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The Mosaic Company announced Tuesday that its Colonsay potash mine is being “idled for the foreseeable future.”
In a media release, the company said the mine is to be placed in “care and maintenance mode.” It will employ minimal staff but will be ready to resume normal operations when required.
A texter to CJME wrote: “All staff escorted off site. Computers locked.”
A company spokesperson said 80 workers were laid off Tuesday, joining the 340 who received layoff notices in August. The spokesperson cited market conditions and a difficult fourth quarter as reasons for the latest layoffs.
“Approximately 45 positions will remain in place at the site to complete safety and regulatory checks as well as to conduct some minimal maintenance that needs to be done,” said Sarah Fedorchuk, the vice-president of public affairs and government relations for The Mosaic Company.
In the media release issued earlier in the day, Mosaic president and CEO Joc O’Rourke explained the reason for the move.
“The ramping up of our Esterhazy K3 production combined with continued weak demand in North America has left Mosaic’s potash business with excess inventory and production capacity,” O’Rourke said.
“This decision will regrettably impact employees, but allows us to optimize our Canadian production assets and improve our cost position in a competitive market. In 2020, we continue to expect robust global fertilizer demand and strong business conditions.”
Fedorchuk noted that Mosaic’s other operations in the province will continue to produce potash while Colonsay sits idle.
“Colonsay has historically been considered a swing facility, meaning that when there’s strong demand, our lower-cost assets — like an Esterhazy or a Belle Plaine — run at high production levels but then there’s also room in the market to run Colonsay,” she said.
“With current market conditions, it just doesn’t economically make good business sense to operate Colonsay because it does have a much higher cost profile than our other sites.”
