The Saskatoon company said Wednesday it “expects to proactively take up to eight-week inventory shutdowns” at its mines at Allan, Lanigan and Vanscoy, Sask. during that period.

If all three mines stay idled for the full eight weeks, the company said, its potash production could be reduced by about 700,000 tonnes.

As a result, Nutrien said in a release, its 2019 EBITDA (earnings before interest, taxes, depreciation and amortization) from potash alone could be reduced by US$100 million and $150 million (C$132 million to $198 million).

Despite short-term market conditions, “we remain positive on potash demand for 2020, as well as the medium to long-term potash fundamentals,” the company said.

Nutrien’s news follows last month’s announcement from fellow fertilizer firm Mosaic Co. that it will temporarily idle its mine at Colonsay, Sask., between Allan and Lanigan.

Mosaic said Aug. 6 it plans to draw down inventories and use production from its Esterhazy K3 potash project, about 350 km southeast of Colonsay, to meet customers’ demand.

Doing so, Mosaic said, allows the company cut its costs of production, accelerate “inventory depletion” and boost its leverage for strengthening markets into next year.

Longer-term, Nutrien said Wednesday, it “remain(s) focused on a gradual ramp up of production to meet demand and to ensure we operate the safest, most reliable and efficient potash business in the world.” — Glacier FarmMedia Network

The post Nutrien to idle three Saskatchewan potash mines appeared first on Alberta Farmer Express.

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

The post Shutdowns planned for two PotashCorp mines appeared first on Alberta Farmer Express.

The company said it would cut production at its Cory potash mine, just west of Saskatoon, to 800,000 million tonnes a year from 1.4 million, resulting in a reduction of 100 jobs and 40 temporary positions starting in February.

Potash will also curtail production for six weeks at its Lanigan, Sask. mine starting in January and for 12 weeks at Allan, Sask. starting in February.

The changes come after potash prices fell to decade lows this year due to excessive global capacity, although they have recently improved. PotashCorp is still completing a multiyear expansion of its mine at Rocanville, Sask., about 120 km southeast of Yorkton.

The production cuts will allow the company to best use output from its lowest-cost mines, including Rocanville, Mark Fracchia, president of its potash division, said in a statement.

Pending regulatory approval, the company is merging with rival Agrium, which also runs a Saskatchewan potash mine near Vanscoy, about 20 km southwest of the Cory site.

— Reporting for Reuters by Rod Nickel in Winnipeg.

The post PotashCorp to cut jobs, output as prices sag appeared first on Alberta Farmer Express.

The company said it would curtail output at its Allan and Lanigan mines, about 50 and 110 km southeast of Saskatoon respectively, for four weeks starting March 20.

The move is expected to reduce 2016 production by 400,000 tonnes, the company said.

Saskatoon-based PotashCorp said last month it expected to sell 8.3 million to 9.1 million tonnes of potash this year.

The shutdowns involve time for maintenance and do not require layoffs, the company said in a statement.

The move comes after PotashCorp last month closed its newest potash mine, the Picadilly site near Sussex, N.B., citing weak market conditions.

Prices of the crop nutrient have fallen as crop prices soften and demand slackens in key buying countries such as Brazil and India.

It is unlikely that the latest curtailments will stabilize potash prices, and PotashCorp’s decision may not be material if the company is simply advancing its usual summer maintenance period, said BMO analyst Joel Jackson in a note.

— Reporting for Reuters by Rod Nickel in Winnipeg.

The post PotashCorp to curb two Sask. mines’ production appeared first on Alberta Farmer Express.