prices remained stubbornly around US$200/tonne recently in light of falling demand.
Please visit www.PotashCorp.com.