PotashCorp to close N.B. mine indefinitely, cutting up to 430 jobs

SUSSEX, N.B. -- Amid weak global markets for fertilizer products, Potash Corporation of Saskatchewan shut down its Picadilly mine in southern New Brunswick for an indefinite period Tuesday, eliminating up to 430 jobs.

See Full Article

"This is a very difficult day for our employees and our company," PotashCorp. CEO Jochen Tilk said in a statement.

"We understand the significant impact to our people in New Brunswick and the surrounding communities and are committed to helping those affected through this challenging time."

The company (TSX:POT) said it is cutting costs by focusing on its lower-cost operations in Saskatchewan.

The move is expected to save the company up to $50 million in 2016, although these savings will be offset by $35 million in severance costs.

About 35 employees will be kept on to maintain the idled facility near Sussex. Another 100 workers will remain in place through a four-month transition period.

Should the company decide to rsume operations, it would take about a year to get it running again.

The company, based in Saskatoon, Sask., has been struggling to cope with weak markets for years. Cuts made in 2013 took out 3.5 million tonnes in potash production.

When the company reported a drop in quarterly profits and sales in October, it also announced it would permanently close its Penobsquis mine in New Brunswick ahead of schedule, cutting 140 contract jobs.

The mine, adjacent to the Picadilly operation, was supposed to close in 2016 but the shutdown was moved up to November 2015.

At the time, PotashCorp. said the Penobsquis closure would allow the company to ramp up production at Picadilly, which is a newer and lower-cost operation.

On Tuesday, the company said more than 100 positions will be available for New Brunswick employees at its Saskatchewan operations with funds being made available for relocation.

There will also be severance and assistance packages for workers who choose not to relocate, and a $5-million community fund will help former employees get skills training and provide support to local businesses and charitable organizations.

Customers traditionally served by the New Brunswick mines will now get their potash from the company's Canpotex operation in Saskatchewan, where volume is expected to grow by 750,000 tonnes.

The company is the world's largest supplier of potash, which is used mainly as a fertilizer. It also produces large amounts of nitrogen and phosphate, which are also used as crop nutrients.



Advertisements

Latest Economic News

  • Airbnb drops lawsuit against NYC over new state law

    Economic CTV News
    NEW YORK -- Airbnb has agreed to drop a lawsuit against New York City over a new state law it said could have deterred hosts and impaired its revenues. The settlement was reached Friday. Source
  • France pledges $30 million for wartime heritage protection

    Economic CTV News
    ABU DHABI, United Arab Emirates -- France committed $30 million toward protecting cultural heritage sites during wartime on Saturday, a first step in the creation of an international fund aimed at preventing destruction like that carried out by Islamic State militants. Source
  • The best and worst ways to budget for the holidays

    Economic CBC News
    Presents. Parties. Travel. The holidays can drain our energy, and our bank accounts — even if we try our best to prevent it. We checked in with some of Canada's top personal finance experts for their best budget tips, but also their biggest blunders, because even the smartest money-handlers know holiday pressure can lead to poor decisions. Source
  • Angry Air Miles collectors demand back points they rushed to use on 'junk'

    Economic CBC News
    On Thursday, Air Miles cancelled its controversial expiry policy. But the move is only fuelling the fury for many collectors who used their points on stuff they didn't really want to beat the clock. Source
  • Death threats and abuse for woman leading Brexit court fight

    Economic CTV News
    LONDON -- Gina Miller is paying the price for going to court. The financial entrepreneur says she has received death threats and racial and sexual abuse since she won a High Court ruling forcing the British government to seek Parliamentary approval before leaving the European Union. Source
  • Air Miles rep: 'Options' may exist for panic redeemers

    Economic CTV News
    Air Miles Canada may have thought abandoning its unpopular expiration policy would calm the cardholder backlash from those who rushed to spend miles, but were frustrated by full flights, sold out merchandise, and long customer service delays. Source
  • Irving mill faces steep fines after being charged with polluting St. John River

    Economic CTV News
    SAINT JOHN, N.B. -- Irving Pulp and Paper is facing 15 counts of polluting the St. John River at its mill near the Reversing Falls tourist attraction. An Environment Canada spokesman says Irving has been charged under federal Fisheries Act provisions on the deposit of harmful substances into fish-bearing water. Source
  • Costco investigated over allegations pharmacy directors accepted kickbacks for certain brands

    Economic CBC News
    Costco is being investigated by Ontario's Ministry of Health for its compliance with the province's legislation on selling pharmaceutical and over-the-counter drugs. The health ministry investigation comes after the Ontario College of Pharmacists (OCP) announced it would hold disciplinary hearings for two Costco pharmacy directors because of allegations that they accepted Source
  • Costco to be investigated by government over compliance with drug-selling rules

    Economic CTV News
    TORONTO -- Costco is being investigated by Ontario's Ministry of Health for its compliance with the province's legislation on selling pharmaceutical and over-the-counter drugs. The health ministry investigation comes after the Ontario College of Pharmacists announced it would hold disciplinary hearings for two Costco pharmacy directors because of allegations that they accepted kickbacks for stocking certain brands. Source
  • United Airlines will pay US$2.4 million to settle with SEC

    Economic CTV News
    WASHINGTON -- The parent company of United Airlines will pay US$2.4 million to settle civil charges by securities regulators over flights that were started to help an official who oversaw one of the airline's hub airports. Source