Production at Compass Minerals’ salt mine in Goderich, Ont., will be temporarily reduced due to a strike called Aug. 20 by the Communications, Energy and Paperworkers Union Local 16-O. Compass said it has strong deicing salt inventories following the historically mild winter season and believes mine management will be able to produce sufficient rock salt to meet its non-seasonal-customers’ needs while negotiations continue. The union represents approximately 380 employees at the mine.
“The company’s proposed three-year agreement includes higher wages and attractive benefits, and addresses additional jobs associated with the company’s investment in new mining technology. When negotiations were suspended by the union, we were in agreement on all issues but one management-rights topic. We’re confident that we can work with union leadership to reach a mutually satisfactory agreement,” said Angelo Brisimitzakis, Compass Minerals’ president and CEO. “We look forward to resuming normal operations soon, and with our current strong inventory position we expect to have no difficulty serving our highway deicing customers this season.”
In other salt news, Compass on Aug. 13 announced that through its Sifto Canada Corp. subsidiary, it has entered into an agreement with the Town of Goderich and the Goderich Port Management Corp. (GPMC) to expand and enhance the Port of Goderich. “We believe this joint project will bring new cargoes, jobs, and opportunities to the community while providing Sifto with additional site flexibility, particularly during the winter months,” said Rowland Howe, Canada country executive for Compass Minerals. The plan calls for the creation of new land at the port, which would provide space for additional port traffic and would give Sifto additional storage options during the winter when the lake is closed. “The port expansion would allow us to continue to produce rock salt when lake traffic can be limited because of ice, giving us more consistent production and employment levels throughout the year and enhancing our recent C$70 million expansion,” Howe said.
The project is expected to cost approximately C$47.2 million, and will be financed in part through a C$15.7 million infrastructure improvement grant from the province of Ontario, along with funds from the GPMC. Sifto’s additional fees, currently expected to total approximately C$18.9 million over a five-year period, would provide Sifto with a renewable 25-year lease on the new land.
The plan requires completion of an environmental assessment, which is currently underway. Additionally, successful conclusions in feasibility evaluations and additional engineering studies must be finalized. The company and the town of Goderich expect project completion in 2016.