Nutrien is temporarily shutting down its Allan, Lanigan and Vanscoy mines in the 4th quarter of the year to address what it calls a short term slowdown in global potash markets. This will affect between 500 and 700 workers.
A news release from the world’s largest fertilizer company based in Saskatoon and Calgary says it will take up to 8-weeks of inventory shutdowns at the 3 mines. If all 3 mines are shut down for the full 8 weeks, production could be reduced by 700-thousand tonnes, annual earnings before interest, taxes, depreciation and amortization could be reduced by $100 to $150-million U.S.
Despite the current conditions, Nutrien remains positive for potash demand in 2020. There will be a gradual ramp up of production to meet demand.