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PotashCorp suspending production at Allan mine for 4 weeks

PotashCorp. of Saskatchewan facilities are seen in this undated image taken from video.
PotashCorp. of Saskatchewan facilities are seen in this undated image taken from video.

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Date: Friday Jan. 6, 2012 11:30 AM ET

SASKATOON — Potash Corporation of Saskatchewan Inc. (TSX;POT) said Friday it plans a four-week production shutdown starting next month at its Allan mine in the Saskatoon area.

"It's what we call an inventory adjustment," said Bill Johnson, senior director, public affairs.

"We've got a long history of matching our supply to market demand and market demand is a little soft right now so we are adjusting our supply accordingly," Johnson said in a telephone interview.

No layoffs are expected among the 290 hourly wage workers during the Feb. 5 to March 3 shutdown at the mine, which supplies about 10 per cent of the company's potash production.

"Everyone will carry on working at the mine. So there will be no impact on jobs, there will just be an impact on production," Johnson said.

"We've got expansion projects going on there so we'll find other jobs for our staff to undertake during that time."

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Intelligent Liberal
said

Peter, very little potash is used in Canada, it's exported to Asia and also to the US corn belt. Now that the wheat board is gone, farmers will have the option to slow their production, if they so choose, however good luck impacting world demand with their personal crop. PCS can influence global price since Saskatchewan is the largest producer of potash in the world..., Sam Elliot's Country Apples doesn't have the same clout.


Paul in Ottawa
said

Excellent on the company for putting their employees first. They could easily have laid them off and saved a lot of money. Nice to see some companies returning the loyalty their employees show them.


Peter
said

Thats great, this is how they keep the price of postash artificially high, making the price of food $$. Maybe it is time farmers stop production to help increase the farmgate price.


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