Nutrien cuts Vanscoy potash mine capacity

Canadian potash producer Nutrien will cut production capacity at its Vanscoy potash mine to 1.7mn t/yr from 2.2mn t/yr and increase output at its lower-cost mines as it looks to remain competitive on global markets, the firm said today.

This is Nutrien's second announced change to its potash mining operations in seven months. The company said in November last year that it will permanently close its New Brunswick facility, which has been idle since January 2016. The decision to close New Brunswick permanently reflects the firm's ability to produce more in Saskatchewan at a "significantly lower operating and capital cost", Nutrien said.

The company's production costs for 2018 fell by $4/t to $91/t. Potash production for 2018 was up by 5pc on the year at 12.8mn t.

Nutrien's 2019 sales guidance is 13mn-13.4mn t, assuming normal spring weather and the realisation of more corn and cotton acres in the US.

The Vanscoy capacity reduction will lead to the loss of around 20 staff when the change takes place in the third quarter.