POTASH: PotashCorp suspends Picadilly mining

NEW BRUNSWICK – Potash Corporation of Saskatchewan has suspended mining indefinitely at the Picadilly potash mine near Sussex. The company said the cost of care-and-maintenance will be $20 million this year and $15 million in 2017 and in subsequent years. The property has been shut down since last November so that inventories could be adjusted. PotashCorp will benefit from the closure for two important reasons – taking a high cost producer offline and avoided $50 million in needed capital projects at Picadilly. Obligations to customers previously supplied from New Brunswick will now be fulfilled by Canpotex in Saskatchewan. The shutdown will eliminate between 420 and 430 jobs. The company is making 100 positions available in Saskatchewan to its New Brunswick workforce. Relocation assistance will be available as will severance and assistance packages. PotashCorp will also establish a $5-million community investment fund. Visit the company’s web page at PotashCorp.com.