Canada’s Nutrien (TSX, NYSE: NTR),
the world’s biggest producer of potash fertilizer, is temporarily
laying off workers at three of its Saskatchewan mines in response to a
short-term slowdown in global markets.
The company said late on Wednesday that it expected to take production downtime at its Allan, Lanigan and Vanscoy starting in November.
The shutdowns may last up to eight
weeks and will affect between 480 to 750 people, according to the union
representing workers at two of the sites.
The Saskatoon-based company said if
all three facilities were to remain idle for two months, potash production
could be reduced by roughly 700,000 tonnes.
Nutrien, created by the merger of Potash Corp. and Agrium, remains optimist on potash demand for 2020 despite current market weakness.
“We remain focused on a gradual ramp-up of production to meet demand and to ensure we operate the safest, most reliable and efficient potash business in the world,” it said in the statement.
The miner lowered its forecast earnings for the year in July to reflect the impact of wet weather on US planting and other factors that would reduce demand for potash in North America, China and India.