Nutrien considers closing less-profitable Sask. potash mines

As the newly-created agricultural company Nutrien searches for cost savings, less-profitable potash mines in Saskatchewan might be phased out.

During the company's fourth quarter financial call, the company said it was looking at all options to reach $500 million US in savings by the end of 2019.

"All of those things are on the table," said Raef Sully, Nutrien's executive vice-president ofpotash during the call. "We're certainly looking at those options."

In 2016, PotashCorp indefinitely closed its operations at its Picadilly mine in New Brunswick, cutting 430 jobs. That same year, the Cory potash mine in Saskatchewan laid off 100 permanent workers and 40 temporary workers, and is now producing white potash only.

The company's production at its Allan, Sask., and Lanigan, Sask., mines were also curtailed this fall, by 10 and eight weeks, respectively.

"In the short term, we need the six [Saskatchewan mines]running," said Sully. "We'll look at that halfway through the year and see what the second half does."

Production could shift to the company's newly expanded operation at Rocanville, Sask., which the company lauded as one of its lowest cost mines.

Right now, the company said it was focusing on maximizing performance at its existing potash mines.

Company outlook

The company said the outlook for potash sales was fairly rosy, with average prices rising in 2017 by 11 per cent and sales volumes up by eight per cent.

"Demand is quite robust in all global markets," said Nutrienpresident and CEO Chuck Magro. "For the full year, PotashCorp benefitted from significantly improved global market conditions as our average realized potash price increased."

The company expects to earn between $3.2 billion and $3.7 billion USthis year before deductions.

Nutrien also sold its stake in Israel Chemicals Ltd. last month for $685 million US to appease regulators.