The Mosaic Company announced that it will idle its Colonsay, Saskatchewan potash mine for the remainder of 2016 and halt current turnaround activities. The move is intended to allow Mosaic to meet customer demand while adapting to challenging potash market conditions. Approximately 330 employees have received temporary layoff notices as a result of the idling.
The Colonsay mine's proven annual production capacity is 2.6 million tonnes. The Company's lower-cost Esterhazy and Belle Plaine mines, in combination with current inventory, will allow Mosaic to meet its short-term potash supply needs.
"We continue to execute the difficult but necessary actions to ensure Mosaic will be as competitive as possible across the business cycle," said President and CEO Joc O'Rourke. "Lower global potash demand and market prices require that we curtail production. Idling Colonsay will enable us to meet our customers' needs while reducing our production costs."