Potash Corp. of Saskatchewan Inc. announced on Sept. 20 that it will temporarily idle two potash mines toward the end of the year. Their Allan mine will shut down for 10 weeks starting Nov. 19, and the Lanigan mine for eight weeks beginning Dec. 3. PotashCorp said the move was consistent with its strategy of matching supply to market demand while utilizing its lowest cost Rocanville facility.
According to the Green Markets Global Potash Quarterly, the Allan mine has an estimated nameplate capacity of 3.9 million mt and operational capacity of ~3.2 million mt, while the Lanigan mine has an estimated nameplate capacity of 3.8 million mt and operational capacity of ~2.2 million mt. Neil Fleishman, Green Markets Senior Industry Analyst, said the shut-ins will likely reduce production by just under 1 million mt.
PotashCorp said the number of temporary layoffs associated with the shutdowns has not yet been determined, as the company is assessing opportunities for reassigning affected employees to essential services, capital projects, and maintenance activities.