PotashCorp of Saskatchewan Inc. on June 16 reported that it has rescinded previously announced layoff notices at the company’s Penobsquis, N.B., facility, impacting approximately 50 employees.
“Given ongoing tightness in the granular potash market, this temporary extension in operations will allow continued production from our Penobsquis mine (previously anticipated to cease by the second quarter of 2014) as we ramp up our Picadilly operation,” PotashCorp said. “Ramp-up activities at our Picadilly mine are continuing on schedule, with initial production expected during the fourth quarter of 2014.”
PotashCorp reported in December 2013 that it planned to cut a total of 130 positions in New Brunswick as part of a company-wide workforce reduction of approximately 1,045 employees due to sluggish demand and “challenging market conditions (GM Dec. 9, 2013). It said the changes were necessary to reduce costs, maintain operational flexibility, and optimize the company’s lowest cost operations.
In addition to the workforce reduction, PotashCorp said in December that it planned to cease production at its Penobsquis mine in 2014 in order to allow it to accelerate development activities at its low-cost Picadilly potash mine near Sussex, N.B.